So, paying minimum amount is not a good option when repaying credit card dues?
Answer
Answer
Answer
Not necessarily.
The minimum amount due is the minimum amount your credit card company allows you to pay to avoid paying any late payment penalty. This facility is especially helpful for those individuals who have liquidity crunch but don’t want to adversely impact their credit history.
The only way in which paying minimum amount due can be harmful to one’s credit history is if the individual makes a habit out of it.
Repaying minimum amount due is a luxury individuals with tight liquidity can gain from, but it should not be misused by paying only minimum amount due every month as that will have a detrimental impact on one’s credit history and score.