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Citi Minimum Payment Formula:
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The Citi credit card minimum payment is the lowest amount you must pay each month to keep your account in good standing. It's typically calculated as 1% of your principal balance plus interest charges, with a minimum of $25.
The calculator uses Citi's minimum payment formula:
Where:
Explanation: The formula ensures you pay at least 1% of your balance plus interest, but never less than $25 (or your full balance if it's under $25).
Details: Understanding your minimum payment helps with budgeting and avoiding late fees. However, paying only the minimum extends repayment time and increases total interest paid.
Tips: Enter your current principal balance and monthly interest charges (found on your statement). Both values must be non-negative USD amounts.
Q1: Why is there a $25 minimum?
A: This ensures meaningful payments and covers administrative costs, even for small balances.
Q2: Does paying minimum affect my credit score?
A: Yes, consistently paying only the minimum may be seen as higher risk by lenders.
Q3: How can I reduce my minimum payment?
A: Paying down your principal balance or negotiating a lower interest rate will reduce future minimum payments.
Q4: Are there exceptions to the $25 minimum?
A: Some accounts may have different minimums, especially promotional balance transfers or foreign currency transactions.
Q5: How long will it take to pay off paying only minimums?
A: For large balances, it could take decades and cost thousands in interest. Always pay more than minimum when possible.