1. What is Chase Minimum Payment?

The Chase minimum payment is the lowest amount you must pay each month to keep your credit card account in good standing. It's typically calculated as the greater of 2% of your balance or $25 (whichever is higher).

2. How Does the Calculator Work?

The calculator uses the Chase minimum payment formula:

Where:

• \( MP \) — Minimum payment (USD)
• \( P \) — Principal balance (USD)
• 2% — Percentage of balance
• $25 — Fixed minimum amount

Explanation: The calculation ensures you pay at least $25 or 2% of your balance, whichever is greater.

3. Importance of Minimum Payment Calculation

Details: Understanding your minimum payment helps with budgeting and avoiding late fees, though paying only the minimum will result in paying more interest over time.

4. Using the Calculator

Tips: Enter your current credit card balance in USD. The calculator will determine your minimum payment based on Chase's standard formula.

5. Frequently Asked Questions (FAQ)

Q1: Is the minimum payment always 2% of my balance?
A: No, it's the greater of 2% of your balance or $25 (whichever is higher). For very small balances, it may be the full amount.

Q2: What if my calculated minimum payment is less than $25?
A: You'll still need to pay $25, as that's the minimum required payment for Chase credit cards.

Q3: Does making only minimum payments affect my credit score?
A: While it won't directly hurt your score, carrying high balances relative to your limit can increase your credit utilization ratio, which may lower your score.

Q4: Are there any exceptions to this calculation?
A: Some Chase cards or promotional balances may have different minimum payment requirements. Always check your cardholder agreement.

Q5: How much interest will I pay if I only make minimum payments?
A: This depends on your APR and balance. Use a credit card payoff calculator to estimate total interest costs.