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Discover Card Minimum Payment Calculator

Discover Card Minimum Payment Formula:

\[ MP = \max(2\% \times P, \$20) \]

USD

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1. What is the Discover Card Minimum Payment?

The Discover Card minimum payment is the lowest amount you must pay each month to keep your account in good standing. It's calculated as the greater of 2% of your balance or $20.

2. How Does the Calculator Work?

The calculator uses the Discover Card minimum payment formula:

\[ MP = \max(2\% \times P, \$20) \]

Where:

Explanation: The formula ensures you always pay at least $20 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 principal balance in USD. The calculator will determine your minimum payment based on Discover'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 $20. For balances under $1,000, you'll typically pay $20.

Q2: What if my balance is less than $20?
A: You'll pay the full balance amount as your minimum payment.

Q3: Does paying only the minimum affect my credit score?
A: No, as long as you pay at least the minimum on time. However, high balances relative to your limit can affect utilization.

Q4: How can I reduce my minimum payment?
A: By paying down your principal balance. The minimum payment will decrease as your balance decreases.

Q5: Are there exceptions to this calculation?
A: In special circumstances (like promotional rates or hardship programs), different terms may apply.

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