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RBC Credit Card Minimum Payment

RBC Minimum Payment Formula:

\[ MP = \max(3\% \times P, \$10) \]

CAD

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1. What is RBC Credit Card Minimum Payment?

The RBC Credit Card Minimum Payment is the smallest amount you must pay each month to keep your account in good standing. It's calculated as the greater of 3% of your balance or $10.

2. How Does the Calculator Work?

The calculator uses the RBC minimum payment formula:

\[ MP = \max(3\% \times P, \$10) \]

Where:

Explanation: The calculation ensures you pay at least $10 or 3% 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 CAD. The calculator will determine your required minimum payment.

5. Frequently Asked Questions (FAQ)

Q1: Is the minimum payment the same for all RBC credit cards?
A: Most RBC credit cards use this formula, but some specialized cards may have different terms. Always check your cardholder agreement.

Q2: What happens if I pay less than the minimum?
A: You may be charged a late fee and it could negatively affect your credit score.

Q3: How is interest calculated if I only pay the minimum?
A: Interest is charged on the remaining balance and compounds daily based on your annual interest rate.

Q4: Is there a maximum minimum payment?
A: No maximum, as it's a percentage of your balance. If your balance is high, your minimum payment will be correspondingly higher.

Q5: Does paying the minimum keep my credit in good standing?
A: Yes, but consistently paying only the minimum may be viewed negatively by lenders and can lead to significant interest charges.

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