RBC Minimum Payment Formula:
From: | To: |
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.
The calculator uses the RBC minimum payment formula:
Where:
Explanation: The calculation ensures you pay at least $10 or 3% of your balance, whichever is greater.
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.
Tips: Enter your current credit card balance in CAD. The calculator will determine your required minimum payment.
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.