The minimum payment due is the least payment your bank requires by the date on your credit-card statement. Paying it on time is different from repaying the balance: the remaining debt can carry finance charges into the next billing period.
Use the minimum shown on your own statement. It can depend on the balance, instalments, fees, overdue amounts and the issuer's repayment rules; a percentage you have seen for another card is not a substitute.
What happens when you pay only the minimum?
Your payment reduces the amount owed, but it does not clear the account. Emirates NBD's payment guidance explains that the remaining balance carries forward with applicable finance charges when only the minimum amount is paid.
The next statement can therefore contain both the balance you did not repay and new interest or profit charges. New spending adds another amount to settle. Paying the minimum repeatedly can lengthen repayment and increase its total cost.
A minimum payment also does not establish that you qualify for an interest-free period on new purchases. That depends on the issuer's full-payment conditions and the state of the account.
A small payment leaves a large balance
Take an illustrative AED 2,000 balance. A payment of AED 100 leaves AED 1,900 of that balance unpaid, before subsequent interest, fees or new spending. Paying AED 2,000 leaves none of that original balance unpaid.
| Starting balance | Payment | Original balance left unpaid |
|---|---|---|
AED 2,000 | AED 100 | AED 1,900 |
AED 2,000 | AED 2,000 | AED 0 |
| Starting balance | Payment | Original balance left unpaid |
|---|---|---|
AED 2,000 | AED 100 | AED 1,900 |
AED 2,000 | AED 2,000 | AED 0 |
The chart shows this arithmetic. AED 100 is a hypothetical payment, not a universal minimum. This example compares the balance repaid; it does not calculate interest or show the amount needed to settle an account with accrued charges.
Minimum payment, statement balance and total outstanding
| Label | Meaning |
|---|---|
Minimum payment due | The payment the statement requires by its due date |
Statement balance | The balance recorded when the billing period closed |
Current or total outstanding | The current posted amount owed, reflecting later activity too |
Payment to avoid charges | The bank's calculated amount for avoiding the charges covered by that option |
Other amount | A payment amount you enter yourself |
| Label | Meaning |
|---|---|
Minimum payment due | The payment the statement requires by its due date |
Statement balance | The balance recorded when the billing period closed |
Current or total outstanding | The current posted amount owed, reflecting later activity too |
Payment to avoid charges | The bank's calculated amount for avoiding the charges covered by that option |
Other amount | A payment amount you enter yourself |
For example, an AED 2,000 statement followed by AED 500 of new posted purchases can show AED 2,500 current outstanding if there are no other entries. The two balances refer to different points in time. Read the statement guide before choosing between the payment options in your app.
Does paying the full statement avoid all charges?
Eligible purchases can receive an interest-free or profit-free period when you meet the issuer's repayment conditions. That does not mean every transaction on the account becomes free of charges.
Cash advances, balance transfers and instalment plans can have separate pricing. Existing revolving debt can also generate accrued or residual charges. Emirates Islamic's Key Facts Statement, for example, excludes cash advances and certain other balance types from its profit-free period.
If you have been carrying a balance, ask the bank what amount and payment timing will clear the borrowing and accrued charges. Do not assume the amount shown before the next statement includes every charge still to be billed.
How to make the payment correctly
Read the actual statement minimum and due date. Check how long your chosen payment method takes to reach the card account. An instruction made on the due date can arrive later, depending on the method and issuer's cut-off rules.
If you use automatic payment, check whether it is set to the minimum or the required full-payment amount. Keep enough money in the funding account and confirm that the payment was received. An automatic instruction still needs sufficient funds and successful processing.
Review any instalment plan separately, including its monthly payment and remaining principal. Do not confuse the plan's unbilled balance with the amount due this month.
If you cannot pay the required amount
Contact the issuer before the due date and explain what you can repay. Ask about repayment support, the cost of any proposed plan and its effect on your account. Agree on a payment schedule you can meet and keep a record of the arrangement.
Avoid adding discretionary purchases while you are trying to clear an unpaid balance. Taking cash from another credit card can add fees and borrowing charges rather than solve the shortfall.
The finance-charge guide explains interest and profit-rate terminology. For the short definition, see minimum payment due in the glossary.
Kredit provides informational content only and does not offer financial advice. We do not guarantee accuracy and recommend consulting a licensed financial professional before making decisions.