How Much of My Credit Card Balance Should I Pay Each Month?

Minimum Payment

When you get your credit card bill, you should make sure to pay at least the minimum. By doing so, your creditor will report the account as being current, and you will avoid interest rate hikes that would result from missing your payments.

Balance in Full

Credit cards have very high interest rates because the debt is unsecured. As long as you pay the entire balance, no interest will be charged on your account. In addition, your credit score would benefit because you would have a lower ratio of debt to available credit.

Bottom Line

You should pay as much of your credit card as you can, to avoid paying interest. However, you should always pay at least the minimum payment, to keep your credit score high and your interest rates down.