The Finch Formerly Known As Gold

17 October 2005

Your new doubled mininum payment

As projected here before, it isn't, except in certain odd combinations of balance, fees and interest rate.

Most of the Big Boys are phasing in their new monthly minimums. I quoted one last month, and the others are looking very much like it. A sample, received this weekend:

The Minimum Payment Due will be the greater of either $10 or the total of the following amounts: (a) One percent (1%) of the New Balance on your Account, as shown on your monthly Statement, after first subtracting current cycle Finance Charges and Late Payment Fees; (b) current cycle Finance Charges other than Cash Advance Fees; (c) any Late Payment Fee charged in the current Billing Cycle; and (d) the greater of either any overlimit amounts (less any current cycle Late Fee provided that this excluded Late Fee will not exceed the overlimit amount) of any past due amounts.

After dejargonization, this is essentially the same rule as at that other bank, except for the $10 floor instead of $15.

The bank whose card I dumped this weekend is slightly different: it's either one percent plus finance charges and fees, or two percent overall, whichever be greater. Incidentally, this did not play a role in my decision to cancel that card.

Posted at 3:50 AM to Common Cents


I have only received one so far and it has a $15. floor and then the rest the same.

Back when American Express first introduced the Optima card it had 4% payments and while they were high I used to like it because it made a dent in the balance. But they caved to people demanding lower payments and dropped it to 2%.

Posted by: ms7168 at 9:58 AM on 17 October 2005