How Credit Card Work(1)

(转载自http://www.citibank.com.my）

Your minimum payment is not the same as your account balance. If you assume the minimum is all you need to pay each month, you could owe far more in finance charges than you budgeted.

Account balance
This is your total accumulated balance as of the statement date. It includes any unpaid balance from the previous month, new purchases since the closing date of your last statement, and any cash advances you may have taken. The credit card company will also add in any other charges such as an annual fee, finance charges and other fees.

Minimum payment
This is the smallest amount of your balance you can pay by the due date and still meet the terms of your card agreement. The minimum is often a specific fraction of the balance, such as 5% of the outstanding balance. By always putting at least the minimum payment due on your credit card, you avoid paying late fees.

Keep in mind that the minimum payment is not the only amount you owe. You will be charged interest on the portion of the balance that you don't pay by the due date.

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