What's a credit card minimum repayment?

The minimum monthly repayment on a credit card is the lowest amount you have to pay to meet your credit agreement.

Paying your minimum monthly amount by the due date allows you to avoid late fees, but you will still pay interest on the balance that you owe. 

How much is the minimum repayment?

The minimum repayment will differ depending on your credit card provider and the amount you owe. For CommBank credit cards (that are not business credit cards), the minimum repayment amount is the greater of:

• Any amount you owe that exceeds your credit limit (excluding any amount by which your credit limit was exceeded in a previous statement period, and which remains unpaid);
• 2% of the closing balance, rounded down to the nearest dollar; or
• $25

If you have a CommBank Business Card (other than an Awards card):

• The threshold amount is $75 (rather than $25); and
• The minimum payment percentage is 2.5% (rather than 2%)

Should you repay more than the minimum repayment?

If you can, it’s best to repay as much of the amount owing as possible. This will minimise the amount of interest you’re charged, and help you clear the balance sooner.

Paying only the minimum repayment amount each month means you'll usually incur interest over time. This will significantly increase your costs, and will extend the time it takes to pay off your total.

Most credit cards come with an interest free period on purchases. Which means by paying the total amount owing each month, you'll usually be able to avoid paying any interest on your purchases.

Note that if you've made a cash advance transaction during the statement period, you're likely to still be charged interest on the cash withdrawn, in addition to the cash advance fee. Cash advances are blocked on certain types of credit cards.

How to add to your repayments

If you’re finding it difficult to pay more than your minimum repayment each month, one of the first actions you can take is to reduce your spending on your credit card.

A budget can help you assess whether there are any areas of your life where you feel you're overspending and could reduce your spending.

As part of your budget, try to set aside an amount to repay your credit card balance each month, and a date by which you'd like to make sure you've repaid the balance completely.