Credit Card Glossary

Puzzled by credit card jargon? Browse the glossary for the definitions of common and confusing credit card terms.

Minimum payment

The lowest amount that you can repay on your credit card balance each month in order to remain in good standing on that account. In 2004, federal guidelines compelled issuers to raise minimum payment amounts. Previously, many issuers set the minimum payment amount so low that balances (fed by interest charges) would take years to pay off. Now, the minimum payment amount generally covers interest, any fees and small percentage of the balance.