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Credit Card repayments explained

What are Credit Card repayments?

What are Credit Card repayments?

When your statement arrives, you will have a choice of repayment options. You can pay off the entire Credit Card bill on, or before, the statement due date – in which case you’ll avoid paying more interest – or you can choose to spread your Credit Card repayments out over time by paying at least the minimum monthly repayment amount. This option will mean you will be paying more interest.

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Pay off your Credit Card bill more efficiently

Pay off your Credit Card bill more efficiently

You have a number of options that will help you effectively manage your Credit Card balance. These include being smart about when you make purchases so that you utilise your interest free period, or using the Amex® mobile app to keep a close eye on your balance. And, of course, paying off your balance in full each month.

However, if paying off your Credit Card bill in full isn’t an option, you can always reduce the amount of interest you’ll have to pay by paying more than the minimum monthly repayment amount.

Remember, the only way to avoid paying interest is to pay off your total Credit Card balance on or before the statement due date.

Automatic Credit Card payment plans

Automatic Credit Card payment plans

Automatic payment plans are a great way to ensure that you pay your Credit Card bills on time. If you set up a direct debit to automatically pay a certain amount every month, you’ll always have the peace of mind of knowing you’ve made a payment. You can also create SMS or email alerts to remind you that payment is due.

Useful terms

Useful terms

  • Opening balance: The balance on your account at the beginning of a particular statement period.
  • Closing balance: The amount you owe at the end of a particular statement period.
  • Minimum monthly repayment: The minimum you have to pay each statement period. For American Express® Credit Cards, this is set at a minimum of $30 or 2.5% of your closing balance – whichever is greater. It is not recommended as a long-term solution because if you make only the minimum monthly repayments, you will pay more interest and it will take you longer to pay off your balance.
  • Minimum payment due date: The final day by which you have to pay at least the minimum monthly repayment amount to avoid late payment charges.

What exactly is a ‘Credit Card minimum repayment’?

The minimum repayment is the very least you have to pay by the payment due date to meet the obligations of your Credit Card contract. This is set at a minimum of $30 or 2.5% of your closing balance – whichever is greater. It is not recommended as a long-term solution because if you make only the minimum monthly repayments, you will pay more interest and it will take you longer to pay off your balance.


Your statement will tell you how long it will take to pay off your Credit Card bill if you only pay the minimum amount on your current balance (provided no additional further transactions are made on your Credit Card). If it will take you over two years to pay off your Credit Card balance in full by paying just the minimum each month, your statement will also show you how much interest you could save by increasing your payment amount to clear your balance within two years.

How do I pay my Credit Card bill?

There are various ways to make Credit Card repayments, so you can choose the method that best suits you.

Learn more

FAQs

Do I still get charged interest if I pay the minimum repayment?

Do I still get charged interest if I pay the minimum repayment?

Yes, in this case the interest will be shown on the following statement.

If I pay off my closing balance in full, will I get charged interest?

If I pay off my closing balance in full, will I get charged interest?

If you have been paying the minimum payment amount for a number of months and then decide to pay in full, interest will still appear from the previous month’s closing balance. This is known as trailing interest.

There are other times when you can be charged interest even if paying your full closing balance – for example, if you’ve made a cash withdrawal or a balance transfer – as there are no interest free days associated with these features.

What is a late payment fee?

What is a late payment fee?

If you miss a payment, you may need to pay a late payment fee. This will be specified as a minimum repayment warning in your statement.

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