What exactly is a ‘Credit Card minimum repayment’?

Credit Card minimum repayment or the Minimum Due amount is the minimum amount that you need to pay on or before the Payment Due date to keep your account functioning and avoid incurring any late payment fees.

Credit Card Charges and Fees

Don’t you love the convenience and flexibility of instant credit? Credit cards are not only easy to use, but also earn you great rewards. Like most good things in life, they come with a price. Understanding the costs associated with a Credit Card can help you to make the most of it.

What Credit Card Charges Do I Need to Pay

Credit Card Fees

American Express Credit Card Fees & Interest Rates

How to Avoid Credit Card Fees and Charges

Charge & Credit Card Terms

Compare AmEx Cards

What Credit Card Charges Do I Need to Pay

The charges you pay partly depend on the type of card you have and how you use it. For credit card usage in India, you may come across the following types of charges.

Monthly Percentage Rate

MPR is commonly known as the interest rate of a credit card. Any unpaid balance gets carried over to the next statement, and MPR gets levied on that. E.g., if your credit card has an MPR of 35%, you can calculate the daily interest rate by multiplying it by 12 and then dividing it by 365. And this gives you a daily interest rate of 1.15%. If you had an outstanding balance of Rs. 1000 on your card, you would be charged INR150.68 in daily interest. The more you repay on your monthly credit card bill, the less the interest your credit card will accrue. For more details, please refer to MITC.

Credit Card Fees

Credit card fees is also known as annual fees or annual maintenance charge, credit card fees is an annual fee charged to use a credit card. In general, a card with higher annual fees offers more benefits and rewards than a card with lesser annual fees.For example, American Express ® Platinum Reserve^SM Credit Card charges INR 5,000 plus applicable taxes in the First Year and INR 10,000 plus applicable taxes from the second year onwards. Cardholders enjoy a range of benefits, including exclusive golf entry and airport lounge use.

Fees and interest rates on American Express® Credit Cards

The following table gives you an overview of the various credit cards offered by Amex and the interest rates and fees associated with them.

Fees and Interest rates on American Express Credit Cards

The various Credit Cards and their fees.

Card Name	Card Type	Annual Fee (Applicable taxes extra)	Finance Charges Per Month for Goods & Services, Cash & Balance Transfer	Cash Advance Fee
American Express® Platinum Card	Charge Card	INR 60,000	N/A	3.5% of the Cash Advance amount, subject to a minimum of INR 250
American Express Platinum Reserve^SM Credit Card	Credit Card	INR 5,000 (1^st year) INR 10,000 (2^nd year onwards)	3.5%*** p.m.	3.5% of the Cash Advance amount, subject to a minimum of INR 250
American Express SmartEarn™ Credit Card	Credit Card	INR 495(1st year) INR 495^## (2nd year onwards)	3.5%*** p.m.	3.5% of the Cash Advance amount, subject to a minimum of INR 250
American Express® Platinum Travel Credit Card	Credit Card	INR 3,500 (1^st year) INR 5,000 (2^nd year onwards)	3.5%*** p.m.	3.5% of the Cash Advance amount, subject to a minimum of INR 250
American Express Membership Rewards® Credit Card	Credit Card	INR 1,000 (1^st year) INR 4,500 (2^ndyear onwards)	3.5%*** p.m.	3.5% of the Cash Advance amount, subject to a minimum of INR 250
American Express® Gold Card	Charge Card	INR 1,000 (1^st year) INR 4,500 (2^nd year onwards)	N/A	3.5% of the Cash Advance amount, subject to a minimum of INR 250

How to Avoid Credit Card Fees and Charges?

With careful financial management, you can sidestep attracting extra charges on your card. Most credit cards charge you an annual fee for their usage. But some waive off this fee if you use your card regularly and achieve a minimum spend in a given period. For example, American Express SmartEarn Credit Card offers a renewal fee waiver on an eligible spend¹ of INR 40,000 and above in the previous year of Card Membership. Some basic cards may also come with a free membership , with no annual fees. The fees depend on the card category you choose. Here are some tips to help you avoid additional charges:

Pay your balance in full each month
Paying the full amount owed each month ensures that you won’t have to pay interest on the money you have borrowed. If possible, set up a monthly direct debit to repay your card balance in full.
You can also set up payment due date reminders on the Amex App so that you avoid missing a payment.
Pay as much of the balance as possible
If you can’t pay the full balance each month, then endeavor to pay as much as possible. All credit cards come with ‘minimum monthly repayment’ amounts. Making these payments ensures that you don’t incur any late fees. You will still, however, accrue interest at the monthly percentage rate on all Charges from the date the Cardmember incurs the transaction until they are fully repaid, except where an interest free period applies.
Do not exceed your credit limit
Your credit limit is your contractually agreed spending limit per month. If you overspend this limit on your card, your transaction might get declined, or you may have to pay an over-limit fee. This can compromise your credit rating.

Useful Credit Card 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 Payment:

The minimum you must pay each statement period. 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 must pay at least the minimum monthly repayment amount to avoid late payment charges.

FOOTNOTES

## Annual fee of INR 495 will be 100% waived off if total money spent on American Express SmartEarn™ Credit Card in the immediately preceding Card Membership year is INR 40,000 or more.

*** Cardmember will be charged a revised interest rate of 3.99% per month if the Minimum Payment Due is not paid by the due date thrice in a 12-month period.

** Cardmember will be charged a revised interest rate of 3.99% per month if the Minimum Payment Due is not paid by the due date twice in a 12-month period.

1. Eligible spends do not include cash advances, express cash transactions, drafts made from the account, balance transfers and fees.