With credit cards, you have the option of paying the bill off every month. If you do, there’s a chance you won’t have to pay any interest. This also makes having credit beneficial for you. If you decide to pay the minimum payment, you will start to pay interest on the amount you did not pay back. If you do that, it will become more expensive.
If you do not pay the minimum amount due, also called the minimum payment:
- your interest rate might go up
- you might have to pay fees
- your credit will cost you a lot of money