All You Need To Know About The Minimum Amount Due On Your ICICI Credit Card

minimum amount due credit card statement pay

If you have recently applied for an ICICI bank credit card, this is a must-read. There are a lot of things you need to understand before having the power to buy anything, anytime and anywhere. Credit cards are amazing credit instruments. They give you the ability to fulfill your desires, but they come with consequences and put in a big debt trap. If you have jumped the gun or in the financial jargon, if you have overspent than your credit limit, you might be not able to pay the debt on time and put yourself in debt. 

But that doesn’t mean you have to sacrifice your financial credibility. And this article is all about the same. While there may come a time when you don’t have enough money to pay the total amount due on the card, you can still pay the Minimum Amount Due and protect your credibility from a big blow. It is an amazing system formed by the banks and can save you from paying levied charges so, let's get the learning started. Also, if you want to check ICICI credit card status, you can log in to their official website and see to the details. 

What Is The Minimum Amount Due? 

You don’t need to make a wild guess, the name itself is indicative. It is the minimum amount you have to pay before or on the due date to maintain your card amount. It is a small portion of the principal outstanding every month. 

As for many banks, the amount is calculated as 5% of the outstanding balance. And ICICI bank to follows the same rule. However, it can be higher, if you have bought something on EMI using your credit card or have spent more than your credit limit. Also, it can be due to the outstanding payable amount from previous bills. It is added to your current minimum due amount, thus requiring you to pay at least that amount of money to the bank. 

How Is It Beneficial To You? 

There are many benefits of the Minimum Amount Due, and one of the best one is: on paying MAD or Minimum Amount Due you can avoid paying the late payment fee. Yes, usually the late fee can range between Rs 100 and Rs 1000 depending on the amount and you. So, you can avoid that, however, you still have to pay the interest on the outstanding bill as it is not waived off. 

What Are The Pitfalls? 

Here are certain conditions concerning Minimum Amount Due on ICICI Credit Card to help you understand it further: 

- If you don’t pay the minimum amount due: If you don’t pay the minimum amount due, there are high chances that you will be levied with interest rates, late payment fees, and other charges. There is also a possibility of your card getting suspended due to crossed credit limit than allowed on your credit card. 

Your credit score might also receive a big blow due to you not being able to pay the minimum amount due, causing much delay in getting a loan in the future. 

- If you pay the minimum: At the end of the month that you have crossed your credit limit, the minimum amount due can give you some relaxation. As if you have paid the minimum amount due, you will not require to pay the levied charges due to late payment and others. 

But this doesn’t mean you are off the hook, if you are just paying the minimum amount due on your credit card, you are bulking up a lot of amounts that is due on your card and it will quickly multiply. 

How Is Minimum Amount Due Calculated? 

Minimum Amount Due is 5% of the balance outstanding on the statement date. If you have opted for EMI balance transfer or purchase on EMI, that amount will be added to your Minimum Amount Due. 

If you have an unpaid Minimum Amount from the previous statement it will be added to your current minimum amount due to calculating the Total Minimum Amount Due. 

For example, if the credit card statement is generated on 5th of every month, the payment has to be made by 26th of every month. The interest will be charged 3% per month where the late payment fees of Rs 500 is levied. If there is any EMI or unpaid dues from the previous statement those will be added to the current outstanding bill and hence causing the amount of the minimum amount due on your card to increase significantly. 

How Is Total Amount Due Different Than Minimum Amount Due? 

The differentiation is very easy. The total amount due is equal to the total expenditure made on the credit card in a billing cycle, while the minimum amount due is a small percentage of the total amount spent. 

You can opt to pay the total amount due on your card, you don’t have to pay an extra amount or levied charges. While paying the minimum amount due or any amount more than the minimum amount due will be less than the total amount due that would be charged interest on the balance amount. 

FAQs On ICICI Bank Credit Card Minimum Amount Due 

1. What are the ways to pay the minimum amount due on ICICI credit card? 

You can choose to pay the minimum amount due on the card by net banking, mobile banking applications, ATM fund transfers, over the counter payment, cheque payment or any other option. 

2. What is better: paying the total amount outstanding or paying only the minimum amount due? 

Always try to pay the total outstanding amount on your credit card. If not possible then only try to make the minimum amount due. It is because you will have to pay the interest levied on the balance amount and it keeps growing faster every month varying between 1.75% to 3.5% per month. 

Also, your credit score may take a hit, and you might face difficulties in getting a loan later. Consider it as a convenience, not a shortcut to avoid paying your bills to the bank.

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