Credit Term

Minimum Payment

The smallest amount you must pay on your credit card each month to keep the account in good standing. Under BNM's Credit Card policy document it is additive: at least 5% of the total amount outstanding, plus the full monthly instalment of any easy payment plan or balance transfer plan, plus any Automatic Balance Conversion instalment. Most banks also apply a floor of around RM50, which is a bank practice rather than a BNM rule. Paying only this keeps you current but is very expensive over time.

Paying at least the minimum by the due date avoids a late mark on your CCRIS record and late-payment charges. But the minimum is designed to keep the account ticking over, not to clear the debt: the rest of the balance rolls over and is charged interest, so paying only the minimum on a large balance can stretch repayment over years and cost far more than the original spend.

The key distinction is 'current' versus 'paid off'. Paying the minimum keeps you current; paying the full statement balance clears the debt and, on purchases, means you pay no interest at all thanks to the grace period. Whenever you can, pay the full balance — and if you cannot, pay as much above the minimum as possible to shrink the interest you are charged.

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