1- Pay just part of the credit card balance

Minimum payment on your credit card: Maximum interest!

Ideally, you should be able to pay off your credit card balance each month. If you can’t pay off the balance, you have to make a minimum monthly payment. You can find this amount in your contract. It is usually the greater of $10 or a percentage of the balance owing.

If you got your credit card after August 1, 2019, your minimum payment may not be less than 5% of the balance owing on your monthly statement or $10, whichever is greater. However, depending on the contract, your credit card issuer may charge a larger amount. If you don’t have your contract in your files, contact the issuer directly to get the information.

If you got your credit card before August 1, 2019, the minimum monthly payment should currently be less than 5% of the balance. However, this percentage will be gradually increased through 2025. Your credit card issuer will require that you pay back at least the following percentage of the balance owing on your monthly statement:

• 3.5% as of August 1, 2022
• 4% as of August 1, 2023
• 4.5 % as of August 1, 2024
• 5% as of August 1, 2025

Paying off your credit card by making only the required minimum payment can cost you a pretty penny in interest. Paying off a larger amount will help you pay less interest on what you borrow and pay off your card faster!

Minimum payment increased from 3% to 3.5% of card balance

_{Note: Approximate results, 20% annual interest rate, no new purchases on the credit card. If you add more purchases without paying the balance, the interest charges you pay will be even higher.}

Balance	Minimum payment	How long it will take to pay off the balance	Interest paid	Savings in interest charges
$1,000	Before the increase: $30 After the increase: $35	Before the increase: 11 years After the increase: 9 years	Before the increase: $991 After the increase: $755	$236
$3,000	Before the increase: $90 After the increase: $105	Before the increase: 18 years After the increase: 14 years	Before the increase: $3,491 After the increase: $2,573	$918

Minimum payment of 5% of card balance

_{Note: Approximate results, 20% annual interest rate, no new purchases on the credit card. If you add more purchases without paying the balance, the interest charges you pay will be even higher.}

Balance	Minimum payment	How long it will take to pay off the balance	Interest paid	Savings in interest charges based on a 3% interest rate
$1,000	$50	6 years	$445	$546
$3,000	$150	9 years	$1,445	$2,046

Your best bet is to pay the balance in full by the due date on the monthly statement. You won’t have to pay interest and you’ll have more money in your pocket! 

For more information, visit the OPC website: Minimum payment: maximum intere$t This link will open in a new window

2- Pay your bill late

You expect to receive some money next week, so does it really matter that much if you miss the due date on your statement by a day or two? Sadly, yes! Not only will you pay interest on the full amount owing on your purchases, but the missed payment will end up on your credit report because you didn’t fulfill your end of the contract with the card issuer. It’ll hurt your credit score and, to put it another way, your image as a borrower.

3- Request a cash advance (cash withdrawal)

A cash advance is where you withdraw cash against your credit card account at an automatic teller machine, for example. A cash advance is borrowed money. There’s no interest holiday, which means you start paying interest the moment you withdraw the amount.