What is the minimum monthly payment on an Apple Card?

Understanding Apple Card Minimum Payments

Apple Card, while offering a streamlined user experience, operates with a specific minimum payment structure. Understanding these guidelines is crucial for managing your account effectively and avoiding potential interest charges.

The minimum payment on an Apple Card isn’t a fixed percentage or dollar amount. Instead, it’s calculated based on a tiered approach. The key factors determining your minimum payment each month are:

• $25 Threshold: A fundamental minimum payment of $25 is always applied. This ensures a manageable starting point, regardless of the balance amount.

• 1% of the Statement Balance: Your minimum payment also considers 1% of the total amount outstanding on your statement. This percentage-based calculation helps keep smaller balances manageable.

• Superiority Rule: The minimum payment is ultimately determined by whichever of these three figures is highest: $25, 1% of your statement balance, or the sum of any applicable fees, past-due amounts, and interest. This prioritizes addressing any outstanding fees or late payments.

• Full Payment Requirement: For balances under $25, the full balance is due. This encourages prompt repayment for smaller outstanding amounts.

Example Scenarios:

• Scenario 1: Your statement balance is $200. The minimum payment calculation would be: $25 (200 x .01 = $2). The minimum payment is $25.

• Scenario 2: Your statement balance is $750. The calculation would be: $7.50 (750 x .01 = $7.50). The minimum payment is $25.

• Scenario 3: Your statement balance is $10, a past-due amount of $5 and an interest charge of $2.00 are also present. The minimum payment will be the total of those, or $7.00.

In essence, Apple Card prioritizes a minimum payment of $25, automatically adjusts for smaller balances and ensures sufficient payment for outstanding fees or debts. Understanding this dynamic is key to managing your Apple Card responsibly. Always check your monthly statements for precise figures and details.