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ArticlesThe minimum payment is the smallest amount your credit-card statement requires you to pay by the due date to keep the account from being treated as unpaid under the card terms. Paying the minimum is not the same as clearing the statement balance. Any eligible unpaid balance can continue into the next billing cycle and may attract finance charges, so repeatedly paying only the minimum can make repayment slower and more expensive.
Minimum payment vs statement balance
The statement balance is the amount shown as outstanding for the billing period. The minimum payment is only the required minimum amount due for that statement under the card’s terms.
If you pay the full eligible statement balance by the due date, ordinary purchase transactions may avoid finance charges under the card terms. If you pay only the minimum, part of the balance remains outstanding and can continue to incur finance charges.
How is the minimum payment calculated?
There is no single percentage you should assume for every UAE credit card. The issuer defines the calculation in the Key Facts Statement, card terms and monthly statement. The amount can include a percentage or amount of the outstanding balance together with overdue amounts, fees, instalments or other components depending on the product.
Always use the minimum amount actually shown on your current statement rather than relying on a generic online percentage.
Why paying only the minimum can cost more
When you carry a balance from one month to the next, finance charges can apply to the unpaid amount according to the card terms. Because only part of your payment reduces principal after charges and other amounts are accounted for, repayment can take much longer.
CBUAE disclosure standards require credit-card statements to explain the cost implications when the customer does not pay the full amount outstanding by the due date.
Simple example
Assume your statement balance is AED 10,000 and your statement shows a minimum amount due of AED 500. Paying AED 500 may keep you from missing that statement’s minimum requirement, but it does not clear the remaining AED 9,500.
If the unpaid balance is subject to finance charges, the next statement can include those charges plus any new transactions. The exact cost depends on your card’s rate, transaction history and payment timing.
What if you miss even the minimum payment?
Missing the required minimum can lead to late-payment fees, continued finance charges and negative payment history reporting, subject to the card terms and applicable rules. It can also affect your ability to use the card or obtain new credit.
If you are struggling to meet payments, contact the issuing bank early rather than waiting for multiple missed statements.
How to reduce revolving card debt
Pay more than the minimum whenever your budget allows, avoid adding new spending to a balance you are already struggling to repay, and consider whether a structured repayment option such as an eligible instalment plan, balance transfer or debt-consolidation facility genuinely reduces total cost.
Do not choose a new credit product solely because the monthly payment looks lower. Compare fees, rates, tenor and total repayment.
Frequently asked questions
Is the minimum payment the amount I should normally pay?
It is the minimum required amount, not necessarily the financially optimal amount. Paying the full eligible statement balance generally avoids carrying revolving purchase debt under the card terms.
Is the minimum payment always 5% in the UAE?
Do not assume a universal percentage. The issuer’s current statement and Key Facts Statement determine the actual minimum-payment calculation.
Will I be charged interest if I pay only the minimum?
An unpaid eligible balance can attract finance charges according to the card terms. Check the annual rate and finance-charge rules on your card.
What happens if I pay less than the minimum?
The account can be treated as overdue, and late fees or other consequences may apply under the card terms.
Does paying the minimum hurt my credit score?
Paying on time is different from missing a payment, but carrying high debt and utilisation can still affect your overall credit profile. Credit scoring considers multiple factors.
Where can I see my minimum payment?
It should be shown on your monthly credit-card statement together with the payment due date and outstanding balance.