The minimum monthly payment is the smallest amount of money a borrower can pay on a revolving credit account each month and still be in good standing with the credit card company.
Consumers who only pay the minimum monthly payments will ultimately take longer to pay off their balances and will pay higher interest costs compared to consumers who pay more than the minimum.
Revolving credit accounts allow consumers to keep accounts open as long as they remain in good standing and are not delinquent.
Non-revolving credit accounts pay principal to the borrower upon loan approval and require the borrower to repay principal plus interest in a fixed payment schedule.
Borrowers will use non-revolving accounts for large purchases such as cars and real estate.
American Express cards are issued by American Express, a publicly traded financial services company, and are payment cards, credit cards, or prepaid cards.
The average outstanding balance refers to the unpaid portion of any term, installment, revolving or credit card debt that earns interest over a specified period of time.
The annual interest rate on a credit card is the annual interest rate that is applied monthly, i.e. the monthly amount charged on the account is one twelfth of the annual annual interest rate.