The term "minimum payment" refers to the lowest amount of money that a credit card holder is required to pay each month in order to keep their account in good standing. It is usually a percentage of the total balance or a fixed dollar amount, whichever is greater. Failing to make at least the minimum payment by the due date can result in late payment fees and negative effects on one's credit score. However, it is important to note that paying only the minimum amount can result in the accrual of interest charges and can prolong the time it takes to pay off the outstanding balance.
