As a finance professor, it is imperative to understand the concept of minimum payment in credit cards. This refers to the minimum amount that a card holder must pay in order to avoid defaulting on their account. Banks often set this amount higher if they have doubts about the card holder's ability to repay. In most cases, the minimum payment for credit cards is typically 2% of the outstanding balance. It is crucial to keep up with this payment to maintain a good credit score and avoid potential penalties.
