Method 2: Percent of the Balance + Finance Charge For example, your minimum payment is 1% of your balance. Your credit card balance is $1,000. Your credit card APR is 12% and your finance charge for the month is $10. Assuming you owe no fees, your minimum payment would be $10 + $10 = $20.Click to see full answer. Simply so, how do minimum payments work?The credit card minimum payment is determined by the credit card issuer. It is generally is based on the larger of 1) a set dollar amount or 2) the sum of a percentage of the new balance, and, if applicable, interest charges and late fees. If you pay the credit card minimum payment, you won’t have to pay a late fee.Likewise, why is my minimum payment so high? Usually, a minimum payment is growing for one (or possibly some combination of) the following reasons: You’re charging more – If your issuer is taking a percentage of your outstanding balance to calculate your minimum payment, charging more will cause this figure to rise. Herein, what happens if I only pay the minimum payment on my credit card? When you make only the minimum payment on your credit card, you’re giving yourself temporary relief. But you’re also committing to paying more in interest charges later. If you pay the minimum toward your balance each month, here’s what you can expect to happen: Paying down your debt will take much longer.How does Amex calculate minimum payment?American Express sets its minimum payment as the greater of interest charged on the statement plus 1 percent of the new balance (excluding any over-limit amount, penalty fees and interest on the statement); or $35. The minimum payment is then rounded up to the next highest dollar amount.