In today’s digital era, credit cards have become a part of daily life. From online shopping and travel bookings to emergency expenses—credit cards are everywhere. But one small habit—paying only the "Minimum Due"—can silently destroy your financial health.
If you believe paying just the minimum due every month keeps you safe—think again. This habit can eventually drop your CIBIL score to zero, blocking your access to any future loans or credit.
What is a CIBIL Score and Why Is It So Important?
Your CIBIL Score is a three-digit number ranging from 300 to 900, indicating your credit history and financial trustworthiness. A higher score makes it easier to get loans with lower interest rates.
| CIBIL Score Range | Status |
|---|---|
| 750–900 | Excellent |
| 700–749 | Good |
| 650–699 | Average |
| 600–649 | Poor |
| 300–599 | Very Poor |
A score of 0 or NA means no credit history or extremely poor credit behaviour.
What Is Minimum Due and Why Is It So Dangerous?
Each month, your credit card bill shows:
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Total Outstanding: The full amount you owe
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Minimum Due: Usually 5% of the total amount or a fixed minimum
Banks allow you to pay just the Minimum Due and carry forward the remaining balance. But here’s the catch—the unpaid balance continues to accrue interest at a high rate of 3–4% per month, or 36–48% annually.
Example:
If your total credit card bill is ₹50,000 and the minimum due is ₹2,500—paying only that means you’ll be charged interest on the remaining ₹47,500. Over time, that interest balloons, and you could fall into a debt trap.
How Minimum Due Payments Damage Your Credit Score
1. Increase in Credit Utilization Ratio (CUR)
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CUR = (Total Credit Used / Credit Limit) × 100
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Ideal CUR should be below 30%
If you keep paying only the minimum due, your unpaid balance grows, which increases your CUR. High CUR is a major negative signal to credit bureaus, as it accounts for 30% of your CIBIL score.
2. Negative Impact on Payment History
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Payment history contributes 35% to your credit score
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Regularly avoiding full payments categorizes you as a "Revolving Credit User", a red flag for lenders
3. Potential Impact Even with EMI Conversions
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Converting dues into EMIs may look attractive, but if you miss payments, it still hurts your score
4. Debt Trap Risk
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With interest piling up every month, your dues may become unmanageable
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If your credit limit gets maxed out, it signals poor credit management and harms your score further
Can Your CIBIL Score Really Become Zero?
Yes. If you repeatedly pay only the minimum due and fail to clear the full outstanding balance, your credit history deteriorates.
If you don’t pay your dues correctly for six months or more, your score can fall to Zero or NA, indicating severe credit misuse or inactivity. This can:
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Disqualify you from new loans or credit cards
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Lead to account closures
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Make future borrowing nearly impossible
So What Should You Do?
✅ Always Pay the Full Outstanding Amount
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Avoids interest charges
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Maintains a good CUR
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Shows you’re financially disciplined
✅ If Not Full, Pay More Than Minimum Due
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Pay at least 50-70% of the bill to keep dues under control
✅ Keep CUR Below 30%
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Spend only within safe limits. For example, if your credit limit is ₹1 lakh, keep monthly usage below ₹30,000
✅ Enable Auto-Debit for On-Time Payments
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Avoids accidental payment delays
✅ Set Monthly Reminders for Due Dates
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A simple habit that keeps your score healthy
✅ Use EMI Options Smartly
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Only when necessary, and make sure to pay EMIs on time
✅ Avoid Unnecessary Expenses
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Credit card is not “free money”—spend responsibly
What’s the One Mistake That Can Ruin Everything?
Regularly paying only the “Minimum Due” while ignoring the total bill—this one habit can eventually drag your CIBIL score down to zero.
Bonus: How to Improve Your CIBIL Score if It’s Already Low
If your credit score is already damaged, here’s what you can do:
| Action | Benefit |
|---|---|
| Clear old outstanding balances | Starts improving your history |
| Avoid taking new loans/credit | Allows your score to stabilize |
| Use your credit card carefully | Keeps CUR in check |
| Always pay on time | Builds a strong payment history |
| Monitor your credit report | Fix errors, track improvement |
You can check your free credit report every 3 months via the CIBIL official website.
Conclusion: Be a Smart User, Not a Careless Spender
Credit cards are powerful financial tools, but only when used wisely. Misusing them by sticking to Minimum Due Payments can lead to financial disaster.
If you’re relying on the “minimum due” to get through each month, you’re not managing money—you’re inviting trouble.
Remember:
“A credit card is your friend only when you treat it with responsibility. Otherwise, it becomes your biggest financial enemy.”
Disclaimer:
This article is for informational purposes only. Please consult a qualified financial advisor before making any investment or borrowing decisions.
Key Takeaways:
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Paying only the minimum due creates a false sense of safety
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Over time, interest piles up, and your credit burden increases
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High credit utilization and poor payment history lower your CIBIL score
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Eventually, your score could drop to zero, blocking all future credit options
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Solution: Pay your bills on time and in full whenever possible
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