Capital One Explains Minimum Balance Calculation Changes

Capital One wrote to explain why they were changing lowering the minimum balance calculations, as we posted about yesterday. Pam Girardo in Capital One External Communications wrote:

Last March, Capital One’s credit card operations became regulated by the Office of the Comptroller of the Currency (OCC) in an effort to consolidate our major subsidiaries under the same Regulator. Prior to March, we were regulated by the Federal Reserve or the Office of Thrift Supervision. The OCC has different minimum payment calculation requirements than the Fed and OTS.

I hope this context is helpful.

Got it. Remember folks, if you can’t pay off your balance in full every month, please make more than the minimum payments otherwise you’ll be debt forever and ever. This chart shows what I’m talking about.

PREVIOUSLY: Capital One Changes Minimum Balance Calculations (Photo: taberandrew)


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  1. bikeoid says:

    I’m still confused – from this admittedly old article, the OCC rules require the higher minimum payment: [] :

    “Under rules instituted by the Office of the Comptroller of the Currency (OCC) in 2003 and phased in through the end of 2005, the minimum amount required for paying a credit card balance each month is increasing from 2 percent to 4 percent or more, depending on the bank that issued the card.”

    • KithKanan says:


      A couple points:

      (1) Higher than the old OCC minimum payment. That still might be lower than the minimum payment required by the regulators for other types of deposit institutions.
      The old OCC-required minimum payment was 2% of outstanding balance, while the old capital one minimum payment was 3% of outstanding balance.

      (2) The new minimum payment (1% of previous balance + new interest + any new fees) IS higher than the old payment (3% of outstanding balance) for any card with an interest rate of around 24% or higher.

      • KithKanan says:

        Just a quick correction. The OCC might not have required a specific minimum payment for credit cards before those 2005 regulations. Most banks had minimum payments around 2%, which would have taken 30 years to payoff. The current minimum payment is designed to require around 10 years.

  2. Samets says:

    Capitol One is great for:

    1. Pulling all 3 CRA’s for 1 credit card
    2. Sticking you in a category that never gives a CLI
    3. Out of country purchases. 0% added as a transaction fee

    Too bad there’s more bad than good…

  3. Ein2015 says:

    Capital One responds to Consumerist.

    I like it! :)

    Thanks, Capital One! (It’s what’s in my wallet. Used their zero-interest bit to switch my debt over and pay it down. Woohoo!)

  4. vastrightwing says:

    You are in trouble (financially) if you are using your credit card as credit and not using it as a charge card. The latter being one where you pay the entire balance off at the end of the month. No need to explain that the cards are designed to maximize profit for the issuing bank and to suck as much money from you as it can. They will change the rules (in their favor) if they aren’t making enough money from you. Just be aware.

    • xman31 says:

      @vastrightwing: Eh, I have a card that has a 0% interest rate for under a certain balance. I bought something months ago, have been paying the minimum, interest-free, and they haven’t done anything. in fact, they’re losing money on me (the card itself, providing paper statements, etc.)