In the United States, getting a credit card is almost a requirement.
While you might prefer to use a debit card in order to better manage your finances, opening a credit card allows one to diversify their credit portfolio and, thus, improve their credit score. With a strong credit score, you can score more favorable rates on loans and may be cleared to borrow more at once.
That said, establishing a strong credit portfolio can be a long, painful process. Plus, if you make enough mistakes to significantly lower your credit score, it can have pretty severe consequences. In fact, one 2018 survey found that nearly half of millennials believe they’re being held back by their credit score.
Even if someone thinks they have the whole credit system figured out, they can make mistakes that can cause major problems. One TikToker recently learned this the hard way—and now, she’s sharing her story so that others can learn.
What Happened With This Woman’s Credit Card?
In a video with over 2.2 million views, TikTok user Georgia Cilly (@georgiamcilley) says a recent credit card discovery left her in tears.
According to the TikToker, she got a credit card several months ago. After several months of usage and payments, she took a closer look at her bill—and discovered she was getting massive interest charges.
“I’m not a huge spender, and I’m pretty good with money—or so I thought,” she says. “And I see all these interest charges, and I’m like, ‘What the hell? Why have I been being charged all these interest charges if I pay every month?’”
The problem? Cilly was unknowingly only making the minimum payment.
“I thought… ‘Is that not logical, that the minimum—you just have to pay the minimum every month?’” she asks. “So, I’ve only been paying the minimum every month, and I have had the amount that I could pay the whole thing.”
Consequently, she found she was accruing $50 to $70 in interest every month.
“Then my mom was explaining to me, ‘Well, Georgia, that’s how credit card companies make money off of stuff like this,’” she recalls. “But I thought they just made money off of when people didn’t pay at all.”
This Misunderstanding Is Pretty Common
While Cilly may feel embarrassed about her realization, she’s certainly not alone in misunderstanding minimum payments.
Studies show that between a quarter and half of consumers misunderstand minimum payments at some level. Some cannot correctly define it, while others believe paying only the minimum has little or no impact on one’s credit score.
To be clear, a minimum payment is the smallest amount you can pay on your credit card and still be in good standing with your card issuer.
While this may allow one to break up a large payment or save some money in a pinch, it can also have severe consequences. As Cilly discovered, one paying only the minimum will still accrue interest that they will later have to pay off.
By law, bills must show how long it would take to pay off the credit card balance if one only makes minimum payments. According to Experian, if one pays only the minimum on a balance of $3,000, they will not pay off their bill for almost five years. In that time, they will accrue—and have to pay off—almost $2,000 in interest.
Generally speaking, this is why financial experts recommend knowing the terms of a credit card before signing up. Additionally, it’s recommended to pay the balance in full after every billing cycle.
However, that doesn’t mean that credit card holders actually do this. Recent studies suggest over 10% of credit card users only made minimum payments in the last quarter of 2024.
The TikToker Follows Up
In the comments under her video, users chided the TikToker for her apparent ignorance.
“Did you think this was just free money?” asked a user.
“So you think a credit card is like a $65 monthly subscription that gives you unlimited spending,” offered another.
The TikToker later posted a follow-up responding to comments like these. In this video, Cilly says she’s simply happy to share that she’s now learned her lesson.
“I obviously didn’t think it was free money,” she explains. “I just was planning on paying it later on, and I had the money to do it.”
She adds that she got the credit card in order to take advantage of travel benefits.
Thankfully, she says that a call to the bank improved her situation.
“I called the bank yesterday and explained to them my situation, and they were so nice; they gave me, like, a hundred dollars back,” she says. “So, I’m still down a few hundred dollars, but it’s really not the end of the world.”
“I’m never, ever gonna be in credit card debt ever again; I’m never gonna have an interest charge, because I learned my lesson, and I’m just gonna pay in full every single month,” she concludes.
More Thoughts From The TikToker
In an email, Cilly told BroBible that the experience has not put her off using credit cards. However, she said, “I’m just going to be a lot more careful now.”
“I have already paid off that credit card so that I’m starting fresh (sort of),” she wrote. “Going forward, I will honestly probably pay my credit card off at least every week at this point.”
She also elaborated on what exactly happened with her bank.
“When I called the bank, they were extremely nice and told me that this is a lot more common than people think,” she detailed. “I spoke to a customer service rep who explained to me the importance of paying the statement balance each month. He then put me on with a manager who was kind enough to give me back about $120.”
“As frustrated as I am with the situation, I learned a really good lesson,” she summarized. “Yes, it cost me a couple hundred dollars, but now I will never be in the situation again!”
@georgiamcilley I am so upset
BroBible reached out to McIlly via email.