{"id":358045,"date":"2021-03-11T11:26:24","date_gmt":"2021-03-11T18:26:24","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=358045"},"modified":"2022-05-04T17:26:22","modified_gmt":"2022-05-04T23:26:22","slug":"how-to-pay-card-bill","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/credit-101\/how-to-pay-card-bill\/","title":{"rendered":"How to pay your credit card bill: best practices + tips"},"content":{"rendered":"\n
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Disclosure regarding our editorial content standards<\/em><\/a>.<\/em><\/p>\n\n\n\n

When you get down to it, paying off your credit card bill is pretty straightforward: pay at least the minimum amount each month to be in the clear, and pay off the amount in full to avoid interest payments. Simple, right? Sure, but like many other financial topics<\/a>, there are nuances to keep in mind. <\/p>\n\n\n\n

It\u2019s also important to understand how to pay your credit card bill to avoid interest fees and establish a positive credit history. There are lots of dates and amounts listed on credit card bills to keep track of. As a borrower, you have a responsibility to pay on time. <\/p>\n\n\n\n

We\u2019ll help you understand exactly how to pay off your credit card, but first, it\u2019s essential to understand what\u2019s on the statement you receive each month. Names or formatting will differ based on the issuer, but each statement will contain the same basics:<\/p>\n\n\n\n

  1. Statement balance:<\/strong> This is the amount due for this statement period, and it\u2019s sometimes called the new balance or outstanding balance.<\/li>
  2. Minimum payment due: <\/strong>This is the lowest amount you can pay before the due date. It\u2019s either a fixed amount or a percentage of the balance based on the credit card terms.<\/li>
  3. Payment due date:<\/strong> If the minimum payment isn\u2019t made by this listed date, you will be charged a late fee.<\/li>
  4. Minimum payment warning:<\/strong> This shows you how long it would take you to pay off your current balance if you only made minimum payments. It also shows what the interest would look like.<\/li>
  5. Account summary:<\/strong> This shows the overall details of how the current balance was calculated\u2014it starts with the previous month\u2019s balance, subtracts recent payments and credits and then adds purchases, interest charges and fees.<\/li><\/ol>\n\n\n\n

    You\u2019ll also see all the payments and credits you\u2019ve made that will be factored into your current balance, new purchases made during the billing period, fees, interest charges and any additional rewards or perks with your given card. From there, you can decide how to pay.<\/p>\n\n\n\n

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    There are various ways to pay down your credit card bill every month:<\/p>\n\n\n\n

    1. Online bill pay: <\/strong>Most credit card lenders will allow you to link your checking account to complete your monthly payments.<\/li>
    2. Money transfer: <\/strong>Some lenders will allow you to wire transfer money to pay your bill.<\/li>
    3. Cash or check: <\/strong>You might be able to pay your credit card bill in person at a local bank or credit union branch<\/a>, or you may be able to mail a check.<\/li>
    4. ACH check: <\/strong>You\u2019ll need to provide your credit card issuer with your bank\u2019s account and routing numbers\u2014you can do this online or over the phone.<\/li><\/ol>\n\n\n\n

      Any of the above payment methods are completely viable options\u2014it\u2019s all about what your credit card issuer accepts and what works best for you. Once you decide on a payment method, stick to it: put a recurring reminder in your calendar, set up automatic payments or set up reminders on your mobile banking app. Next, you just need to decide when to pay your bill.<\/p>\n\n\n\n

      When to pay your credit card bill<\/h2>\n\n\n\n

      This is an easy one, right? By the deadline! Aside from that obvious answer, you do have a little bit of leeway in terms of when you pay off your credit card bill. <\/p>\n\n\n\n

      First and foremost, we highly recommend that you pay the full statement by the payment due date. This is valuable for a few reasons: one, it has a positive impact on your credit, and two, it notifies lenders that you can borrow money responsibly. It\u2019s important to allow time for your payment to process, and it can be helpful to pay a few days before the statement closing date for this reason (more on paying early later). <\/p>\n\n\n\n

      Credit card issuers differ when it comes to how long they take to post a payment to your account, which means that the time from you sending a payment to the time your account says \u201cpaid\u201d can vary. It\u2019s worth checking with your specific bank to verify what counts as an on-time payment and how long it takes for payments to be posted to your account. <\/p>\n\n\n\n

      For example, if you prefer to mail in a check, will your payment be considered on time if the letter is postmarked by the due date, or does the provider need to have the check in hand by the posted due date? These are the questions to ask before signing up for a specific card.<\/p>\n\n\n\n

      However, it\u2019s not required that you pay the entire outstanding balance right away. Typically\u2014but not always\u2014credit cards have a grace period<\/a>, which is the time between your billing cycle\u2019s completion and your statement\u2019s due date. During this period, you will not accrue interest on purchases made during the previous billing cycle. This is a great time for multiple payments, which we\u2019ll cover below.<\/p>\n\n\n\n

      If you can\u2019t afford to pay the full statement balance, we recommend at least paying the minimum payment by the same due date. This can help you keep a handle on your credit card debt and avoid any expensive late fees. Making minimum payments is a good option if you use a card with a zero percent intro APR (annual percentage rate) offer and take advantage of the zero percent interest and balance transfers. While you\u2019ll still need to make the minimum payments each month to avoid late fees, you\u2019ll have more time before the bank charges interest.<\/p>\n\n\n\n