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Using a credit card for shopping and other purchases is a piece of cake, but we all know that the bill for your wares will eventually come due. That said, a credit card can still be a valuable tool for your wallet, and for more reasons than one. Not only can a credit card help you build credit you’ll need in the future, but using plastic for purchases can help you earn rewards while benefiting from consumer protections along the way.
But, how do you pay your credit card bill? Plus, when do you pay it? And, should you pay your entire credit card balance all at once?
These are excellent questions to ask, and we have all the answers below. Read on to learn how to pay your credit card bill and when to pay if you want to avoid interest charges and other fees.
The most common ways to pay your credit card bill include:
Most credit card companies have an online platform that lets you log in and pay from anywhere you have an internet connection. You can link your bank account information to the online platform so the credit card company can easily withdraw your payments directly from your bank account.
Some credit card issuers offer you the option to make credit card payments over the phone. They usually ask for your bank account information, including your account number and routing number. From there, the card company can automatically withdraw the amount you decide to put toward your credit card payment that month.
If you have a credit card from a financial institution that has a local branch in your area, you can also show up in person and make your credit card payment. For example, you could head to a Chase branch to pay your Chase credit card bill in cash.
If you want to pay by check, you can make a payment toward your credit card bill in person or by mail. If you plan to mail your payment, however, you’ll want to make sure you send it early so it can arrive well before your payment due date. Otherwise, you could be charged interest or late fees.
Your best option for paying your credit card bill depends on the methods your credit card company makes available to you.
However, one of the easiest ways to pay your credit card bill on time each month is to set up automatic payments using your bank’s online platform.
You can typically set up automatic payments based on the amount stipulated in your eBill, a paperless form of a bill that is delivered directly to your email or message center in the card company’s online platform.
If you aren’t sure how to set this up, it’s best to contact your bank for assistance.
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Unfortunately, you cannot pay your credit card bill directly with another credit card.
However, if you’re short on funds to pay your credit card bill this month, there may be another viable workaround, but it will cost you. You could use one credit card to take out a cash advance at an ATM, and then use the cash to make a payment on your other credit card.
We say you could do this, but that doesn’t mean you should. It’s important to remember that interest rates for cash advances are incredibly costly and that you’ll pay an upfront cash advance fee (usually 5%) as well. Also, cash advances don’t have a grace period so you’ll be charged interest on the cash advance amount starting from day one.
By now we have established how you can pay your credit card bill, but there are many nuances and tricks to leveraging your credit by paying at the right time.
Whether you want to maximize your grace period or avoid interest and other fees, it’s important to know when to pay your bill for the best results.
Here are some of our tips for maintaining healthy credit and good payment habits:
According to myFICO.com, your payment history is the most important factor and makes up 35% of your FICO credit score.
This means that on-time payments on your card can have a dramatic positive impact on your credit score, but late payments can have the opposite dramatic effect and damage your credit score in a hurry.
In addition to keeping your credit card payments up-to-date, you should also strive to pay your credit card balance in full each month. This can help you avoid paying credit card interest altogether, while also helping you avoid long-term credit card debt.
You can also raise your score if you pay your credit card bill earlier in the month.
Apart from helping to ensure you pay your bill on time, this can also help you keep your credit utilization rate (i.e. the amount of available credit you’re using) lower. Your credit utilization rate is another major factor in determining your credit score.
Always make sure you pay your credit card bill before the card issuer reports your balance to the three credit bureaus.
Credit card interest accrues on a monthly basis, so waiting until your card’s due date to make a payment will leave you paying more interest on your debt than you have to.
If you are carrying a balance on your credit card each month and you want to save some money on interest, pay as much as you can toward your balance as early in the billing cycle as you can. This will lower your interest and save you money.
If you’re worried you’ll forget about a credit card payment or you just want more peace of mind, you can also set up your credit card on autopay. Setting up automatic payments ensures at least the minimum payment on your card is made whether you remember or not.
Some credit card companies let you move your credit card due date to another date based on your preferences. Moving your due date can help you get your due date to a day of the month that works best for your finances, such as your regular payday.
You can also track your spending much easier if you use a credit card for the bulk of your everyday purchases and bills. Tracking your spending can help you figure out where your money is going each month, and whether you are spending too much in discretionary categories like groceries, dining out, or entertainment.
Using a credit card calculator can also be smart if you need to find out information about your credit card debt, such as how much interest you are paying or how long it will take you to become debt-free. The best credit card calculators can also help you figure out how much money you would save if you paid more than the minimum payment on your card each month.
Using a credit card for purchases instead of cash makes it easy to see an overview of your regular spending in any given month. We recommend reviewing your account statements regularly so you can spot fraud on your accounts early on and potentially spot early signs of potential identity theft.
The best date to pay your credit card bill is always going to be before or on your due date.
However, there are some interesting points to paying during different parts of your billing cycle. Let’s take a look at the different dates you can spot each month relating to your credit card bill.
Your credit card statement date is the date your formal credit card statement is generated by the credit card company in any given month. If you have an app for your credit card, you can typically see your monthly balance before a statement is issued.
If you go ahead and pay your bill in full on or before the statement date, you can avoid credit card interest and ensure your credit utilization ratio stays on the low end.
Your due date is the last date you have to pay your bill before interest is added to the account. You can pay your credit card bill on your exact due date and still avoid interest charges with this strategy as long as you pay your entire credit card balance on this date.
Your reporting date is the date your card issuer reports your balance to the credit bureaus.
When your balance is reported to the credit bureau it can ding your credit score and appear on your credit report if you have left bills unpaid or partially paid. Therefore it’s important to pay your balances down before they are reported to the credit bureau.
Most banks report to the credit bureaus after the due date. Sometimes your reporting date may fall on your statement date, but this isn’t always the case. You are unlikely to know the exact date your card issuer reports your balances, so it’s best to always pay as soon as possible.
Your credit card balance is the amount you owe on your credit card at any given time, and the ultimate goal of anyone with a credit card is to pay off their balance as soon as possible.
That said, each person’s financial situation is different. When you should pay your entire balance depends on what you’re trying to accomplish with credit, and whether you have the cash to pay your balance off in full.
In some cases, carrying a small balance can help build credit, but we don’t recommend this.
Generally speaking, you should strive to pay off your credit card balance each month on or after your statement closing date.
By not carrying a credit card balance from one billing period to the next, you can avoid paying credit card interest and minimize your chances of racking up long-term debt.
If you make your credit card bill payment beyond its due date, you likely won’t have any negative consequences right off the bat. This is because many card issuers don’t report late payments until they’re at least 15 or 30 days late.
If you accidentally make your payment a few days late and it only happens once, you may be charged a late fee but without seeing any negative impact on your credit score.
That said, the consequences can be more substantial. Many credit card companies will charge you a late fee when you pay your bill late, and they will also hit you with a higher penalty APR.
If you pay your bill late enough, your late payment will be reported to the credit bureaus and become a negative remark on your credit history. This can cause your score to take an immediate hit, and it could take months or years to repair it.
Yes, it’s possible to pay your credit card bill multiple times per month without a negative impact on your credit score.
If you’re a cardholder who is worried about late bills or racking up credit card debt, it can make sense to pay your credit card bill several times per month. This is also easy to accomplish since most companies let you make regular payments toward your card balance online.
Should you pay your full statement balance? Or, should you opt to make just the minimum payment on your card?
Here are some pros and cons that come with each of these strategies:
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A credit card balance is the amount you owe on your credit card at any given time, which is made up of your purchases and other transactions. If you went shopping with a new credit card and used it to buy $550 worth of merchandise, for example, your new credit card balance would be $550 as well. The balance on a credit card is a running balance that can be carried over from month to month.
You should only carry a balance on your card in special circumstances, including instances where you get an interest-free period with a new credit card offer. You can also choose to carry a balance on your card if cash flow is a problem, although interest charges can make doing this very costly over the long run.
Credit card companies and lenders report to the credit bureaus — Experian, Equifax, and TransUnion — once per billing cycle. However, the time during the billing cycle they report can vary by company. You can always contact your card issuer to ask when they report.
The best way to pay your credit card bill is online using your bank account as it is quick and easy and can also be automated to ensure you pay the full amount, on time, every month. Fortunately, making an online payment is a breeze provided your credit card company has eBill functionality.
You can pay your credit card bill directly from your bank account if you use your credit card company’s portal to set up your payment. This often includes a feature to set up automatic payments so you can rest easy each month. You can also typically pay your credit card bill over the phone, in person at most branches, or with a regular check through the traditional mail.
Paying online is often the fastest way to pay a credit card bill. However, showing up at your bank and paying in person can also get the job done quickly if you are unsure about online payments.
Paying your credit card bill early definitely comes with benefits. For example, paying early means you won’t accidentally forget your due date and wind up making a late payment. Paying right away also ensures you don’t spend the money on other expenses and bills. Paying early also keeps your credit utilization ratio low.
There is no specific date before your statement that is best to pay your credit card balance. You can pay your credit card on any date of the month on or before your statement. However, it makes sense to pay your bill starting as soon as the day your statement closes or anytime before to ensure you pay on time and keep your credit utilization ratio low.
If you have trouble paying your credit card or if you want to pay all your bills on a specific day of the month, changing your credit card bill payment date can be a smart move as it allows you to ensure you have been paid before your bill is due. Fortunately, many credit card issuers offer this option, and you may even be able to request a new payment due date online.
The golden rule is to always pay your credit card bill on time. Your payment history is the most important determinant of your credit score and overall credit health. By paying your bills on time, you can score well in this category and boost your credit rating over time.
Paying your credit card bill early isn’t bad at all. In fact, paying your bills early helps you ensure your payment isn’t late, and it can help you pay less in credit card interest over time.
Pay your credit card bill early whenever possible. This is a good option if you have the cash on hand and you want the peace of mind that comes with knowing you are keeping your bills up-to-date.
Yes, you can pay your credit card bill any time you want, even right after you make a charge to your account. However, it’s worth noting that some card issuers won’t let you make an overpayment for more than your credit card balance.
Holly D. Johnson is an award-winning personal finance writer who covers topics like insurance, investing, credit and family finance. As a leading voice in the travel and loyalty space, Johnson has traveled with her family to more than 50 countries over the last decade.
The author has also written extensively on the power of household budgeting, and she even co-authored a book on the topic. Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love was originally published in 2017, and it teaches families how to use zero-sum budgeting to reach their financial goals. She is also the co-owner and founder of the family finance and travel website, ClubThrifty.com.
Johnson’s 10+ years of writing have focused on helping families make important financial decisions at each stage of their lives. The author also applies the financial principles she teaches to her own life, and she is currently on track to retire in her late 40’s with her partner. She currently lives in Central Indiana with her husband and children, and she is a regular contributor for Bankrate, CNN, Forbes, U.S. News and World Report Travel and many other notable publications.
* Opinions expressed here are those of the LA Times Compare Cards Team and have not been reviewed or approved by any advertiser or entities included within this content. See our editorial policy for more details.
All products or services are presented in this content without warranty. The information, including card details such as rates and fees, is accurate at the time of publish. Please visit each bank's website directly for the most current information.
