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Paying your credit card bill when the monthly statement comes is a pillar of responsible credit card use. But youre not limited to a single monthly payment. Making smaller payments more often has benefits you may not realize. And all major credit card issuers allow you to make mid-cycle payments.
Here are some justifications for thinking about paying your credit card bills in smaller, more frequent installments before the due date, as well as one reason not to worry.
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Reducing the interest you pay
If you generally carry a credit card balance from month to month, you can lower your total interest costs by making several payments throughout each billing cycle. That’s because interest accrues based on your average daily balance during the billing period. The lower you can keep the balance day by day, the less interest you pay.
That’s true even if you pay the same dollar amount over the month. Therefore, paying $200 three times a month instead of $600 once a month results in a lower interest rate.
Check out these three excellent reasons to pay your credit card bill in full to see how this works mathematically.
Interest is usually very costly and can negate the benefits of credit card rewards like travel miles and cash back.
Matching payments to paychecks
Paying in small chunks as money comes available might be a better fit for your household budget. A typical illustration would be paying off your credit card each week or every two weeks after receiving your paycheck from work.
That way, you get the money out of your possession so you’re not tempted to spend it elsewhere.
You can also move the credit card payment due date to a date that better fits your home’s cash flow with many credit cards.
In a similar vein, any windfall you receive on occasion, such as a gift card or an income tax refund, may be applied straight to your credit card debt.
Pay Your Credit Card Bill on 2 Specific Days to Increase Your Credit Score
FAQ
Is it good to pay your credit card twice a month?
Can I pay credit card bill 2 times in a month?
Does paying twice a month increase credit score?
Can I make two payments on my credit card before due date?
Can you pay a credit card twice a month?
Yes, you can make as many payments on your credit card as you’d like every month. But the most important question is, “Is paying a credit card twice a month beneficial?” And the answer to that, for the most part, is also “yes.” The key is to ensure that the payments you make at least total the minimum monthly payment by your due date.
Should I make multiple credit card payments per month?
There’s only one situation where making multiple credit card payments per month isn’t beneficial. This is when you have enough money to pay off the entire credit card statement balance in one shot. In this case, plan to make one full-balance payment between your billing cycle closing date and the bill due date.
Should I make more than one credit card payment?
While improving your credit score might be the primary goal of making multiple credit card payments, there’s another benefit. Depending on how your credit card issuer calculates your finance charge, you may save interest by sending more than one credit card payment throughout the month.
How often should I pay my credit card?
Whether you pay your credit card in full, make only the minimum payment, or something in between, you probably send just one payment to your credit card issuer each month. No matter how much you choose to pay, as long as you make your payment on time (and pay at least the minimum), you’re doing exactly what your credit card issuer requires.