Simple Strategies for Managing Credit Card Payments

Credit cards can be a convenient way to pay and track your spending habits. You can purchase whatever you need with just a tap or a swipe. And, if you’re hit with a large, unexpected expense, paying with a credit card can allow you to spread out repayments. The key part of successfully managing your credit card and not maxing out your credit limit is your repayment strategy. Follow these tips to manage your credit card’s monthly payments with ease. 

Schedule Your Payments

Paying your credit card on time every month feels great, has a positive effect on your credit score and saves you from paying late fees. Most banks and credit unions have payment methods that will allow cardholders to set up automatic recurring payments through autopay. That means you can set up your account to automatically pay the same amount at the same time each month and avoid late payments.

Pay More Than the Minimum

You can save on high interest rates by paying off your whole credit card balance each month. But what if you’re unable to pay the whole balance?

If you need to spread out your payments on your credit card account, the next best option is to pay more than the minimum payment shown on your statement each month. The more you pay each month, the faster you’ll reduce your credit card debt and the less interest you’ll pay. Not paying the minimum amount can be detrimental to your credit report and credit history and is not the way to go about building credit.

Change Your Due Date

You probably find it easier to pay your credit card bill on time if the due date falls just after you get paid. 

Most credit card issuers will allow you to switch your regular due date to a more convenient time in the month. We suggest setting your due date to a day or two after your payday. That way, you’ll be more likely to avoid late fees and extra interest charges. 

Consider Staggering When You Pay Your Bills

Your credit card bill likely isn’t your only financial obligation. Other bills like housing payments, insurance, phone, streaming services and other expenses are also due on a regular schedule, and if not paid on time can have a snowball effect. Some people like to pay everything at the same time so they only need to remember to pay bills once a month, while others find that staggering payments means their bank account doesn’t take a big hit all at once. The important thing is to time payments to a schedule that makes it easiest on your budget.