Should You Make Multiple Credit Card Payments in a Month?
- Any payment beyond the minimum payment in a billing cycle goes toward your highest-interest balance.
- All credit card payments made in a billing cycle apply to that billing cycle only.
- Making multiple monthly card payments can be useful for paying down debt and/or keeping your utilization low.
We all approach paying off debt in our own ways. No single method is going to work for every person, and every budget is unique.
There isn't one blanket answer to how many card payments you should make each month. Some folks are fine making a single payment, while others may benefit from making two to four payments a month.
To help you figure it out, let's look at what happens when you make credit card payments. Then we'll explore who might benefit from this strategy.
What Happens When You Make Credit Card Payments?
Credit cards operate on a statement or billing cycle, not by the calendar month. You accrue purchases during the statement period, then get a bill for that balance at the end of the statement period.
The billing period is between when your statement closes and when your payment is due. When you get your bill, you can:
Pay the minimum set by the bank.
Pay the full statement balance.
Pay some other amount.
You need to make at least the minimum payment before your due date to stay in good standing with the bank. That payment can be allocated to any part of your card balance, including past-due amounts or fees, at the issuer's discretion.
Any amount you pay over the minimum payment during one billing cycle must be applied to the balance with the highest interest rate. For example, if you have a card with a balance transfer balance at 20% APR and new purchases at 0% APR, the excess payment would go toward the balance transfer balance first.
You can't prepay your credit card bill
All payments you make during a single billing cycle apply to that billing cycle. They won't be applied to any future cycles.
In other words, you can't prepay multiple months' worth of credit card payments. You'll still need to make at least the minimum payment each month going forward.
When You Should Consider Making Multiple Payments
In most cases, if you can afford to pay your balance in full with a single card payment each month, there isn't much reason to switch to making multiple payments. Stick with what's working for you already.
However, there are a few cases in which multiple credit card payments could make sense. Here are some examples.
If you want to keep your utilization low
Credit utilization is how much of your available credit limit you're using. If you have a credit card with a $5,000 credit limit and a $1,000 balance, it has a utilization of $1,000 / $5,000 = 0.2 = 20%.
High utilization could hurt your credit score; the general rule of thumb is to aim for a utilization between 1% and 30%. This can be challenging if you have a month that requires a lot of spending and/or your card has a low credit limit.
Making multiple payments throughout the month may help keep your balance low and your utilization from getting too high.
If you're trying to pay down debt
Multiple card payments in a billing cycle can be a big benefit if you're working to pay down credit card debt. This is particularly true if you get paid on a weekly or bi-weekly schedule. Here's why:
Smaller payments can be easier on the budget. A smaller card payment each paycheck can be easier to manage than a much larger payment once a month.
Interest fees are based on your average daily balance. If you can pay down your balance each payday, that average will go down. This can reduce how much interest you accrue. Fewer interest fees can help you pay down debt faster.
No Matter When You Pay, Log In Multiple Times a Month
Whether you choose to make one payment or several, you should definitely be logging into your credit card account more than once a month. There are a few reasons to do so:
You won't be caught by surprise by a large credit card bill. If you regularly check your balance, you'll know exactly where you stand before the statement period ends and your bill shows up. This gives you time to adjust your spending if necessary.
You can spot fraud or identity theft right away. Going through all of your transactions to see if they're accurate and belong to you is a vital part of good credit card health. Immediately report any transactions you didn't authorize so you don't end up on the hook for someone else's fraudulent purchases.
Everyone handles their finances their own way. If making multiple payments helps you manage your credit card bills and avoid needing to seek debt relief down the line, then it's the right strategy. If you're happy making one payment a month, then you can stick with that, instead.
Author Information
Written by
Brittney Myers
Brittney is a personal finance expert and credit card collector who believes financial education is the key to success. Her advice on how to make smarter financial decisions has been featured by major publications and read by millions.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
How often is credit utilization reported?
Credit card companies typically report every month, based on your card’s billing cycle. However, not every creditor reports to all three credit bureaus or even every month. So, if you make a big payment, your credit utilization might not drop immediately. If you’re looking forward to your utilization going down, ask your creditor when they will report your balance.
Should I make minimum payments?
In one sense, the answer is yes. If you fail to make a minimum payment, you’ll likely incur late fees and perhaps other penalties.
But, in another sense, the answer’s no. Because making only the minimum payment is a very slow and costly way to reduce your credit card debt. So, it’s much better to pay down at least a bit more than the minimum each month.
Why are minimum credit card payments so low?
Credit card companies do not provide credit cards, especially those with cash back and other rewards, out of the goodness of their hearts. They do it to earn money. And they set minimum payments so you have to pay something each month, and so you'll eventually pay off your balances.
But the minimum payment can result in high interest cost and keep you in debt for decades. If you start out making a minimum payment, continue to make at least that payment. Your statement will show a lower minimum payment when your balance drops. But if you keep making the higher payment, you'll pay less interest and zero your balance sooner.