Is Making Multiple Payments on Credit Cards Bad?
- Most credit card issuers let you make as many card payments as you want every month.
- All payments made during a billing cycle apply only to that billing cycle.
- You usually need to pay more than the minimum to make progress on paying down your balance.
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Making a plan to pay off your credit card debt could be the first step to getting rid of that debt for good. Part of making a plan is figuring out how much to pay, but another part may also include figuring out when to pay.
You need to make at least the minimum payment before the due date each billing cycle to keep your issuers happy. However, you don't necessarily need to pay your bill all at once.
If you can afford to pay your monthly bill in one shot, that's perfectly fine. But you could also split your payments up over the month if that works better for your situation. Here's what happens if you make more than one credit card payment in a billing period.
What Happens When You Make Extra Credit Card Payments?
Your credit card bill will list the minimum required payment. That's the minimum you need to pay to keep your account in good standing. You can meet the minimum in one payment or more, as long as you do so before the due date.
Often, most or all of your minimum payment goes to interest fees. If you're only covering interest, your principal balance won't go down even though you're making payments. So, you typically need to pay more than your minimum to start paying down your credit card debt.
Anything extra you pay beyond the minimum payment goes to your debt. This is true if you make one large payment or several smaller ones. As long as you exceed the minimum payment—and don't charge anything new—you'll make at least some progress on your balance.
You can't pre-pay next month's credit card bill
All of the payments you make in a given billing cycle apply to that billing cycle, not the next one. In other words, you can't pre-pay next month's bill by making an extra payment this month.
For example, if you pay more than your minimum in January, anything extra will be applied to your balances in January. It won't roll over to cover your bill for February. You'll still need to make at least the minimum payment in February to keep your account in good standing.
When You Should Make Multiple Card Payments
Since issuers generally don't care how many payments you make each month, you could use this feature to your benefit. Consider these cases when making multiple payments could be useful.
To better fit your budget or pay cycle
When you have to make your budget stretch, it can be hard to find a large sum for a big credit card payment each month. Breaking it up into smaller payments each week or two could make it easier to budget around.
This could be particularly true if you want to match your payments to your pay cycle. Say you get paid every week, for instance. You could set up automatic payments to your credit card each time you get paid. This could automate your debt repayment and make it easier to budget for each week.
To minimize your utilization for a credit check
Another common reason you might make an extra credit card payment would be to lower your utilization before you apply for new credit. Your credit utilization is how much of your available credit you're using. It's found by dividing your balance by your credit limit.
Having high utilization could hurt your credit score. Paying down your balance could lower your utilization and reverse some of that damage. This could help if you're about to apply for new credit and want your credit score in the best possible shape.
Credit card issuers typically report your card balance once a month, often when your statement closes. A second card payment right before the end of your statement cycle could help your balance be as low as possible when it's reported to the credit bureaus.
Freedom Debt Relief isn't a credit repair organization and doesn't provide or offer services or advice to repair, modify, or improve your credit.
Check Your Accounts Regularly, No Matter What
No matter how many payments you're making, it's important to keep an eye on your credit card accounts throughout the month. Make sure you recognize every transaction that shows up and that your balances look as expected.
Report any purchases you don't recognize to your issuer right away. Spotting unauthorized purchases may also be a sign that you should check your credit reports for other signs of identity theft or fraud.
Aim to Pay More Than the Minimum, However You Can
At the end of the day, it doesn't really matter whether you make one payment or multiple payments—-as long as you're making at least the minimum payment before the due date. If you want to make progress on paying down your debt, however, you're going to need to go beyond the minimum.
If making multiple payments in a billing cycle helps you pay down your debt, that's great! It's about finding a strategy that fits your budget and helps you keep making progress.
Need more help on your way to becoming debt-free? Freedom Debt Relief offers professional debt help, and we work with people just like you.
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 do I avoid the minimum payment trap?
Pay a bit more each month! And use tax rebates, bonuses and other windfalls to knock lump sums off your credit card debt.
If you take the minimum payment you made during the first billing period after your purchase and then pay that same sum consistently each month, you could halve both the interest you pay and the time you’re indebted.
How much credit card debt is normal?
What’s normal for one person might be troubling for another. The best amount of credit card debt is the amount that you can afford to pay off when you get the bill. A person’s total financial picture, including salary, financial goals, and other debts, could give a better sense of what’s manageable.
How long does it take to pay off credit card debt?
It depends on how much credit card debt you have and how much you can afford to pay each month. Most payoff strategies, including bankruptcy, debt management plans, and debt resolution, can take three to five years to complete.
No matter what, the more you pay each month, the faster you’ll be out of credit card debt.