Is Making Multiple Payments on Credit Cards Bad?

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.