How to Save Money - Time Your Credit Card Payment

If you carry a balance on your credit card, make a payment as soon as a new bill is generated online. Make the payment early and reduce the average daily balance before more interest has a chance to compound as it will if you wait to pay on the due date. The minimum payment due will be reduced faster making it easier to add extra dollars. Use every resource available to maximize your payment.

Instructions

Difficulty: Easy

Things You’ll Need:

• Access to the internet
• Credit card website
• Online bill pay account with your bank or credit union

1. Set up an online bill pay account and enter your credit card’s billing information. Periodically check the mailing address of the bill to be sure it has not changed to ensure prompt credit of your payment.
2. Register at the credit card’s website so that you have access to your bill and know when a new bill is generated. E-Bills are another way to be notified.
3. As soon as the new bill appears, pay the minimum amount promptly through your online bill pay. Rev up the payment and add the stated interest on the bill to the minimum payment, if possible. Ideally, the payment will be credited the same day or the next.
4. In lieu of an online bill pay and if the card was issued from a bank, go to the bank and make the payment. Be aware of the posting cutoff time. Keep your receipt.

Tips & Warnings

• The average daily balance and the periodic rate applied to the average daily balance can be found on the back of your credit card bill.
• Be sure your credit card accepts online bill payments and be aware of any exceptions.