How often do you make payments on your Credit Cards?

I don't like surprises, so prior to YNAB I paid my credit cad balance off 2-3 times a month just so that my checking account wouldn't seem unusually inflated. Now that I've started using YNAB the credit card payment categories have been confusing me. Is it better to just pay once a month and let the budget do the work? 

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  • As long as you don't miss a payment deadline, it just doesn't matter. The money to pay off the card is already set aside in the card payment category, so you can't accidentally spend it on something else or get an unrealistic view of your budget.

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  • There are no surprises when you use YNAB properly. All CC purchases were budgeted for and the money is in your accounts waiting to pay the full bill. I just set up automatic payments that pay the statement balance in full a couple days before the due date. The one caveat is that you do have to make sure that your payment account has enough money in it to cover your payment. If you keep a healthy balance in your checking account, it shouldn’t be an issue.

     

    If you’re a PIF CC user and don’t ever pay interest on your balance, you may want to think about changing your CC accounts to checking accounts. This get’s rid of the CC payment category middle man. In the PIF case, you don’t need YNAB to tell you what to pay. You just pay your statement balance (or more if you want).

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  • I am a PIF CC user so I set my CC accounts up as checking accounts, this makes YNAB so much simpler.  I pay the current balance daily as I like to treat them like they are debit cards.

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  • I generally pay it off each week when I sit down to reconcile my accounts.

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  • Once a month by Direct Debit for the full statement balance. Everything is budgeted in YNAB so I could pay the full statement balance but there is no benefit to me of paying earlier than I need to so I prefer to have the money sitting in my bank account rather than that of a big corporation.

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  • I’ve got one that I use and pay in full, and it’s still enough of a novelty I do it fairly soon after spending on it.

    The other card is carrying a debt and I don’t spend on it. I have a standing order monthly and I overpay just after budgeting.

    Both work fine on YNAB. I don’t have any of the buggy issues that others mention.

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  • I recently lowered the credit limits for my cards, so I may now have to pay down the balance continuously during the month rather than once the statement arrives, as I used to do.

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      • WordTenor
      • A polymath, a pain in the ....
      • WordTenor
      • 5 mths ago
      • Reported - view

      Moohouse are you expecting someone to steal your cards soon?

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      • Moohouse
      • Software developer
      • Moohouse
      • 5 mths ago
      • Reported - view

      WordTenor No. Rules and regulations are being forced upon me so I may choose between several bad options where the, for now, least hampering would be to minimize credit limit on all cards but my two most frequently used cards. Closing all credit cards is now what gives me the 'maximum mortgage' I hope I won't need for some time yet.

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      • WordTenor
      • A polymath, a pain in the ....
      • WordTenor
      • 5 mths ago
      • 2
      • Reported - view

      Moohouse Ah, gotcha. But...that nevertheless strikes me as very strange advice, at least for the U.S. Most U.S. credit scoring systems want you to keep lines of credit open, but clear. You may not be in the U.S., or you may genuinely be in a weird situation. However, that is bizarre enough advice to me that if you are in the U.S., I would make sure you have a second opinion on the best way forward.

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      • lindsay_g
      • Beige_Banjo.3
      • 5 mths ago
      • 1
      • Reported - view

      WordTenor In the UK it’s also recommended to run credit, but be paying it (!) to help prove credit-worthiness for mortgage applications.

      Any defaults within three years, though, can derail you. I heard *cough* from a friend.... ;)

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