Starting to use Credit Card
I want to start to use my credit card instead of my debit card to get more reward money back. I will be paying off this credit card in full each month. I have watched several videos on the subject and have a good understanding. But, to get started cleanly, I plan to pay off this months credit card bill in full, and then enter a new credit card account in YNAB. I know that the starting balance will be zero. My question is, what do I enter for the budget. I think I leave this blank since I will be starting with no balance. Please advise.
You only budget for your credit card if you are paying off a balance (this includes budgeted purchases that were made on the card before entering it in YNAB). If you have $100 available in groceries and you pay $25 with your card and enter it in your register as an expense from the credit card with category groceries, YNAB will move $25 from the available groceries (activity in the middle activity column causing the right available column to be reduced down to $75) into your Credit Card Payment Available amount for that account.Reply
Hi Bayou Buckeye !
If your starting balance is zero, you won't need to budget for it (since it's zero).
Since you plan to pay your credit card in full, you'll want to make sure your credit card category balance matches your credit card balance. If you owe $100 on your credit card, you'll need $100 Available in the credit card category to pay the card in full - as long as all of your credit card purchases are budgeted for, this will happen automatically. :)Reply
Hi there, I'm jumping into this thread because I'm having difficulty with this. I've entered my credit card account and it's showing up in my Credit Card Payments category group. I manually enter transactions into the CC account as I make them, and the correct balance is showing at my CC account but not in the category at my budget. For example, right now there's a balance of $844 on my CC. I plan to make more purchases over the next few weeks and pay it in full before they charge interest. The category in my budget lists $194.70 as budgeted, $119.16 as "activity," and $134.40 as available (???).
In my budget the corresponding categories have the right adjustments (for example, Medical went from $200 to $170 when I made a copay of $30 on my CC). But why isn't the total tab for the CC listed in the budget under Credit Card Payments category? Is this weird, or am I doing something wrong? I started YNAB last week and made some purchases in December, paid the card in full based on cleared transactions, but some transactions carried over from December. Not sure if there's a setting that I've missed or if I'm not using it correctly.
Sorry to barge into this thread, but it seemed to fit! :)Reply