Credit Card payments

I put my purchases on credit card , then pay credit card off every week in full.

My credit cards are linked and transactions are automatically downloaded. The payment transaction would be reflected on the credit card account which will offset the purchases.

 In addition when my checking account transaction are downloaded they will have the credit card payment as well. And that is  where all balances and categories go out of wack.

Can you please guide me how to set it up correctly?

Thank you

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  • A payment to a credit card account needs to be a transfer. So the payee on the checking account side will be a transfer to the credit card and the payee on the credit card needs to be a transfer from checking.

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      • dakinemaui
      • dakinemaui
      • 1 mth ago
      • 2
      • Reported - view

      Along these lines, it's a good idea to use the scheduler to manually enter this transfer. Import will match it if the amounts agree.

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    • Tobias Thank you, I will try.

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      • SilverKitty
      • Financial Analyst
      • Silverkitty
      • 1 mth ago
      • 1
      • Reported - view

      dakinemaui Thank you for this. I just recently started using YNAB and this made me realize exactly how to record my CC payment. I was worried about overpaying on it since there is more than just the current balance. There is also a loan tied to one of them that I have to pay each month as well and I wasn't sure where to add that extra expense or cover it without blowing up YNAB

      Like 1
  • A very common error is failing to reserve funds (budget) to pay off the starting balance. A paid-in-full credit card must have a Payment category Available amount that will cover the entire working account balance.

    YNAB will automatically reserve money to cover budgeted purchases.

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    • dakinemaui Thank you I am confused a little bit.

      for example : I budget 500 for glossaries, and use credit card to pay for it. Do I need to budget 500 for glossaries and 500 for cc payment? it would be double counting , instead of 500 budgeted for glossaries, now I have 1000 budgeted .  Am I way off? 

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      • Superbone
      • YNAB convert since 2008
      • Superbone
      • 1 mth ago
      • Reported - view

      Salmon Tape Nope, you just budget for groceries and when you buy some and add the transaction, it will move the purchase amount to the CC Payment category automatically. However, you do have to budget for the initial CC Payment category when you first add it to YNAB. Since you pay your credit card in full, the Payment balance should always be the opposite of your current CC debt.

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      • Salmon Tape
      • Salmon_Tape.12
      • 1 mth ago
      • 1
      • Reported - view

      Superbone thank you!

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  • Incidentally, your practice of paying the card off every week is more likely to have issues when making a return. Most will pay the statement balance on/near the due date. Earning interest on the CC's money is a nice bonus.

    Either way, a negative CC Payment category Available amount should be fixed immediately.

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  • A quick read through of this should help orient you as well:

    https://docs.youneedabudget.com/article/180-credit-card-basics

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