Paying credit cards after each transaction...

If I were to start using credits cards for monthly expenses, that have been budgeted for, is there a reason not to go online and pay the amount as soon as the purchase is made or is it better to wait until the monthly statement?  

Thanks...

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  • 1) It's more work

    2) Money will sit in your bank accounts longer earning interest

    3) Only the statement balance is due in full by the next payment due date, so see #2

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  • I should add that I have most of my credit cards set to autopay the statement balance 1-2 days before the due date. Set it and forget it.

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  • Hi Matthew Mansfield !

    I think Nolesrule hit the nail(s) on the head here. While paying it off that often isn't necessarily a bad thing, it's unnecessary and could cost you interest (which is bad). As long as you're paying the card off before any fees or interest accrues, it works just as well as paying it after each purchase. :)

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  • My checking is non-interest bearing, so I don't worry about that part.  I pay mine pretty much as soon as the transactions post.  Or, at least pay once per week.  I don't care about the work.  It takes such little time to log in and make a payment.  I also manually record my transactions and let direct import be my cross-checking verification.  I can barely stand to see a balance on my credit cards.  I never let any credit card balance carry forward to the next month.    You need to do what is best for you to keep up and maintain your accounts.  There is no exact right way.  

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