How Often to Pay a Credit Card
Money Girl discusses whether you should pay your credit card off in 2 smaller payments each month vs. 1 large payment once a month.
Laura Adams, MBA
Jessica posted on the Money Girl Facebook page:
I’ve always wondered if it’s advantageous to send 2 smaller payments a month to a credit card vs. 1 large payment only once a month. I know the devil is probably in the details as far as when and how the bank calculates the interest accrual, but is there a calculator anywhere that you can use?
ANSWER: Sending more than one payment to a credit card each month can help you better manage money and save interest. Here’s how: Credit cards charge you a daily interest rate–which is the annual rate divided by 365–on the balance of your account. You have a grace period that lasts until your statement due date–so if you charge a new outfit and pay off your account in full, no interest accrues. {C} Read More »