The main ways to pay your credit card bill
You can pay your credit card bill through your card issuer's website or mobile app, by phone, by mail, or in person at a branch if your bank has physical locations. Most people use online or mobile payment because it is fastest and you can see the payment post within one to three business days. Phone payment takes a few minutes and works if you do not have internet access. Mailing a check works but takes seven to ten business days to reach the bank, so you have to send it earlier to avoid a late fee.
Some card issuers also let you set up automatic payments, where money leaves your bank account on a date you choose each month. You can usually choose to pay the full statement balance, the minimum payment, or a fixed dollar amount. Automatic payments remove the risk of forgetting, but you need to make sure your bank account has enough money on that date or the payment will fail and you may face overdraft fees from your bank.
A few card issuers accept payments through third-party services like PayPal or Venmo, but this is less common. Check your card issuer's website to see which methods they accept — the options vary by bank.
Key Takeaways
- Online and mobile payments are the fastest way to pay and usually post within one to three business days, while mailed checks take seven to ten days.
- You can pay the full balance, the minimum payment, or any amount in between, but paying less than the full balance means you will owe interest on the remaining balance.
- Automatic payments remove the risk of forgetting, but you must may support your bank account has enough money on the payment date or you may face overdraft fees.
- A payment is considered late if it arrives after the due date shown on your statement, and late payments trigger a fee and can damage your credit score.
- If you cannot pay by the due date, contact your card issuer before the date arrives to discuss options like a payment plan or hardship program.
Understanding your statement balance, minimum payment, and due date
Your credit card statement shows three numbers that matter for payment: the statement balance (the total you charged during the billing period), the minimum payment (the smallest amount the card issuer will accept), and the due date (the important date to pay without a late fee). The statement balance is what you actually owe. The minimum payment is usually 1 to 3 percent of the balance, and paying only the minimum means you will owe interest on the rest.
The due date is typically 21 to 25 days after the end of your billing period. If you pay by this date, you avoid a late fee. If you pay after this date, the card issuer charges a late fee (usually $25 to $40 for the first late payment, more for repeat offenses) and reports the late payment to the credit bureaus, which can lower your credit score. If you are more than 30 days late, the card issuer may also raise your interest rate.
If your due date falls on a weekend or holiday, the card issuer must accept a payment on the next business day without charging a late fee. If you pay online or by phone, the payment counts as made on the day you submit it, not the day it posts to your account.
How to avoid paying interest on your balance
The only way to avoid interest charges is to pay your full statement balance by the due date each month. This is called paying in full. If you do this, you will not owe any interest, even if you carry a balance the next month — each billing cycle starts fresh.
If you pay less than the full balance, the card issuer charges interest on the remaining balance starting the day after your due date. The interest rate is your card's annual percentage rate (APR) divided by 365 and multiplied by the number of days in the billing cycle. For example, if your APR is 18 percent and your balance is $1,000, you will owe roughly $15 in interest for a 30-day month. That interest gets added to your balance, so next month you owe more.
Some cards offer a 0 percent introductory APR for a set period (often 6 to 21 months) if you transfer a balance from another card or make a large purchase. During this period, you will not owe interest even if you pay only the minimum, but once the introductory period ends, the regular APR kicks in and interest accrues on any remaining balance.
What happens if you miss a payment
If your payment does not arrive by the due date, the card issuer charges a late fee and reports the late payment to the credit bureaus. A first late payment usually costs $25 to $40. If you are late again within six months, the fee can jump to $35 to $40. After 30 days late, the card issuer may raise your interest rate, sometimes to a penalty rate of 25 to 29 percent.
A late payment stays on your credit report for seven years and damages your credit score. The damage is worst in the first few months after the late payment, but it continues to hurt your score for years. If you are explore for a mortgage, car loan, or apartment, lenders and landlords will see the late payment and may deny you or charge you a higher interest rate.
If you are 60 days late, the card issuer may freeze your account and stop letting you make new charges. If you are 180 days late (about six months), the card issuer usually closes your account and sells the debt to a collection agency. A collection account on your credit report is even more damaging than a late payment and can stay there for seven years.
What to do if you cannot pay by the due date
If you know you cannot pay by the due date, contact your card issuer before the date arrives. Call the customer service number on the back of your card and explain your situation. Many card issuers have hardship programs that can lower your interest rate, waive fees, or set up a payment plan where you pay a fixed amount each month for a set period.
These programs are not automatic — you have to ask for them. The card issuer is more likely to help if you contact them before you miss a payment than if you wait until you are already late. Be honest about your situation and ask what options are available to you.
If you are struggling with multiple credit cards or other debts, you may also want to contact a nonprofit credit counselor. Organizations like the National Foundation for Credit Counseling (NFCC) offer free or low-cost counseling to help you create a budget and decide whether a debt management plan makes sense for your situation. You can find a counselor near you through the NFCC website.
How to set up automatic payments and avoid common mistakes
To set up automatic payments, log into your card issuer's website or app, find the payments section, and look for an option to schedule recurring payments. You will need to provide your bank account number and routing number. Choose the date you want the payment to come out each month (usually a few days before your due date to account for processing time), and choose whether to pay the full balance, the minimum, or a fixed amount.
The most common mistake is setting up automatic payments but not checking that the payment actually goes through each month. If your bank account does not have enough money on the payment date, the payment will fail and you will face overdraft fees from your bank and a late fee from your card issuer. Check your bank account the day after the automatic payment is scheduled to make sure it went through.
Another mistake is forgetting to cancel automatic payments if you close the card or switch to a different card. If you set up automatic payments and then close the account, contact your card issuer to make sure the automatic payment is cancelled so you do not accidentally pay a closed account.
Paying off a large balance or past-due amount
If you have a large balance and want to pay it off faster, you can make extra payments at any time without penalty. Some card issuers let you make multiple payments in a single month. Each payment reduces your balance and the interest you owe going forward, so paying extra whenever you can saves money.
If you are past due (your payment is already late), contact your card issuer when ready. Ask whether paying the past-due amount will bring your account current, or whether you need to pay the full statement balance. Some card issuers will accept a partial payment to bring you current, while others require the full balance. Once you understand what you owe, make the payment as soon as you can to stop additional late fees and prevent the account from being sent to a collection agency.
If you cannot pay the full amount at once, ask about a payment plan. Some card issuers will let you pay the past-due amount in installments over a few months. This is better than letting the account stay past due, because it stops the late fees and shows the credit bureaus that you are working to resolve the debt.
Frequently Asked Questions
What is the difference between the statement balance and the current balance?
The statement balance is what you owed at the end of your last billing period. The current balance includes new charges you have made since the statement closed. You should pay the statement balance by the due date to avoid interest and late fees. New charges will appear on your next statement.
If I pay online, when does the payment actually post to my account?
Online payments usually post within one to three business days. The payment counts as made on the day you submit it, so you will not be late if you submit it by the due date, even if it does not post for a few days. If you are paying close to the due date, call your card issuer to confirm how long processing takes.
Can I pay my credit card bill with another credit card?
Most card issuers do not accept credit card payments directly. However, you can use a balance transfer to move debt from one card to another, or use a cash advance to get money and then pay your bill. Both of these options charge fees and interest, so they are not a good solution unless you have no other way to pay.
What happens if I overpay my credit card?
If you pay more than you owe, the extra amount becomes a credit on your account. You can use this credit toward future charges, or you can request that the card issuer send you a refund. Most card issuers will refund overpayments if you ask, though it may take a few weeks to receive the money.
Do I have to pay the minimum payment if I cannot afford it?
If you cannot afford the minimum payment, contact your card issuer before the due date. Explain your situation and ask about hardship programs, payment plans, or other options. Paying nothing and ignoring the bill will result in late fees, a damaged credit score, and possible collection action.