The basic ways to pay your credit card bill
You can pay your credit card bill through your card issuer's website, by phone, by mail, or through automatic transfers from your bank account. Most issuers also accept payments at their branch locations if they have physical offices. The method you choose does not change what you owe — it only changes how fast the payment reaches the card company and whether you have to remember to do it each month.
The fastest way is usually online through your card issuer's website or mobile app. You log in, enter the amount you want to pay, and the money leaves your bank account within one business day. Paying by phone takes about the same time; you call the number on the back of your card and speak to a representative who processes the payment over the phone. Both methods are free.
Automatic payments are the easiest to maintain because you set them up once and they happen on the same day each month without you having to remember. You authorize your card issuer to pull money directly from your checking account on a date you choose. This works well if your income is predictable, though 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.
Mailing a check is slower — it typically takes five to seven business days for the payment to arrive and be processed — but it is still free and leaves a paper record. Write the check to your card issuer, include your account number on the check, and mail it to the address shown on your bill.
Key Takeaways
- Online and phone payments reach your card issuer within one business day and are free, while mailed checks take five to seven business days.
- Automatic payments remove the need to remember each month, but you must may support your bank account has enough money on the payment date or face overdraft fees.
- Your minimum payment is the smallest amount you can pay without penalty, but paying only the minimum means you will pay interest on the remaining balance.
- A payment is considered late if it arrives after the due date shown on your bill, and late payments damage your credit score and trigger penalty fees and higher interest rates.
- If you cannot pay by the due date, contact your card issuer before the important date to discuss hardship programs or payment plans.
Understanding your minimum payment versus paying in full
Your credit card bill shows two amounts: the minimum payment and the total balance. The minimum payment is the smallest amount you can pay without triggering a late fee. It is usually 1 to 3 percent of your total balance, or a flat amount like $25, whichever is higher. Paying only the minimum keeps you in good standing with your card issuer and prevents damage to your credit score from a missed payment.
However, paying only the minimum means you will pay interest on the money you do not pay back. If your card has a 20 percent annual interest rate and you carry a $1,000 balance while paying only the minimum, you will pay roughly $200 in interest over the course of a year, and it will take you several years to pay off the full balance. The longer you carry a balance, the more interest you pay.
Paying the full balance means you owe no interest on that purchase. If you pay your full balance every month, you only pay the annual fee (if your card has one) and you avoid interest charges entirely. This is why paying in full, when you can, is the cheapest way to use a credit card.
If you cannot pay the full balance, paying more than the minimum still saves you money on interest compared to paying only the minimum. Even an extra $50 or $100 per month reduces the total interest you will pay and gets you out of debt faster.
When your payment is due and what "grace period" means
Your payment is due on a specific date each month, shown on your bill as the due date. If you pay online or by phone, the payment must be submitted by 11:59 p.m. Eastern time on that date to count as on-time. If you mail a check, it must be postmarked by the due date, though it may not arrive for several days after.
A grace period is the number of days between when your billing cycle ends and when your payment is due. Most cards offer a grace period of 21 to 25 days. During this time, you can pay without interest on new purchases. However, the grace period only applies if you paid your previous balance in full. If you carry a balance from the previous month, interest starts accruing when ready on new purchases, even during the grace period.
Your card issuer must mail or deliver your bill at least 21 days before the due date. This gives you time to receive it and submit payment. If you do not receive your bill, you are still responsible for paying by the due date, so set up online access to your account so you can check your balance anytime.
What happens when you miss a payment
If your payment does not arrive by the due date, your card issuer will report the account as late. The consequences start when ready and compound over time. A payment that is 30 days late triggers a late fee (usually $25 to $40 for the first late payment, higher for subsequent ones) and your interest rate may increase to a penalty rate, which can be 25 to 30 percent or higher depending on your card and your credit history.
A late payment also damages your credit score. Payment history makes up 35 percent of your credit score, so a single late payment can drop your score by 50 to 100 points or more, depending on how high your score was before. This affects your ability to borrow money for a car, a home, or other credit products, and it may raise the interest rates you are offered on future accounts.
If your payment is 60 days late, the late fee increases and your interest rate may rise further. At 90 days late, your card issuer may close your account and send your debt to a collection agency. At 180 days late (six months), the card issuer typically writes off the debt as a loss and sells it to a debt collector. The late payment stays on your credit report for seven years from the date it first became late.
Even one missed payment can have lasting effects. However, the damage lessens over time if you pay on time going forward. After two years of on-time payments, the late payment has much less impact on your credit score.
Setting up automatic payments and avoiding overdrafts
To set up automatic payments, log into your card issuer's website or app, find the payments section, and select "automatic payment" or "recurring payment." You will enter your bank account number and routing number, choose the payment amount (minimum, full balance, or a fixed amount), and select the day of the month you want the payment to happen.
Choose a payment date that comes a few days after you normally receive income. If you are paid on the 15th and the last day of the month, set your payment date for the 20th or the 1st, giving yourself a buffer. This reduces the risk that your bank account will not have enough money when the payment is due.
If your bank account does not have enough money on the payment date, the automatic payment will fail. Your bank will charge you an overdraft fee (typically $25 to $35), and your credit card payment will be late. You will then face late fees and interest rate increases from your card issuer as well. To avoid this, check your bank balance before the payment date, or set up a low-balance alert with your bank so you know if money is running short.
You can change or cancel an automatic payment at any time through your card issuer's website. If you cancel automatic payments, set a phone reminder for a few days before your due date so you do not forget to pay manually.
Paying more than your minimum when money is tight
If you cannot pay your full balance but can pay more than the minimum, do so. The extra money goes directly toward reducing your balance, which means less interest accrues the next month. Even $25 or $50 extra per month makes a measurable difference over time.
If you cannot pay even the minimum, contact your card issuer before the due date. Many card companies offer hardship programs for customers facing temporary financial difficulty. These programs may lower your interest rate, reduce your minimum payment for a set period, or freeze your account so you can pay down the balance without new charges. The catch is that these programs usually require you to stop using the card, and they may be reported to credit bureaus, but they prevent the damage of a late payment.
Some card issuers also offer payment plans or deferment options if you explain your situation. The key is to call before you miss a payment, not after. Once a payment is late, your options narrow and the damage to your credit score has already begun.
Paying off a balance faster: strategies that work
If you carry a balance and want to pay it off without taking years, the most effective strategy is to pay a fixed amount each month that is higher than the minimum. Use an online calculator to see how long it will take to pay off your balance at different payment amounts. Paying an extra $50 or $100 per month can cut years off your payoff timeline and save hundreds in interest.
Another strategy is to stop using the card while you pay it down. Every new purchase adds to your balance and extends the payoff timeline. If you freeze the card and only make payments, your balance shrinks faster.
If you have multiple credit cards with balances, prioritize the one with the highest interest rate. Pay the minimum on all of them, then put any extra money toward the highest-rate card. Once that one is paid off, move to the next highest rate. This approach, called the avalanche method, saves the most money on interest.
Some people use the snowball method instead: pay off the smallest balance first, then move to the next smallest. This method does not save as much money on interest, but it gives you quick wins that can motivate you to keep paying down debt.
Frequently Asked Questions
What time of day does my online payment need to be submitted to count as on-time?
Most card issuers accept payments submitted by 11:59 p.m. Eastern time on the due date. If you submit after that time, it may be processed the next business day and count as late. Check your card issuer's website for their specific cutoff time, as it can vary.
If I pay my bill early, does that help my credit score?
Paying early does not hurt your credit score, but it does not help it either. Your credit score is based on whether you pay by the due date, not how early you pay. However, paying early reduces the amount of interest you pay and lowers your credit utilization ratio, which can indirectly help your score over time.
Can I make multiple payments in one month?
Yes. You can make as many payments as you want in a single month. Some people pay twice a month to stay on top of their balance, or make a payment as soon as they make a large purchase. Multiple payments do not affect your credit score negatively, and they reduce the interest you pay.
What should I do if my automatic payment fails?
Log into your card issuer's website and check the payment status. If it failed, you will usually see a reason (insufficient funds, invalid bank account, etc.). Make a manual payment when ready to avoid a late payment. Then contact your card issuer or your bank to fix the problem before your next automatic payment is scheduled.
Does paying by phone cost extra?
No. Paying by phone is free with most card issuers. However, some third-party payment services that process credit card payments may charge a fee. Always pay directly through your card issuer's phone line (the number on the back of your card) to avoid fees.