How to Pay a Credit Card Bill | Chase (2024)

Paying your credit card might seem like a small task, but it’s a crucial one. Getting into the habit of paying your bill on time every month can have an impact on your financial well-being.

In this article, we’ll break down the different ways you can pay your credit card bill, why you should always pay on time and some tips for setting yourself up for success.

Why you should pay your credit card bill on time

Each credit card has a billing cycle that lasts about a month. Once this billing cycle ends, your credit card issuer will send you a monthly statement. This statement includes your account activity, your minimum payment due and a due date. This due date does not change from month to month, so you’ll always know when it’s coming up.

It’s important to pay at least your minimum payment on time every month. On-time payments are one important aspect of building and maintaining a positive credit history. Missing payments can tarnish your credit score for years and could affect your creditworthiness.

Let’s break down a few reasons you’ll want to be consistent with your credit card payments.

  • You avoid penalty APRs or late fees: Paying at least your minimum payment on time each month means you’ll avoid any late fees or higher APRs, which will only add to your total outstanding balance.
  • Establish a better credit score: Using your credit card and paying your balance on time will help you establish a positive payment history. Payment history is a key element in determining your credit score. Consistent payments over time may improve your credit score and increase your chances of being approved for credit cards, a mortgage or auto loan.
  • Potential for better borrowing terms: Paying your bill on time shows lenders that you’re capable of managing your debt. This may lead to things like credit line increases, or more favorable APRs on future credit cards or loans you apply for.

What happens when you pay your credit bill late?

If you don’t pay at least the minimum amount due each month, your credit issuer could report your account to one or all of the three major credit bureaus — Experian™, Equifax® and TransUnion® — as past-due. Your issuer will typically contact you and send overdue notices about your missing payments.

When you fail to pay your credit card debt over multiple billing cycles, consequences can become significant, including late fees, increased APRs (called penalty APRs), charge-offs and the threat of delinquency.

In addition, your credit score may suffer. Credit bureaus are responsible for generating your credit score. Having missed payments or derogatory remarks appear on your credit report can impact your credit score significantly.

The degree of impact depends on how long it's been since you missed the due date. The later your payment, the worse it can affect your score. Here are a few scenarios:

If you’re a few days late making a payment

If you miss a payment by a few days but make the payment in full immediately, it's possible that your issuer won't report this activity to the credit bureaus as a late payment. The usual time period is 30 days for a credit report to reflect a late payment. This late payment could hurt your score and lead to higher annual percentage rates (APRs) as a consequence, depending on your card's terms and conditions.

If you're 30 days late making a payment

If you haven't made your payment within 30 days of the due date, this is typically when issuers will report a late payment to the credit bureaus. Even if this is the first and only time you make a late payment after 30 days, it can still impact your score, depending on the scoring model and your current credit score.

If you're 60 days or more late making a payment

At this point, your credit score could be hurt significantly, and your APR may increase to the penalty APR, which is outlined in your credit card agreement. If you wait for more than 120 days, your creditor could write this debt off as a loss (otherwise known as a charge-off). Even if you pay off the late payment eventually, derogatory remarks like this stay on your report for up to seven years.

Different ways you can pay your credit card bill

Here are some common ways that card issuers will usually let you pay your credit card bill.

  • Online bill pay
  • Mobile app
  • Cash
  • Check
  • Money transfer
  • At ATM
  • In person at a branch

Some payment methods may result in a fee. Depending on your method of payment and the time of day you submit your payment, it may be credited and posted as a transaction on your account the same day that the bank receives it or the next business day.

According to the law regulated by the Consumer Financial Protection Bureau, payments received by 5 p.m. must be credited the same day. Your due date isn't the only time you can make a payment. You can also pay your bill early or make multiple payments each month, depending on the card.

Should you carry a balance your credit card?

If you want to avoid interest charges, you’ll need to pay off your full balance each month. If you’re unable to pay off your full balance, make sure you pay at least the minimum payment.

Helpful tips to remind you to pay your credit card bill

With all the things in your life you have to remember, there are ways to be proactive about remembering to pay your credit card bill. Here are just a few:

  • Set up auto pay: Your bank can set you up with automatic payments, which are deducted directly from your bank account each month on the date you assign. No need to remember logins or keep up with the due dates of multiple bills.
  • Set up text alerts: You’ll be notified when your payment due date is coming up.
  • Coordinate your payment due dates: If you have multiple credit cards with all different due dates, you might want to inquire about syncing up all payment due dates to just one. You can usually do this by contacting your credit card issuer via phone or submitting an online request.
  • Know your credit card terms: Stay organized by keeping a spreadsheet or document that tracks the payment due dates, balances, interest rates and promo offers for each card. The more you know about the terms of each one, the more you can focus on which to pay off first as a strategy for chipping away at any debt.

Key takeaways

Credit card companies offer many ways for you to pay your bill each month. You can pay online, with an app or in person, among other options. Setting up auto-pay or other reminders can help ensure you never miss a payment. And it’s always a good idea to pay at least your minimum payment each month, or more if you can.

If you’d like a free tool that provides on-going insight into your credit score and other helpful credit management resources, consider Chase Credit Journey®.

How to Pay a Credit Card Bill | Chase (2024)

FAQs

What is the proper way to pay your credit card? ›

The best way to pay your credit card bill is by paying the statement balance on your credit bill by the due date each month. Doing so will allow you to avoid incurring any interest or fees. In case you weren't aware, you do not automatically pay interest simply by having a credit card.

How do you pay out a credit card? ›

6 steps to help you pay off your credit card
  1. Look your credit card debt in the eye.
  2. Stop adding to your debt.
  3. Pay more than the minimum amount.
  4. Set up a repayment plan.
  5. Think about consolidating with a balance transfer.
  6. Keep up the good work.

How do you make payments to a credit card? ›

In-person payments: You may be able to make a payment at a bank branch or ATM, which can be a fast and secure way to make your payments. By phone: Call the bank to make your payment after confirming your credit card account and payment method. The number may direct you to an automated service line.

How do I pay my credit card bill step by step? ›

Here are the steps to pay via UPI:
  1. Initiate a UPI payment from any UPI-enabled application like Google Pay, PhonePe, PAYTM etc.
  2. Select the option "Pay Credit Card bill".
  3. Enter your Credit Card details.
  4. Verify the recipient's name and input the bill amount.
  5. Complete the transaction by entering your UPI PIN.

What is the 5 24 rule for credit cards? ›

What is the 5/24 rule? Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

Is it bad to max out a credit card and pay it off immediately? ›

Under normal economic circ*mstances, when you can afford it and have enough disposable income to exceed your basic expenses, you should pay off your maxed-out card as soon as possible. That's because when you charge up to your credit limit, your credit utilization rate, or your debt-to-credit ratio, increases.

Should I pay off my credit card after every purchase? ›

If you regularly use your credit card to make purchases but repay it in full, your credit score will most likely be better than if you carry the balance month to month.

When should I pay my credit card bill? ›

You should pay your credit card bill in full before the due date to avoid racking up expensive interest charges that compound when you carry a balance from month to month.

How much should I pay on my credit card each month? ›

Ideally, you should pay off your balance in full, though paying as much as you can above the minimum will help you save money. But don't feel defeated even if you're only able to make the minimum payment each month — you're still ensuring your credit remains in good standing.

Can you pay a credit card bill with cash? ›

Sometimes you may have to pay your credit card with cash. You can do this at your issuer's local bank branch, an issuer-owned ATM (if applicable) or through a money order.

How can someone pay my credit card bill? ›

There are several ways to pay someone else's credit card bill.
  1. Pay Online. To pay online, the person paying starts by logging in to their own financial institution. ...
  2. Pay by Phone. Anyone can call the number on the back of your credit card. ...
  3. 3. Mail a Payment. ...
  4. Visit a Branch of the Issuing Bank.
May 16, 2023

How is credit card payment done? ›

The cardholder (the buyer) presents a credit or debit card to the merchant for payment. This can happen directly, as when a card is swiped, tapped, chipped or inputted manually in a traditional brick-and-mortar store, or it can take place by phone or online.

What is the easiest way to pay a credit card bill? ›

The best way to pay credit card bills is online with automatic monthly payments deducted from a checking account. This minimizes the chances of missing a credit card payment due date, and it can also help cardholders avoid interest charges, depending on the type of payment scheduled.

Can I pay my credit card bill through a debit card? ›

Most of the banks allow you to make credit card payments using a debit card without any registration. You can directly enter your debit card details in the payment channel or use your debit card at the bank's ATM to make payment. Payments using a debit card can be made from anywhere in India and at any time.

What is the process of paying with credit card? ›

Here's a simplified overview of how the process works:
  1. Initiation. The cardholder provides their credit card information to the business. ...
  2. Data transmission. ...
  3. Authorization request. ...
  4. Approval or decline. ...
  5. Authorization response. ...
  6. Settlement. ...
  7. Funds transfer. ...
  8. Cardholder billing.
Aug 22, 2023

What is the best payment method for credit cards? ›

The best way to pay credit card bills is online with automatic monthly payments deducted from a checking account. This minimizes the chances of missing a credit card payment due date, and it can also help cardholders avoid interest charges, depending on the type of payment scheduled.

How to pay a credit card bill strategically? ›

With the snowball method, you pay off the card with the smallest balance first. Once you've repaid the balance in full, you take the money you were paying for that debt and use it to help pay down the next smallest balance.

How to pay credit card smartly? ›

A better strategy is to pay your credit card bill in full whenever possible to avoid accruing interest and making your purchases more expensive in the long run. If you can't pay in full, pay off as much as you can by the due date to reduce the balance you'll pay interest on.

What is the safest way to pay by credit card? ›

Chip-enabled credit cards

Instead of swiping your credit card to make a payment, you dip your card into the payment terminal instead. Sometimes, you may even be prompted to enter a PIN to verify card ownership. Credit cards that have a built-in EMV chip reduce fraud through tokenization.

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