Personal Finance - Credit Card Payment
💳 A personal finance writer reached out with the following question for her audience:
“Are there any benefits to making multiple credit card payments each month?”
Here is my reply.
📌 There are no obvious benefits to making multiple payments during the month vs. making one payment after receiving the credit card statement.
📌 One scenario that could make sense is that you anticipate a large purchase later during the month and your open-to-buy room (current limit - current balance) is not high enough unless you pay off some balance.
Even in that scenario, you can ask the card issuer to evaluate whether you can qualify for a credit line increase. In addition, a card issuer often allows your purchase to temporarily go above your current credit limit if your credit is deemed decent enough.
📌 Some might say they do not have the financial discipline to save all the available funds until receiving the monthly statement. That could be another reason for them to make more frequent payments as the fund becomes available.