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Credit Cards

Why You Should Be Making Multiple Credit Card Payments in One Month

Updated May 02, 2023   |   4-min read

An increasing number of people who are tired of their finances being controlled by their credit card balances are picking up on a new practice – making multiple credit card payments per month. They are finding that by simply making two or more minimum payments to their credit card, their entire financial picture can change for the better. Here’s what you can expect if you take up the practice of making multiple credit card payments each month:

No More Late Payments

It may be stating the obvious, but if you diligently make multiple payments each month, you shouldn’t be late again which means fewer late fees. You will also avoid incurring any late payments on your credit report which will keep your credit score healthy.

Pay Down Your Debt Faster

Using the same principle for paying down your mortgage more quickly, the same can be accomplished with your credit card debt.

With a mortgage, you can split your monthly payment in two and pay it every two weeks. That results in 26 half payments, which is equivalent to 13 monthly payments. That one extra payment each year reduces the time it takes to pay off a 30-year mortgage by seven years. You can accomplish the same thing by dividing your monthly credit card payment in two and paying it every two weeks.

The faster you pay down your debt, the less you pay in monthly finance charges. How much could you save? Check out our Debt Payoff Calculator to find out!

Makes It Easier to Pay More Than the Minimum Payment

By making multiple credit card payments, it becomes easier to budget for larger payments. If you simply split your minimum payment in two and pay it twice a month, it won’t have a big impact on your balance. But if you make the minimum payment twice a month, you will pay down your debt much more quickly. Making multiple payments, especially if they are coordinated around your paychecks, can help you smooth out your cash flow and make it easier to increase your total monthly payment amount.

No More Interest Charges

When you do pay down your credit card debt you won’t have any more finance charges. Making multiple payments each month on your current balance ensures you won’t have a month-ending balance that will incur a finance charge.

Improve Your Credit Score

While making multiple payments each month won’t affect your credit score (it will only show up as one payment per month), you will be able to better manage your credit utilization ratio. Usually when you make a credit card payment on the due date, say on the 15th of the month, the credit card companies wait until the end of the month to report your activity. By then, you could have racked up additional credit card balances, which increase your credit utilization. That helps to improve your credit score.

Keeps You on Track With Your Budget

If you use your credit cards for monthly expenditures, such as food, gas, and other miscellaneous spending, then you can track your budget each time you make a credit card payment. Ideally, your credit card payments should not exceed your budget for the items purchased. If they do, it means you are overspending.

If you are paid twice a week, you can align your credit card payments with your paycheck, which will enable you to better control your monthly cash flow and stay on track with your budget.

Pay as You Go Keeps You in the Black

If you do use your credit card for non-budgeted purchases, paying multiple times can help ensure you pay off those purchases so you don’t carry a balance. If you do end up carrying a balance, you should increase your bi-weekly payments to pay it off more quickly.

It’s Easy to Make Multiple Credit Card Payments

It’s easy to make multiple payments to your credit card accounts. Although most card companies only allow you to set up one auto-pay per month, you are allowed to make a manual payment online anytime you want.

With some card companies, there is no limit to how many payments you can make in a month, but there may be a limit to the number of payments you can make in a 24-hour period. Alternatively, if your bank offers it, you can set up your second auto-pay through bill pay on your online bank account.