I recently got a great tip from my banker when making an investment, he suggested I make weekly payments on my credit card instead of monthly payments. The amount due is still going to be monthly but when you get into the habbit of paying weekly you are reducing your interest charges quite a bit by not having it built up for an entire month. The reason that's a good thing is that it doesn't only save you money, it raises your credit score a little, as does using your card a lot at the same time for even small purchases like your daily coffee. Use it and pay it off frequently for the best of both worlds, lower interest charges AND a better score.
That's a great tip, thanks. I never would have even considered making weekly payments on my credit cards. It does make total sense though, and it could really decrease the interest you pay. I also think it would be a good idea to pay as much as you can each week if you can't pay it all off. That way, you would be more apt to pay the card off sooner than if you made monthly payments. I've also heard that using it frequently and paying it off right away is a good plan as well. One person I know uses a card solely for gas - I thought that was pretty smart.
I really like this idea. It's similar to the idea of making bi-weekly payments on your mortgage. I had no idea it worked for credit cards too. Thanks for the tip!
Great tip Novasparker, one that a lot of people should be looking into. I don't have any credit cards now but when I did it would have been easier on me if I had paid off the amount in weekly installments, but not having a job at the time would have made that neigh on impossible.
Definitely good advice. In general, if you can, paying off after every time you make a purchase is ideal. If you can't do that, then yeah, weekly is a good idea....or pay some out of every check, whether that's weekly or every two weeks. Cutting down interest can go a long way in helping you pay off your principal.
It's a good idea if the card has daily interest ( most do). If the card only has monthly interest it doesn't save you interest charges. Although it does still make you more disciplined which is important.
That sounds like a brilliant idea to pay off debts without struggling much because you make several small payments over the month. Interest charges are often calculated on a daily basis, which means the higher the account balance, the higher interest you will have to pay. The end result means paying more for your credit card debts than you would pay if you were making weekly payments. Since banks calculate your credit score based on your frequency of making payments, you are also likely to raise your score without having to consult any credit repair agencies. I think if possible, you can even increase the frequency of credit card payments to twice per week, depending on how busy you are. This means I may even save a few hundreds of dollars throughout the year! Say not to higher interest..
Interesting idea. I currently don't have credit cards. But when I do, I might want to do this. Thanks!
I didn't know there were credit cards with daily interest!!! ...That is a really scary thing!...All of my cards have had monthly interest charges. Paying your card of weekly is a great way to make sure you aren't over spending!... I tend to put money on mine about twice a month but maybe I will start to double up on that.
Thanks for sharing this tip. I think it's a great idea to make weekly payments, because it spreads out the cost instead of you being hit with one big sum at the end of the month. I'm going to start doing that. I recently got my first credit card ever and I'm trying to use it to build credit, so I appreciate this idea for staying on top of the interest.
Right now I've been using mine just to pay my phone and internet bills. I already have money budgeted for those bills every month anyway, so I have the money to pay off my credit card right away after using it to pay those bills. I only have a credit card to build credit because I have a thin credit file from paying cash for everything my whole life, and I need to establish a credit history.
I think if the amount on the card is large enough that you can't clear it right off, then clear it using a line of credit. Interest rate is a lot lower on a line of credit. But of course this is only an option if you have a credit line available to you. Ryder13
I don't see how that's a bad idea at all. It's always good to try to pay things off as quickly as possible, and breaking into weekly payments rather than monthly ones can be a little easier on your budget as well.
That's a great tip. I may do that now. I recently just paid off one of my credit cards. If it will help my credit score, I wouldn't mind paying more frequently. It's money that I have to pay to anyway right? If I paid weekly, I would also pay my card of a lot quicker. I'm going to pass this along to my family and friends.
Making weekly payments on a credit card balance is something I have never considered. It would help to have advance payments on your card just in case something happened and you were not able to make a payment at some time.
This is such a good idea! Especially if you have a weekly salary, this should definitely do the trick and would keep you out of debt. Thanks for this tip!
A lot of creditors will cancel your card if you pay off your balance weekly. That's the only problem with this strategy. The entire credit system is so stupid, isn't it? They force us to take out several cards and carry balances or else they'll lower our scores or cancel our cards. The trick is to find credit card companies that will keep your account open even if you don't carry a monthly balance.
Those are some great tips and I really wish that more and more people followed them. I feel like in this world now we are having higher and higher interest rates for those who pay of their cards in the most minimum amount. Therefore to never have these worries it's always better to do these types of financial things quicker just because he early bird always catches the worm.
No, this isn't a good idea. It's gives the impression that you don't know how to manage money and/or that your stream of income is shaky and inconsistent. The company will look at you living paycheck to paycheck and they don't want those type of holders.
