Whenever we discuss the benefits of using credit cards, we typically caveat it with the most important rule: pay your credit card bill on time and in full every month. Paying on time prevents late fees and helps build your credit score, while paying in full ensures you avoid tacking on high interest.
But what does taking it one step further — paying your bill twice a month — do? Here’s what you need to know about the benefits of making multiple credit card payments in a billing cycle.
Better awareness of your budget
You can avoid paying credit card interest by paying your full statement balance by your card’s due date. But since each payment date is roughly a month apart, you can do a lot of spending in that time, and sometimes it can get out of hand quickly. By paying your credit card twice a month, you’ll be able to better track your spending over periods of time, and use that first payment as a financial check-in for the month.
If you’re spending is higher than you anticipated, you can take steps to adjust your budget and figure out where to cut back. If you find you’ve been spending less, you could consider moving funds into a high-yield savings account, or maybe plan a little treat or special expense if you’ve been hitting your goals.
Everyone budgets differently, but for those looking for a digital budgeting tool, Monarch Money can help you sync your bank accounts, credit cards and other financial accounts into one central location, and you can customize your dashboard, which automatically updates every time you log in.
Monarch
Cost
$8.33/month (billed $99.99 annually); $14.99/month (billed monthly) – get 50% off your first year with code CNBC50
Free trial
7-day free trial is available before subscribing
Standout features
Net worth tracker, investment portfolio tracking, goal creation and progress tracking, budgeting and expense tracking
Categorizes your expenses
Yes, but users can modify
Links to accounts
Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android); web version also offered
Security features
Utilizes industry-leading security practices, according to Monarch’s website
Terms apply.
Help keep your credit utilization low
Five factors go into creating your credit score, and the total amount of debt accounts for 30% of your overall score. Your credit utilization ratio is the amount you currently owe compared to the total amount you can borrow, and is a big part of the total debt calculation. If your credit limit is $5,000 and you’ve spent $2,500 on your card, you’re using 50% of your available credit.
A general goal to aim for would be keeping your credit utilization to 30% or lower, which is considered the “sweet spot” that shows credit card issuers that you’re using credit responsibly. Paying your credit card twice a month can be a good way to manage your utilization because you’ll have a lower balance reported to the credit bureaus at the end of the month when your statement closes. This is a useful tactic since credit utilization looks at not just your overall debt compared to available credit, but also how much of your available credit you’re using on each card.
If you have more than one credit card with the same bank, you may be able to move credit limits between accounts. While this isn’t always an option, certain banks—like Chase—let you move credit limits (with exceptions) between cards online.
For example, let’s say you have both the Chase Sapphire Preferred® Card (see rates and fees) and the Chase Freedom Unlimited® (see rates and fees). If you’re mostly using the Sapphire Preferred, you can use this tool to increase its credit limit and reduce the Freedom Unlimited’s limit. While you may have the same total available credit, you’ll have a lower credit utilization on that card.
Chase Sapphire Preferred® Card
CNBC Select Rating
5.0
On Chase’s site
CNBC Select Rating
5.0
On Chase’s site
Spotlight
With Points Boost, your rewards will be worth up to 1.5x on thousands of top-booked hotels and flights from select airlines through Chase Travel.
Credit score
Good to Excellent670–850
Regular APR
19.99% – 28.24% variable
Annual fee
$95
Welcome bonus
Earn 75,000 bonus points
See rates and fees. Terms apply. Member FDIC.
Read our Chase Sapphire Preferred® Card review.
The Chase Sapphire Preferred® Card packs a punch for a $95 annual fee card, offering annual travel credits, comprehensive travel protections and more.
You can transfer rewards to all of Chase’s travel partners including World of Hyatt, Southwest Rapid Rewards and many more
Long list of travel and shopping protections
$50 annual Chase Travel hotel credit
Has an annual fee
Requires a high credit score
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
Enjoy benefits such as 5x on travel purchased through Chase TravelSM, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases
Earn up to $50 in statement credits each account anniversary year for hotel stays through Chase TravelSM
10% anniversary points boost – each account anniversary you’ll earn bonus points equal to 10% of your total purchases made the previous year.
Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
Complimentary DashPass which unlocks $0 delivery fees & lower service fees for a min. of one year when you activate by 12/31/27. Plus, a $10 promo each month on non-restaurant orders.
Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Chase Freedom Unlimited®
CNBC Select Rating
5.0
On Chase’s site
CNBC Select Rating
5.0
On Chase’s site
Spotlight
New cardholders receive a 0% intro APR for 15 months from account opening on purchases and balance transfers.
Credit score
Good to Excellent670–850
Regular APR
18.99% – 28.49% variable
Annual fee
$0
Welcome bonus
Earn $200 cash back
See rates and fees. Terms apply. Member FDIC.
Read our Chase Freedom Unlimited® review.
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
Valuable welcome bonus and high rewards rates
Long intro APR for purchases and balance transfers
No annual fee
Has a foreign transaction fee
Few rewarding ongoing benefits
Highlights
Intro Offer: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.99% – 28.49%.
No annual fee – You won’t have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
Can help prevent extra interest payments
Carrying a credit card balance from month to month typically means you’re being charged interest on the unpaid portion, and credit card interest often accrues daily, not just at the end of the month. This means that every day you continue to carry a balance, you’re owing more and more money, thanks to compounding interest.
By paying your card at least twice a month, or even more often, you can reduce the amount of daily compound interest you’ll be charged. If you owe money in the thousands, this could be a substantial amount of savings each day.
If you’re planning on making a large purchase that may take you longer to pay off, you could consider using a 0% APR credit card to make sure you aren’t hit with interest payments right at the start. The Wells Fargo Reflect® Card (see rates and fees) offers an intro-APR period of 21 months from account opening for both balance transfers and purchases, and comes with a no annual fee.
Wells Fargo Reflect® Card
CNBC Select Rating
4.3
On Wells Fargo’s site
CNBC Select Rating
4.3
On Wells Fargo’s site
Spotlight
This card offers one of the longest introductory APR periods for purchases and qualifying balance transfers.
Credit score
Good to Excellent670–850
Regular APR
16.99%, 23.49%, or 28.74% Variable APR
Annual fee
$0
Welcome bonus
None
See rates and fees. Terms apply.
The Wells Fargo Reflect® Card can help you save on interest charges thanks to its extra generous intro-APR offer on purchases and balance transfers.
Best-in-class intro-APR for purchases and qualifying balance transfers
No annual fee
Cell phone insurance: up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible
No rewards
No welcome bonus
High balance transfer fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 16.99%, 23.49%, or 28.74% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min: $5.
$0 annual fee.
Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Through My Wells Fargo Deals, you can get access to personalized deals from a variety of merchants. It’s an easy way to earn cash back as an account credit when you shop, dine, or enjoy an experience simply by using an eligible Wells Fargo credit card.
Balance transfer fee
5%, min: $5
Foreign transaction fee
3%
Drawbacks of multiple payments
While paying off your credit card twice a month can be a good way to manage finances for some people, there are still negative aspects to be aware of.
Could create confusion
If you pay off your credit card multiple times per month, it becomes even more important to track when you paid and how much. Between due dates, current balances vs. statement balances, minimum payments and more, credit cards can be a lot to keep track of. While overpaying your credit card typically isn’t too bad, underpaying could be expensive, so make sure you’re tracking your payments well.
Less available cash
For many people, credit card bills are just one of the several expenses they pay each month, and if you’re paying your card more frequently, you still need to cover your other costs. Additionally, by parting with your money sooner rather than later, you’re missing any potential gains it could have earned you. If you let that money sit in a high-yield savings account such as a UFB Portfolio Savings account, you could be earning over a healthy APY with no monthly maintenance fees.
UFB Portfolio Savings offered by Axos Bank®, a Member FDIC.
UFB Portfolio Savings offered by Axos Bank®, a Member FDIC.
Annual Percentage Yield (APY)
4.01% APY
Minimum balance
$0, no minimum deposit or balance needed for savings
Fees
No monthly maintenance or service fees
Overdraft fee
Overdraft fees may be charged, according to the terms; overdraft protection available
Terms apply.
Read our UFB Portfolio Savings review.
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