Credit Card Payments

Written by Jared Vincenti
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When you have a credit card, you can make purchases with the card and then pay the credit card company back for your purchases. The vast majority of credit cards require monthly payments, and issue statements on the same day of each month. You can usually set the date that your payments are due when you apply for the card.

Making your Payments

Each month, you will receive a statement of your account. It will show your last payment, as well as recent purchases made with the card. If you see a purchase on your credit card that you did not make, be sure to contact your credit card company as soon as possible. Many companies have fraud insurance, and if you report identity theft in a timely manner, you will usually be spared the charges made to your account.

Provided all the charges on your statement were made by you, you then must make a payment. You do not need to pay off all of the outstanding balance on your card, though. The statement will indicate the minimum amount due, which is just a fraction of your whole account balance. This amount must be paid (and on time) in order to keep your account current.

If you miss a payment, you will be charged a fee for a late payment. This amount will be added to your outstanding balance. If you miss more than one payment, you may be reported to a credit reporting agency--this will result in your credit score being lowered. Also, if you have a card with a variable APR, missing a payment may result in the interest rate on your card being raised.

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