How to Pay a Credit Card Bill

Using credit cards is a necessity if you want to build a solid credit score. Lenders want to see that you can use different types of credit responsibly, and the only way to showcase that is to utilize certain credit accounts, like loans and credit cards, and let them report to the credit bureaus each month.

And as you use your credit cards to build credit -- or for any other reason -- you will eventually receive a bill in your email or mailbox for your charges. But how exactly do you pay that bill? Does it require you to mail in a check? Can you pay over the phone with your bank account information? Or, if you're low on cash, can you use another credit card to cover the charges?

If you've been wondering how the process works, here's what you should know about how to pay a credit card bill.

How to pay your credit card bill

Paying your credit card bill on time is extremely important, but in most cases, it's also extremely easy. All it takes is a few simple steps you can follow to get the job done.

1. Pay attention to the due date

After you receive your credit card bill, one of the first things you should do is look at the due date. You need to make your payment on time, every time, or you could be in for an unfortunate surprise.

A late credit card payment can have a few different adverse effects, including a hit to your credit score. Paying your card late on multiple occasions can also cause your credit card issuer to penalize you with a higher APR or closure of your account.

So, as soon as you get your bill, be sure to pay attention to when it's due. You'll need to get your payment sent over to your credit card company before that date -- and depending on the method you choose to pay with, you could need some extra time to do so.

2. Decide how much you want to pay

Start by deciding how much you want to pay. You have a few different options here, including:

• The minimum payment. This is the minimum amount you're required to pay to stay in good standing with your credit card company. Your minimum payment is usually just a fraction of your total balance. If you don't make the minimum payment, you'll likely be charged a late fee, a penalty APR, or both. And if you make your minimum payment later than 30 days after it was due, you may also end up with a delinquent payment listed on your credit report.
• The statement balance. When you pay your statement balance, you're "paying in full." This means you're paying for the total amount of charges made during your previous billing cycle, plus any outstanding balance that you owed from prior billing cycles.
• The current balance. When you pay the current balance, you're paying the total amount you owe for the charges that have cleared your account. What that means is that the charges that haven't cleared your account during that billing cycle will be owed the following bill cycle.
• A custom amount. Your card issuer may also allow you to pay a custom amount, which is precisely what it sounds like. It's the amount you choose to pay on the account.

The amount you choose to pay all depends on what works best for your credit card repayment plans. If you can afford to pay the full statement balance, that's often the best way to tackle your credit card bill because it removes any interest charges from the equation.

On the other hand, if you can only afford to pay the minimum amount and you aren't using a card with a 0% intro APR, you'll have to pay for the credit card interest that accrues on the balance.

3. Choose a payment method

Before you attempt to make a payment on your credit card, it's also important to understand what payment options you have for tackling your bill. Each card issuer will typically offer at least a few different payment options, which may include:

• An ACH transfer from your bank account
• Online bill pay through the website or app via your bank account
• In-person cash payments at an authorized financial institution, like a bank or credit union
• A check mailed to the card issuer
• A money transfer that is wired to your credit card issuer
• A phone payment via your checking or savings account

Any or all of these options may be available with your card issuer. What method you choose to use depends on your preference and the timing of when your bill is due. Some methods, like mailing a check, take a lot longer than paying your bill online.

That said, there is one thing you cannot do when paying your credit card, and that is to use another credit card to pay your bill. Credit card issuers don't allow it because it puts you at greater risk of running up lots of credit card debt -- and that puts you at higher risk of defaulting completely. So, you'll need to make sure you have enough cash in your bank account to cover your bill.

4. Complete the payment on or before the due date

If you're going to send a check for your credit card bill, you'll need to make sure you send it as early as possible. Snail mail is notoriously unreliable, and it can take a few extra days for the check to be processed and the money to be applied to your account. That's part of why your due date is so important.

If you want to use online bill pay via the credit card's website or app, you will have a lot more flexibility with the time frame in which you need to make your payment. These payments have almost no lag time, and unlike paper checks, they can be completed on the day they're due without any penalties, as long as they're made before the cutoff time.

The timeframes you need to work within for other types of payments, like in-person cash payments or money transfers, all depend on your issuer. Make sure you know what the cutoff times are for getting your payments in on time or you could end up with a late fee or penalty APR.

5. Set up autopay for future payments

If you're comfortable using the credit card issuer's website or app to pay your bill, you may also want to consider setting up autopay. By setting automatic payments, you won't have to worry about juggling due dates or getting stuck with late charges if you miss one. Your payments will automatically deduct from your checking account each month on the day you choose.

In some cases, your online credit card account also gives you access to other payment features, like due date changes or multiple automatic monthly payments. For example, you can move your credit card bill's due date so it falls on your payday, or you can change your payment settings so that you are making multiple payments on your card each month.

These features can come in handy when you're juggling other bills and accounts -- and will help ensure that you don't miss an important payment deadline.