Which Is the Best Strategy for Paying Your Credit Card Bill?

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Key takeaways

Paying your credit card balance in full each month by the due date is the best way to avoid interest and stay debt-free.
If you cannot pay your statement balance in full, pay as much as possible to reduce your balance.
Debt relief strategies like the snowball or avalanche method can help you pay off multiple credit cards efficiently.

Inflation is affecting all aspects of life, including paying credit card bills. As prices for everyday items keep going up, more Americans depend on credit to manage. This leads to higher credit card balances that can be hard to pay off.

The Federal Reserve Bank of New York found that credit card balances had reached $1.21 trillion by December 2024. That’s up by $45 billion from the previous quarter.

With balances so high, it’s no wonder that consumers are wondering what the best way to pay off credit cards is. We are here to help you figure that out. Whether you want to learn how to pay off credit cards fast or how much to pay each month, we can guide you through the process.

Let’s start by discussing your credit card bill.

When should I pay my credit card bill?

The best time to pay your credit card bill is before the due date. If you pay after the due date, your provider will charge you a late fee. If your payment is over 30 days late, they will report the missed payment to the credit bureaus. The missed payment will lower your credit score by 20 to 100 points.

You do not have to wait till your due date to pay. You can pay down your balance throughout the month or pay your bill in full as soon as your statement closes.

When your statement closes, you have 21 to 25 days before the bill is due. This is called the grace period. Pay your balance during this time, and you will avoid any interest charges.

Another trick is to switch your due date to better align with your paycheck. Call your provider, and they will be happy to work with you. It may take one or two billing cycles to apply.

How to pay your credit card bill

You have four basic credit card payment options. Here’s what you need to know about each one.

Minimum payment on credit card

The credit card minimum payment is the smallest amount you must pay to keep your account in good standing. The total minimum payment due is typically only 1% to 3% of your balance or $25, whichever is greater.

Pay the minimum by the due date, and you will avoid late fees, penalty interest rates, and damage to your credit score. That said, you will accrue interest on the remaining statement balance.

Investopedia found that the median credit card APR was 24.20% as of March 2025. At this rate, you will accrue interest quickly. If possible, pay more than the minimum.

If you see “minimum payment due is 0” on your statement, you do not need to make a payment for that billing cycle. You most likely paid off your balance before the statement date. Double-check that your balance is at zero. If you have a balance, pay it off to avoid interest charges in the future.

Credit card statement balance

Your credit card statement balance is the total amount you owe at the end of a billing cycle. It includes purchases, fees, and interest. Pay the full statement balance by the due date to avoid paying interest.

Paying your statement balance on time and in full will improve your score and save you money.

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Pay the current balance

Your current account balance shows all the transactions made. It includes those made after your last statement closing date or any unpaid balance from the previous billing cycle. Your current balance is the total amount you owe on your card at any given time.

Knowing what the current balance on a credit card means can help you decide how much to pay. While paying your current balance is unnecessary, it can help you lower your credit utilization rate. A lower utilization rate will help boost your score.

Pay a custom amount

Paying a custom amount is helpful if you want to pay more than the minimum but cannot afford your full statement balance. You pay as much as possible to reduce your balance and save on interest.

It can be a smart choice if you have other debts to pay. For example, you might want to pay off a loan early while still handling credit card payments. You can lower your balance with payments that don’t strain your finances. Making consistent extra payments—even small ones—can help you reduce interest costs and pay off your credit card faster.

Should I pay off my credit card in full or leave a small balance?

One prevailing myth is that carrying a small balance is good for your score. In no way is this true. Never carry a balance if you can help it. Always pay your bills on time and in full.

Now, if the question is, “Is it better to pay off debt or save?” the answer depends on your financial situation. The rule of thumb is to save at least $1,000 for an emergency fund. Once you have a safety net, focus on paying off high-interest debt. Not saving first makes you vulnerable to accruing more debt if an emergency comes up.

Can I pay a credit card with another credit card?

Can you pay a credit card with a credit card? The answer is generally no—most issuers don’t allow this. There are workarounds. Apply for a credit card for a balance transfer and move your outstanding balance to the new card.

You could also take out a credit card cash advance and use it to pay your bill, but this is not a good idea. Cash advances have high interest rates and lots of fees.

What is the best way to avoid falling into debt?

The key to preventing credit card debt is to only charge what you can afford to pay for in cash. That way, you can always pay your statement balance in full and won’t accrue interest.

If this is unreasonable or you struggle to keep up with high balances, there are tricks to paying off credit cards.

How to pay off credit cards fast

The easiest way to pay off credit card debt depends on your financial situation. You can try to negotiate with creditors to lower your interest rate. You might also consider debt management plans to reduce your monthly payments. The best debt relief options vary depending on your finances, credit score, and ability to pay your bills.

Here’s how to get out of debt fast and avoid high-interest payments.

Debt snowball method

Many financial experts agree that the best way to pay off multiple credit cards is to use the debt snowball method. The snowball method involves paying off your smallest balance first while making minimum payments on the rest. As you clear each balance, you roll the payment amount into the next smallest debt, gaining momentum like a snowball. The small wins give a psychological boost and make staying motivated to pay off debt easier.

If you’re curious about how this method works, use a debt snowball method calculator. You can input your balances and minimum payments to see how quickly you’ll become debt-free.

Debt avalanche method

The avalanche method prioritizes paying off high-interest balances first. You target the most expensive debt while making minimum payments on others. It is the most cost-effective way to repay debt.

The decision between the avalanche vs. snowball methods depends on your financial priorities and motivation. Do you prefer faster progress or the most savings? Use the avalanche method if you’re disciplined and motivated by savings rather than quick wins.

Interest charges adding up fast?

You can lower your credit card interest rate!

Credit card balance transfer

A balance transfer is when you move outstanding balances to a new card with a lower interest rate. The idea is that you can pay off the debt faster since you’re not paying interest.

Many credit card balance transfer offers come with a 0% introductory APR for 12 to 21 months.

Look for a zero balance transfer credit card with no transfer fees and a long 0% APR period to get the best deal. Pay off the balance before the promotional period ends, or you’ll pay a regular APR.

Personal loan to pay off credit card

You take out a personal loan and use the proceeds to repay creditors. You end up with one monthly bill at a fixed interest rate.

Using a personal loan to pay off credit card debt can be a smart choice. This is because most personal loans have lower APRs than credit cards. If done right, you will save on interest.

A personal loan for credit card debt can help you pay off your debt faster and cheaper. But, it’s very important to avoid adding more charges. Stop using your cards. Otherwise, you’ll end up back where you started.

Another tip is to prequalify for a personal loan before you apply. When you prequalify, you can see your potential rates without affecting your credit score. You can compare offers and secure the best deal available.

Frequently asked questions

1. Why is it more difficult to get out of debt when only paying the minimum payment?

When you only pay the minimum, most of your payment goes toward interest rather than the principal balance. Since you still have a balance, you’ll accrue more interest, which can take years to pay off.

2. What is a reason to pay more than the minimum payment due on your credit statement each month?

Pay more than the minimum each month to reduce your balance faster. You will pay less interest, shortening the time it takes to become debt-free.

3. What is the minimum payment on a $3,000 credit card?

Your creditor sets the minimum payment. It is typically 1% to 3% of the balance or a fixed amount. For a $3,000 balance, it could range from $30 to $90, plus any interest and fees.

4. Is it better to pay off one credit card or reduce the balances on two?

Experts generally recommend focusing on paying off one card while making the minimum payments on the second card. If you pay off the card with the higher APR first, you’ll save money on interest. If one card has a high balance compared to its limit, paying it down first can lower your utilization. This can help improve your score.

5. How do you pay off multiple credit cards?

Use strategies like the debt snowball (paying off the smallest balance first) or the debt avalanche (paying off the highest-interest debt first). Making extra payments and consolidating with a balance transfer or personal loan can also help.

6. What is the best strategy to avoid paying interest on your credit cards?

If you pay your statement balance in full on time, you won’t have to worry about interest. Set up autopay or put payment reminders in your calendar so you don’t forget.

Bottom line

The best way to pay your credit card bill is simple: pay in full each month. By not carrying a balance, you can avoid high-interest charges. This helps keep your utilization low. You also won’t have to worry about credit card debt.

Not everyone can pay the statement balance in full every month. If you find yourself dealing with high balances, then different payment strategies can help. Look into DIY methods like avalanche or snowball, or try debt consolidation to save money on interest. There are plenty of ways to repay creditors and get back on your feet.

Once there, remember to treat your credit card like a debit card—spend only what you can pay off immediately. If you stick to this habit, you’ll improve your score and stay debt-free.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

2. Paycheck Advance is an earned wage access service and is not a loan or credit product.

3. Current is a financial technology company, not an FDIC-insured bank. FDIC insurance up to $250,000 only covers the failure of an FDIC-insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. Banking services provided by Choice Financial Group, Member FDIC, and/or Cross River Bank, Member FDIC. The Current Visa® Debit Card, which may be issued by Choice Financial Group and/or Cross River Bank, and the Current Visa® secured charge card, which is issued by Cross River Bank, are all issued pursuant to licenses from Visa U.S.A. Inc. and may be used everywhere Visa debit or credit cards are accepted. A Current debit account is required to apply for the Current Visa® secured charge card. Independent approval required.

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7. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.

8. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

9. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC.

10. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank.

11. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

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16. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.

17. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.

18. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

19. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

20. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

21. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

22. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

23. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

24. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

25. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

26. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

27. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

28. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

29. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

30. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

31. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

32. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

33. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

34. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

35. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

36. Tipping or not tipping has no impact on your eligibility for SpotMe®.

37. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

38. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.

39. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

40. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

41. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.

42. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.

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Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor’s credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor’s degree in journalism and an MBA.

Which Is the Best Strategy for Paying Your Credit Card Bill?

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When should I pay my credit card bill?