Credit Card Payments Explained (Beginners Guide)

How do credit card payments work?
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How do credit card payments work? Typically cards have 4 different payment options that I'll explain in this video. You've got the minimum payment option, statement balance, outstanding balance and "any amount". I'll briefly cover each payment type. Hopefully you'll understand a bit more the next time you make a payment on your credit card. And please remember to pay off your statement balance in full every month by the due date and you won't be charged any interest.

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#honestfinance #creditcards

[HonestFinance]

I hope you learned something new about your credit card payments.

[americanbanana]

I watch your channel often. I make my kids watch it 😂😂 They get mad cuz it’s “boring” but they’re catching on. This isn’t taught in schools as it should be.

[sbusisothekiso]

I’m 19 and this is super helpful in my financial literacy journey!! Thanks so much man

[taniazainudin]

I'm a new credit card user and this was extremely useful for me! Thank you so much.

[Alex-sgyz]

it can be boring but man, so is school! education is key to success 💯

[ajayharry]

FINALLY, a video that explains as simple as possible, thanks mate, you have no idea how long I’ve tried to find a video like this

[KSCasareo]

Appreciate how easy it is to take notes. Just got a credit card and writing down notes as reference will always be a life saver in the future. Heck, I'll keep these notes when my little brother gets his credit card in a couple of years.

[forgotten]

Thanks for clarifying. People like you that make these videos are unsung heroes. I appreciate you 💜

[carolinaabril]

i’ve had credit for 5 years and i’m really strugglin to pay it off. i wanna cancel it but apparently it doesn’t work like that. trying to learn now to get out of debt. this is an awesome video!

[nmart]

I’m a fucking idiot. Thank you my man. Cleared a bunch of shit up for my smooth reptilian brain

[ryyjxwh]

Nice, informative and quick explanation. Thank you.

[aceofspades]

Thank you man, easy and to the point 🌹

[dynamict]

Thanks for this video. I shared it with a friend because they didn’t understand I try to explain as best, but I came across this one. Thanks much.

[itsjust._nalyn]

Thank you so much for explaining. I’m new user and this video will help how to used my new card. Please do more education videos in future you are great tutor god bless.

[gunsole]

Someone explain this to me.
My November CC statement balance is 20 bucks. I take out a no interest loan 4 days before paying the statement balance in full.
November Statement is paid and next month I expect to pay minimum payments with no interest.
December, I pay the minimum Payment with no interest. Unknown to me, my credit card had a "interest saver" payment option that was 20 dollars more than my minimum. I assume this is the 20 dollars I already paid. January my statement has my minimum payment but is accruing interest from that 20 dollars I paid back in November. How is this possible? There's no transactions since taking out the loan.
By the way I just realized it this month. I plan on paying the interest saver payment and letting it go. I got a Cashback deal I forgot about that more than paid the dollar I lost in interest.

[salmannaqvi]

So do you think if I will put my credit card on automatic payments on the 15th of every month and the payment amount is always last statement balance in full. I will be fine right? I don't have to worry about the interest or late payment then?

[patakaguddi]

Hello, I have a question about my credit card. I got a credit card with a $300 limit and the minimum I owe is $17.91.
It says: “Minimum Payment Warning: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance. The table is based on your standard minimum payment and does not include any past due and over limit amounts. For example:
If you make no additional charges using this card and each month you pay ... only the minimum payment
You will pay off the balance shown on this statement in about... 1 months
And you will end up paying an estimated total of ... $18.00”
Do I pay $17.91, $18.00, or more than that to avoid interest? And is it best to pay by the statement date or the due date? Or do I split it into paying half by the statement date and the other half by the due date? Also, would it be best to use my credit card every month?

[guccirosebabyxo]

I’m new to using credits card (18 years old here) my question is whenever I get my bill I pay it on time like usually the 12-14th of each month since I get the bill every 10th of the month. However on my bill it always says minimum payment $10 so I pay that along with the other payment and I didn’t know that minimum payment is not necessary if I’m already paying the full amount now I don’t know what to do since I’ve been paying the minimum amount the whole time when I didn’t have to? Any suggestions what I can do now? Thanks

[practicaIfolks]

so my minimum payments are due the 5th of each month. I try to pay the entirety of the current balance by the 5th, so that by the end of the billing cycle on the 6th, I have it at zero. What are your thoughts? 😊

[j_g]

I just got a credit card does paying the outstanding balance lower the amount you pay for your statement?