How does a credit card work?
Credit Card Payments
When processing is complete, you will get a charge on your credit card account that you have to pay back. This will probably be removed from your balance right away, but it may not show up on your credit card statement until several days later. This is the “bill” for your credit card, which highlights all of your transactions and payments for the month.
Most credit card companies will offer several ways to make payments. You could:
- Pay online
- Pay over the phone
- Pay through the mail
- Pay at a store or bank
- Pay with another card (through a balance transfer)
- Pay through an auto-debit (where the company takes money directly from your bank account or pay check)
You will at least need to make a minimum payment for every month that you have a balance on your card. If you do not owe any money, you obviously won’t have to pay anything. If you fail to make your payments on time or you simply cannot make your payments all at once, you will have to pay several extra fees beyond the minimum payment. Your minimum monthly payment will vary in value based on your credit card, but it is usually 2% of the balance or $15 (whichever is higher).