Credit card balances

Question

:/ I've been using Quicken for a while now but the one thing that continues to flummox me is the balance bar for credit card accounts.  It never goes to 0, even when I pay my card(s) in full, it just continues to accumulate, almost like it's only adding, not subtracting.  I don't know how to explain it, but I figure if you've experienced it, you know it.  And if you have, can you help me figure out what I'm doing wrong?  It's very confusing.  Thanks.  :)

volvogirl · Answer

Are you downloading transactions?  Or entering everything manually?  I wouldn't expect a credit card register balance ever to go to zero.  Even if you paid the bill in full there are current charges after the bill cut off.  My cc bill is on the 5th of the month.  I pay it a couple weeks later.  But between the 5th and when I pay it there will be new charges posted.

Or are the payments never reducing the balance due?

NotACPA · Answer

How are you recording your payments to this credit card account?  They SHOULD be recorded in your checking account with the category shown as the account name, enclosed in square brackets.  E.G. [Card Account Name].  This is known as a TRANSFER, as indicated by the square brackets.
I suspect that you're using a non-transfer category of some sort for your payment transactions ... so the card balance NEVER goes towards $0, only more and more negative as you record more card purchases.