Credit Card Payment - leave as transfer or add category?

Hello,
When reviewing my checking account, I noticed that the credit card payments appear to be entered as transfers. Should I change this to 'Bills and Utilities:Credit Card Payment"?
The CC are entered as an account and the statements are automatically downloaded. I do edit the CC statement and update the Categories for the individual charges.
Thanks,

Best Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited July 2021 Answer ✓
    Leave it as a Transfer as that's exactly what it is, a transfer of cash from your checking account to the financial institution that issued the credit card.  Changing that Transfer to a Category would result in a double counting of your expenses, once in the coding of the credit card charges and then again in this Category.
  • volvogirl
    volvogirl SuperUser ✭✭✭✭✭
    Answer ✓

    Just to make sure you are doing it right.......

    The proper way is to set up a credit card ACCOUNT and enter the charges into it when the purchase is made and assigning it to a category. Then when you pay the bill you TRANSFER the payment from your checking account to the credit card account. Then when you download the payment from the bank you match it to the one you already entered.  Then your credit card account should match what you actually owe at any time.


    When you enter the payment in your checking account you put the credit card account name in for the category using square brackets around the name to indicate it is a transfer...like this… [credit card] or newer versions have a Transfer column.

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited July 2021 Answer ✓
    Leave it as a Transfer as that's exactly what it is, a transfer of cash from your checking account to the financial institution that issued the credit card.  Changing that Transfer to a Category would result in a double counting of your expenses, once in the coding of the credit card charges and then again in this Category.
  • volvogirl
    volvogirl SuperUser ✭✭✭✭✭
    Answer ✓

    Just to make sure you are doing it right.......

    The proper way is to set up a credit card ACCOUNT and enter the charges into it when the purchase is made and assigning it to a category. Then when you pay the bill you TRANSFER the payment from your checking account to the credit card account. Then when you download the payment from the bank you match it to the one you already entered.  Then your credit card account should match what you actually owe at any time.


    When you enter the payment in your checking account you put the credit card account name in for the category using square brackets around the name to indicate it is a transfer...like this… [credit card] or newer versions have a Transfer column.

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