Credit Card Payments and Loan Payments

Iggz25

How should these be categorized? I.E. I've a Bank Account and a CC Account. When a payment is made from bank account to CC account, should it be listed as a transfer or as category CC payment? My issue is if categorized as transfers it then doesn't show up on reports as a CC payment EXPENSE. Do i've to split and then also break down interest and principal? or is interest on a CC just part of principal?

For loans similar question but I'm assuming it needs to be split between principal & interest.

NotACPA

Paying your CC bill is a Transfer. It lowers your bank account, but also reduces the amount you owe on the card.

The balance in the CC account should be RED, indicating that you owe the card company money. This payment will make the balance in the CC account less negative.

Any interest in the CC account should be posted as a charge in that account. The bank charged you that amount.

CaliQkn

@Iggz25 Credit card payments are not really expenses. They are payments for expenses. The items you purchase with the credit card are the expenses. That is why credit card payments usually made as a transfer from your checking account to your credit card account and not noted as an expense.

The interest charged on a credit card is an interest expense that is a separate transaction and not part of a P & I split.

For loans, the P & I split will be noted in the loan payment transaction in your checking account (usually). The principal portion is a transfer from your checking account to your loan account to pay down the loan. The interest portion is a loan interest expense. When you set up a loan on Quicken, standard loan categories will be created for the principal payment and interest expense.