Should I set up credit cards as credit or liability?

Mike Damuth

Should I set up credit cards as credit or liability?

CaliQkn

@Mike Damuth you usually want to set up your credit cards with an Account Type = Credit.

In Quicken, credit card accounts and liability accounts both track debt, but they serve slightly different purposes and are categorized differently by default:

• Credit Card Account: This is a specialized type of liability account designed specifically for tracking credit card transactions. It behaves like a spending account—you enter charges and payments just like you would in a checking account. Quicken places these under the Banking group because they’re used frequently for day-to-day spending and budgeting.
• Liability Account: This is a broader category used for tracking other types of debt, like mortgages, car loans, or personal loans. These accounts are typically less transactional and more structured around scheduled payments. They’re grouped under Property & Debt and are ideal for long-term liabilities.