On 11/18/2023 2:33 PM, [email protected] wrote:
Ah. I think I see my error.
When I get a credit card bill, I should open the credit card account and enter
each line item as a transaction. I should be able to check my work by comparing
the balance on the account with my bill (I always pay in full every month).
Then as you say, paying the bill is a simple transaction between the bank
account and credit card account.
Have I understood correctly?
Thank you for your patience.
Tim
In theory, you enter transactions as you make them. But there is no
actual need to be entering transactions "real time". If you wait till
you see the statement, remember the correct date to use (for each
charge) would be the transaction date (not the posting date and
certainly not the date of the statement). HOWEVER --- you are losing
information during reconciliation << that's more important with you bank
account >> Also note that delayed entry is safe only when your credit
limit is WAY more than you might charge in a month. If you have to
consider the credit limit, enter transactions as you make them. .
Good for you on paying the balance each month. I also treat our credit
cards as a "30 day net account". Why pay interest? For those who respond
"then why not pay cash or debit card?" note that these days many things
require "by credit card" and you might also have greater fraud
protection. Since have to use credit card for some, why not all. As long
as you can resist the temptation to not pay the entire balance.
Michael D Novack
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