Can making two credit card payments a month save you money?

For the millions of Americans carrying credit card debt, making progress on their balances feels increasingly difficult in today's landscape. Part of the issue is that the interest rate on the average credit card is above 22% currently, meaning that if you're carrying a balance from month to month, a significant portion of each monthly credit card payment goes toward interest rather than reducing what's owed. But with everyday expenses continuing to strain household budgets, finding extra money to put toward those balances isn't always realistic.

Case in point? A recent Freedom Debt Relief study shows that of the borrowers with substantial debt, 28% can only afford to make the minimum-required payments, while 20% are behind on at least one account. In turn, it's particularly important for borrowers to find ways to reduce borrowing costs right now. While transferring a balance to a lower-rate card or consolidating debt with a personal loan may help, those approaches aren't necessarily accessible to everyone. 

Fortunately, changing how you approach your existing credit card payments is another option to consider. One strategy that could be worth examining is making two payments each month instead of one. But can making two card payments every month really save you money on interest charges? That's what we'll examine below.

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Making two credit card payments per month can potentially save you money on interest. Still, the amount depends on your balance, interest rate, payment timing and whether you're paying more than the required minimum. Here's what to know:

You may reduce your interest charges

Most credit card issuers calculate the interest charges you owe each month using your average daily balance. That means the amount you owe throughout your billing cycle, rather than just on your payment due date, helps determine how much interest accrues.

Making an additional payment earlier in the billing cycle can lower your balance sooner, potentially reducing the interest charged. For example, if you typically make a $400 payment at the end of the month, paying $200 halfway through the month and another $200 on your regular payment date could reduce your average daily balance.

The savings from changing the timing alone may be modest, however. And if you're already paying your statement balance in full each month and maintaining your purchase grace period, splitting payments generally won't provide additional savings.

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You could pay off your debt faster

Making two payments can also accelerate debt repayment, particularly if the strategy encourages you to contribute more than you otherwise would. For example, someone who typically pays $250 monthly might instead make two $150 payments. That increases their total monthly contribution to $300, putting an additional $600 toward their debt over a year.

Those extra payments can reduce the principal credit card balance faster, which also lowers future interest charges. Over time, that combination could shorten the repayment period and reduce the total cost of carrying the debt.

Your credit score could benefit

Another potential advantage of making two credit card payments each month involves your credit utilization ratio, which measures how much of your available revolving credit you're using. Lower utilization can help your credit score.

Credit card issuers typically report account balances to credit bureaus around the statement closing date, though reporting schedules vary. Making an additional payment before that date could reduce the balance reported, potentially improving your utilization ratio.

That benefit isn't guaranteed, however, and, as noted, it doesn't necessarily translate into immediate interest savings, either. Payment history and other factors also influence credit scores, so it's important to keep that in mind if you're relying on this approach to improve your credit.

How to make two monthly credit card payments work for you

While splitting your credit card payments into two each month can be useful, getting the most from the strategy requires more than simply sending money to your issuer twice a month.

To start, try to time your payments strategically. Consider making one payment shortly after receiving your paycheck and another before your credit card statement closes. Paying earlier can help reduce your average daily balance, while paying before the closing date may lower your reported utilization.

You may also want to pay more on what's owed whenever possible. Splitting your usual payment into two installments may produce limited savings, but increasing the total amount you pay each month can have a much greater impact on your balance and interest costs.

Don't overlook your due date, either. Making an early payment doesn't necessarily eliminate your obligation to satisfy the minimum payment by the due date. So, check your account to ensure you've met the card issuer's requirements and avoid late fees.

In some cases, it may also make sense to consider other debt repayment options instead. If your balances remain difficult to manage despite making frequent payments, a balance transfer card, debt consolidation loan or even working with a credit counselor or debt relief expert may provide more meaningful relief. Each option has different costs, eligibility requirements and potential drawbacks to consider, though.

The bottom line

Making two credit card payments each month can help reduce interest charges, support faster debt repayment and potentially improve credit utilization. However, the biggest savings generally come from paying down your balance earlier and contributing more money toward your debt, not simply increasing the number of payments.

Before changing your payment schedule, also make sure to review your credit card's billing cycle, interest rate and minimum payment requirements. A strategy that fits your cash flow and consistently reduces what you owe is ultimately more valuable than the number of payments you make each month.