How Often Do You Need to Review Your Credit Card Balances?

There's no actual rule, but here's good guidance to follow.

I remember getting a credit card bill years ago that was way higher than expected. When I looked at my statement, I realized in a single month, I had charged my flight and lodging for an upcoming vacation as well as a few out-of-the-ordinary purchases, like a new laptop, that drove my balance up.

Thankfully, I had a cushion in my checking account and was able to cover that bill in full. I also had money in my savings account to fall back on, though because that money is earmarked for emergencies, I'm hesitant to take withdrawals unless it's for something truly urgent or unexpected.

But that whopper of a credit card bill taught me an important lesson -- to check my credit card balances frequently. These days, I make a point to check my balances once a week. And you may want to as well.

An easy way to avoid going overboard

The danger of racking up too high a credit card balance is not being able to pay your bill in full. Once you carry a balance forward, you immediately accrue interest on it that makes your purchases cost more.

What’s more, if you accumulate too high a balance, you may reach the point where you can't even manage to make your minimum payment. That could have severe consequences, like sending your credit score plummeting. Even if you are able to make your minimum payments, the mere act of using too much of your available credit could also hurt your score.

That's why I now make a point to review my credit card spending on a weekly basis. If I see my balance growing at a faster pace than expected (say, a recurring charge pops up that I've forgotten about), it triggers a warning for me to cut back on spending until my billing cycle rolls over. If you commonly land in a situation where you're staring at a credit card balance you can't pay in full, you may want to get into the habit of checking your accounts every week.

In fact, if money is extremely tight, you may want to consider reviewing your credit card balances every few days, or even every day. If you're getting close to maxing out your credit cards, then a daily check-in is definitely reasonable until you've managed to chip away at some of your balances.

If you almost never come close to hitting your credit limit, you're consistently able to pay your monthly credit card bills in full, and you have a decent cushion in your checking or savings account for a higher-than-expected tab, then you may not have to check your credit card balances until your bills come due. Or, you might compromise and do a mid-cycle checkup.

It's also about peace of mind

For me, checking my credit card spending every week helps reassure me that I'm not forgetting about charges or racking up too many in short order. And that peace of mind is worth the few minutes it takes to check my balances.

If you feel you can benefit from a weekly credit card check-in, schedule one on your calendar until you get into the habit. You may find it improves your finances.