Tuesday, June 14, 2022
HomeDebt FreeDoes a bi-monthly payment make a difference?

Does a bi-monthly payment make a difference?


I’ve become far less concerned with my credit score since I purchased my house last year. But I still do follow a couple of credit repair or best practice experts and based on their advice and posts, keep an eye on what I’m doing. One of the things I see consistently is to make multiple payments a month. This not only positively affects your credit score, but also cuts down the interest you are paying.

Even my mortgage company offers this as a pre-set option, essentially breaking my monthly mortgage payment in two. Instead of paying $660 per month, I am paying $330 every two weeks. (I love playing with their amortization calculator to figure out how extra payments and such affect my mortgage in the long run.)

While I don’t have to “worry” about my credit score anymore with no need for credit/debt, I do still want to improve it while at the same time continuing to climb out of debt. I doing pretty well at other strategies like keeping my credit card debt under 30%, easy to do when you are paying it off every month, not applying for new credit and paying bills on time.

I guess my question is twofold:

  1. Does doing bi-monthly payments, specifically on your mortgage, really make that big of difference in the grand scheme of things?
  2. Does doing bi-monthly payments on other debt do the same thing? (I know it won’t make a difference on my medical debt as those are interest/fee free.)

I’d love to know if the strategies these experts harp on real or if they are just blowing smoke. No, I have no need of a credit repair service. But I am still working to gain knowledge.

I would love the BAD communities thoughts on this strategy that seems to be a positive for 1) decreasing the interest you pay in the long run and 2) increasing your credit score somehow.



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