# Handling Credit Cards in YNAB

> Explore how credit cards function in YNAB recognizing that spending decisions are based on category Available amounts not the payment method itself Learn the

Source: https://support.ynab.com/en_us/handling-credit-cards-overview-ry7cNub1s

Last updated: 2026-09-02T16:57:10.552Z

Explore how credit cards function in YNAB, recognizing that spending decisions are based on category Available amounts, not the payment method itself. Learn the expected flow of funds: assign money to the purchase category, use a credit card to make a funded purchase, and YNAB automatically moves the money from the purchase category to the related Credit Card Payment category. Identify the specific scenarios when you may need to also assign money directly to the Credit Card Payment category.

#### In This Article

[How to Add a Credit Card Account](#process)

[How Credit Cards Work in YNAB](#how)

[Do I Need to Assign Money Directly to My Credit Card Payment Category?](#assign)

[How to Close a Credit Card Account](#process-close)

* * *

## How to Add a Credit Card Account

Do you already have a credit card account set up, but need to make a change? Head to the following articles if you've [updated your bank credentials](https://support.ynab.com/en_us/i-cant-connect-to-my-bank-S1zEJ8TPge) or gotten a [new or replacement card](https://support.ynab.com/en_us/i-received-a-new-or-replacement-credit-card-By3YkIavlg).

### iOS

1.  Tap the _Accounts_ tab.
    
2.  Tap _Add Account_. 
    
3.  Search for your bank or click on one of the popular options to [link to a bank connection and import transactions](https://support.ynab.com/en_us/linked-accounts-B1991f2Cc). Or, select _Add an Unlinked Account_ to enter your own transactions.
    
4.  Enter a nickname for the account. 
    
5.  Select the **Credit Card** [account type](https://support.ynab.com/en_us/account-types-an-overview-BkmGM0qCq).
    
6.  Enter today's current balance and tap the checkmark. (If you linked the account, your balance should import automatically.)
    
7.  Tap _Next_. 
    
8.  You're all set! Tap _Done_ and your account (and corresponding Credit Card Payment category) will be created.
    

Read on to learn more about [how credit cards work in YNAB](#how), including [how your Credit Card Payment category can be funded](#assign).

### Android

1.  ⁠Tap the _Accounts_ tab.
    
2.  Tap _Add Account_. 
    
3.  Search for your bank or click on one of the popular options to [link to a bank connection and import transactions](https://support.ynab.com/en_us/linked-accounts-B1991f2Cc). Or, select _Add an Unlinked Account_ to enter your own transactions.
    
4.  Enter a nickname for the account. 
    
5.  Select the **Credit Card** [account type](https://support.ynab.com/en_us/account-types-an-overview-BkmGM0qCq).
    
6.  Enter today's current balance. (If you linked the account, your balance should import automatically.)
    
7.  Tap _Next_. 
    
8.  You're all set! Tap _Done_ and your account (and corresponding Credit Card Payment category) will be created.
    

Read on to learn more about [how credit cards work in YNAB](#how), including [how your Credit Card Payment category can be funded](#assign).

### Web

1.  Click the _Add Account_ button near the bottom of the left sidebar.
    
2.  Search for your bank or click on one of the popular options to [link to a bank connection and import transactions](https://support.ynab.com/en_us/linked-accounts-B1991f2Cc). Or, select _Unlinked_ to enter your own transactions.
    
3.  Enter a nickname for the account. 
    
4.  Select the **Credit Card** [account type](https://support.ynab.com/en_us/account-types-an-overview-BkmGM0qCq).
    
5.  Enter today's current balance. (If you linked the account, your balance should import automatically.)
    
6.  Click _Next_. 
    
7.  You're all set! Click _Done_ and your account (and corresponding Credit Card Payment category) will be created.
    

Read on to learn more about [how credit cards work in YNAB](#how), including [how your Credit Card Payment category can be funded](#assign).

[Back to Top](#backtotop)

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## How Credit Cards Work in YNAB

When you spend money on a credit card, you create a little bit of debt. You owe the money. Did you pick up the perfect $70 basket of in-season fruit? Debt. Did you buy a $0.35 pack of gum? Also debt.

The important thing is that you reserve the money to pay off that debt, and **that is what your YNAB plan is designed to do.** Here's how to get it done, using your groceries category as an example:

1.  When you add a credit card account to YNAB, a corresponding Credit Card Payment category is automatically created.
    
2.  Plan for your fruit (or gum!) by assigning money you already have to your Groceries category.
    
3.  When you use your credit card to make that purchase, enter an outflow transaction in your credit card account register.
    
4.  YNAB automatically moves the money to cover the gum purchase **from** your Groceries spending category **to** the Credit Card Payment category. Automatically.
    
5.  Your money sits in your Credit Card Payment category, twiddling its thumbs until you [make your payment](https://support.ynab.com/en_us/credit-card-payments-a-guide-r1_506Q1j).
    

**Want to set your credit card up to pay off over time?** You can [create a target](https://support.ynab.com/en_us/how-to-use-targets-rk5kkI9ks) for your credit card account to help you do this! If you've just made a charge you can't pay off right away, [Intentional Credit Card Overspending](https://support.ynab.com/en_us/intentional-credit-card-overspending-an-overview-HJrSQbOC9) walks you through how to handle it in your plan. Check out our tips for [making a debt payoff plan](https://support.ynab.com/en_us/getting-out-of-debt-ByMlJW_C9) and handling [credit card interest](https://support.ynab.com/en_us/paying-down-a-credit-card-balance-over-time-SkWj0Ls8Me), too.

**Returning an item purchased on a credit card?** Check out [Credit Card Refunds and Returns](https://support.ynab.com/en_us/credit-card-refunds-and-returns-H1J7qDWkj).

#### Use the same categories

Be sure to use the same categories for both cash and credit card spending. The only exception is if you're using credit cards to bridge gaps between paychecks. If this is a regular occurrence for you, check out [The Credit to Cash Roadmap](https://support.ynab.com/en_us/the-credit-to-cash-roadmap-r11FgcqJx) to learn how to handle that situation. 

### How this Appears in YNAB

### iOS

Is there enough money available in your Grocery category for the fancy meal you'd like to cook? Great. That Available column is your source of truth. In this image, you have enough money assigned to the Grocery category, so when you use your credit card for the $70 purchase, this is considered **Funded Spending**. Notice how the amount of the purchase moves automatically up to the Credit Card Payment category. This sets you up to have exactly the right amount to send back to the credit card company in your payment.

![70 dollars has moved from the grocery category’s available amount, to the credit card payment category's available amount](https://cdn.bfldr.com/NIEXAZS5/at/kznmfgjkh5hr6649fpj4z6q/CC-Basics-iOS-Help-Article.png?auto=webp&format=png)

#### Did You Hide Your Credit Card Payment Category?

It’s really important to keep the Credit Card Payment category visible in your plan, rather than hidden.

**Hiding the category doesn’t stop it from behaving in the way described here**, so keeping it visible will allow you to stay in control.

Plus, keeping an eye on the Credit Card Payment category can help you ensure you’re on track for your next payment - whether that’s [paying it off in full](https://support.ynab.com/en_us/paid-in-full-credit-cards-a-guide-Hk56hPMyo), a minimum payment, or somewhere in between.

### Android

Is there enough money available in your Grocery category for the fancy meal you'd like to cook? Great. That Available column is your source of truth. In this image, you have enough money assigned to the Grocery category, so when you use your credit card for the $70 purchase, this is considered **Funded Spending**. Notice how the amount of the purchase moves automatically up to the Credit Card Payment category. This sets you up to have exactly the right amount to send back to the credit card company in your payment.

![70 dollars has moved from the grocery category's Available amount to the Credit Card Payment category's Available amount](https://cdn.bfldr.com/NIEXAZS5/at/mq2893986rfbwptk85ng7xt/CC-Basics-Android-Help-Article.png?auto=webp&format=png)

#### Did You Hide Your Credit Card Payment Category?

It’s really important to keep the Credit Card Payment category visible in your plan, rather than hidden.

**Hiding the category doesn’t stop it from behaving in the way described here**, so keeping it visible will allow you to stay in control.

Plus, keeping an eye on the Credit Card Payment category can help you ensure you’re on track for your next payment - whether that’s [paying it off in full](https://support.ynab.com/en_us/paid-in-full-credit-cards-a-guide-Hk56hPMyo), a minimum payment, or somewhere in between.

### Web

Let's say you're buying ingredients to meal prep. Is there enough money available in your Grocery category for this purchase? Great. That Available column is your source of truth. In this image, you have more than enough money assigned to the Grocery category, so when you use your credit card for the purchase, this is considered **Funded Spending**. Notice how the amount of the purchase ($70) moves automatically up to the Credit Card Payment category. This sets you up to have exactly the right amount to send back to the credit card company in your payment.

![70 dollars has moved from the groceries category’s Available amount to the Credit Card Payment category's Available amount.](https://cdn.bfldr.com/NIEXAZS5/at/69b3tbpc6g46sxgts2wk39g/CC-Basics-Web-Help-Article.png?auto=webp&format=png)

#### Did You Hide Your Credit Card Payment Category?

It’s really important to keep the Credit Card Payment category visible in your plan, rather than hidden.

**Hiding the category doesn’t stop it from behaving in the way described here**, so keeping it visible will allow you to stay in control.

Plus, keeping an eye on the Credit Card Payment category can help you ensure you’re on track for your next payment - whether that’s [paying it off in full](https://support.ynab.com/en_us/paid-in-full-credit-cards-a-guide-Hk56hPMyo), a minimum payment, or somewhere in between.

[Back to Top](#backtotop)

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## Do I Need to Assign Money Directly to My Credit Card Payment Category?

With the way credit cards work in YNAB, we typically only need to assign money to the **purchase** categories. For example, like in the Funded Spending example above, if you've assigned money to the Groceries category, when you make a grocery purchase with your credit card, the amount will automatically move from the Groceries Available amount up to the Credit Card Payment category's Available amount. But there are a few scenarios when, yes, you may need to [assign money directly](https://support.ynab.com/en_us/assigning-your-money-a-guide-SypgkrNJi) to the Credit Card Payment category.

### Scenarios When You Would Assign Directly to the Credit Card Payment Category

*   **Paid in full cards**If you [pay your balance in full each month](https://support.ynab.com/en_us/paid-in-full-credit-cards-a-guide-Hk56hPMyo), you'll assign funds to cover the starting balance on the card. Basically, when you first set up your credit card in YNAB, you need to directly assign the pre-YNAB balance on your card to the Credit Card Payment category. So, if you start with a balance of -$375, since those purchases took place **before** you were in YNAB, no money moved automatically for you to the Credit Card Payment category. You'll need to manually assign $375 to the Credit Card Payment category to ensure you're set to pay the card in full.
    
*   **Additional payments**If you're wanting to pay something extra towards the debt you're carrying on the card, you can go ahead and add funds to the Assigned column for any **additional** payment you'll make to the card's balance. 
    
*   **Credit Card Overspending**If you have [overspending on the card](https://support.ynab.com/en_us/credit-card-overspending-an-overview-HkMGpSbJs) that didn't get covered in a **previous** month, your Credit Card Payment category will display an [Underfunded Alert](https://support.ynab.com/en_us/underfunded-cc-alert-a-guide-rkeh40G5h) in the current month. You will need to assign funds directly to the Credit Card Payment category to cover that unfunded spending.
    
*   **Overpayments and positive balances**If an overpayment to your credit card makes your balance go positive, things work a bit differently! Until the card's balance dips back into the negative, no money will move automatically to the Credit Card Payment category—YNAB knows you don't need to pay that money back and no new debt is being created. Review [Credit Cards with a Positive Balance: An Overview](https://support.ynab.com/en_us/credit-cards-with-a-positive-balance-an-overview-By_H6uzJo) for more specifics on this unique scenario. 
    
*   **Outflow balance adjustments**This would be a balance transfer where you're moving money or balances from one credit card to another. Money will **not** move between Credit Card Payment categories automatically. You'll need to assign the money manually to the corresponding Credit Card Payment category to reflect this change. [How to Make a Credit Card Balance Transfer](https://support.ynab.com/en_us/how-to-make-a-credit-card-balance-transfer-ry5ETLWJo) has more info!
    

[Back to Top](#backtotop)

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## How to Close a Credit Card Account

### iOS

1.  Tap the _Accounts_ tab.  
    
    ![Accounts icon is highlighted in the iOS Tab bar](https://cdn.bfldr.com/NIEXAZS5/at/2mpzqv9wf58k6f53bcknvj5/Accounts-Tab-iOS-Help-Article.png)
2.  Tap the name of the account you'd like to close.  
    
    ![Account named Credit Card highlighted in list of Credit Card accounts](https://cdn.bfldr.com/NIEXAZS5/at/pjch8c4m58pjrp3cpjx4b6w/Account-Name-Tab-iOS-Help-Article.png)
3.  Tap the three dots icon at the top of the screen.  
    
    ![Three dots icon is highlighted in upper right corner](https://cdn.bfldr.com/NIEXAZS5/at/4r44gb2r5kn35xsb3v2jtp7s/Three-Dots-iOS-Help-Article.png)
4.  Tap _Edit Account_.  
    
    ![Edit Account highlighted in three dots menu](https://cdn.bfldr.com/NIEXAZS5/at/kfbn8pfb6tq67btttkt46njr/Edit-Account-iOS-Help-Article.png)
5.  Tap _Close Account_ at the bottom of the Edit Account window.  
    
    ![Close Account button highlighted in Edit Account window](https://cdn.bfldr.com/NIEXAZS5/at/p34st9kjw34v8hc8c9j9m6g/Close-Account-iOS-Help-Article.png)
6.  If the account balance is above zero, you'll be prompted with a warning that the balance will need to be zeroed out with an adjustment transaction. Tap _Adjust Balance and Close_.  
    
    ![Balance adjustment warning highlighted](https://cdn.bfldr.com/NIEXAZS5/at/mmmmqxfc9f8qqv3bwkb9sr25/Adjust-Balance-iOS-Help-Article.png)
7.  Hide the related Credit Card Payment category.
    
    1.  Tap the _Plan_ tab.
        
    2.  If necessary, [move money](https://support.ynab.com/en_us/moving-money-in-your-plan-ryyCKbBJi) until the available amount is $0.
        
    3.  [Hide the category](https://support.ynab.com/en_us/adding-removing-and-customizing-categories-a-guide-HJFO5j909#hide).
        
        1.  Tap on the category. 
            
        2.  Tap _Details._
            
        3.  Tap _Hide Category_.
            

### Android

1.  Tap the _Accounts_ tab.
    
2.  Tap the name of the account you'd like to close.
    
3.  Tap the three dots icon at the top of the screen.
    
4.  Tap _Edit Account_.
    
5.  Tap _Close Account_ at the bottom of the Edit Account window.
    
6.  If the account balance is above zero, you'll be prompted with a warning that the balance will need to be zeroed out with an adjustment transaction. Tap _Adjust Balance and Close_.
    
7.  Hide the related Credit Card Payment category.
    
    1.  Tap the _Plan_ tab.
        
    2.  If necessary, [move money](https://support.ynab.com/en_us/moving-money-in-your-plan-ryyCKbBJi) until the available amount is $0.
        
    3.  [Hide the category](https://support.ynab.com/en_us/adding-removing-and-customizing-categories-a-guide-HJFO5j909#hide).
        
        1.  Tap on the category. 
            
        2.  Scroll to the bottom. 
            
        3.  Tap _Hide Category_.
            

### Web

1.  From the **web app**, in the left sidebar, hover your mouse pointer over the name of the account you'd like to close.
    
2.  Click on the edit (pencil) icon to bring up the Edit Account window.
    
3.  If the account has transaction history, the _Close Account_ button will be available (you may need to scroll down). We highly recommend closing accounts when this option is available. It will retain the transaction history for your plan—keeping everything running smoothly.
    
4.  If the account balance is above zero, you'll be prompted with a warning that the balance will need to be zeroed out with an adjustment transaction. Tap _Adjust Balance and Close_.
    
5.  Hide the related Credit Card Payment category.
    
    1.  Click on _Plan_ in the left sidebar (located immediately below the name of your plan).
        
    2.  If necessary, [move money](https://support.ynab.com/en_us/moving-money-in-your-plan-ryyCKbBJi) until the Available amount is $0.
        
    3.  [Hide the category](https://support.ynab.com/en_us/adding-removing-and-customizing-categories-a-guide-HJFO5j909#hide) by double clicking on the category name and clicking _Hide_.
        

[Back to Top](#backtotop)

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