Consumer Loan Paid by Credit Card Monthly

Dick_Davis

I have a monthly consumer loan that is charged to a credit card. Typically, credit card charges are for categories. Here is the details –Loan is $122.07 per month and is charged to Credit Card. So, the Loan is to have a positive $122.07 payment and the Credit Card is for the negative ($122.07) charge. Quicken Simplifi wants to have two transactions (like paying from the Checking account for a credit card, one for the Loan for $122.07 and one for Credit Card for (122.07).

If I got with what is wanted, then the Westgate loan is decreased by the +$122.07 and the balance of the Barclays will be increased by the ($122.07) – Right? What would be an example of the two transactions?

DryHeat

@Dick_Davis

I'm assuming that you have a liability account for the loan (otherwise there would not be two transactions). I do not know if that loan account is connected online or not — perhaps you could tell me.

Paying on a consumer loan works exactly like making a payment on a credit card. The only complication is that you are making the payment from a credit card account, not a bank account. But it works the same.

You need to create a transaction in your credit card account (or modify a downloaded transaction) so that it shows a transfer FROM the credit card of $122.07 TO the loan account (which you select as the category). If you do it correctly, a newly created transaction will show up in the loan account as a positive $+122.07 (green, with a plus sign).

But to get this right you will need to split the transaction (assuming interest is charged) to show the interest as an expense. For example, if the interest this month is $2.00, then you would have a transfer split of $120.07 to the loan account and an interest expense split of $2.00.

If the loan account is connected it may already have a transaction that could match the credit card transaction — but it will only match if you have correctly adjusted for interest.