# Credit Cards

A credit card represents money you owe — making it a **liability type** account (yellow in Bkper). Setting it up this way lets you track the outstanding balance, payments, and interest charges accurately.

## Setting up the account

Create a **Credit Card** account as a liability alongside your other accounts.

## Recording expenses

When you charge expenses to the credit card, the **amount owed on the card increases**. Record each expense as a movement from the credit card account to the appropriate expense account.

## Recording a partial payment

When you make a partial payment, the **amount owed on the credit card decreases** by the amount paid.

| Date | Amount | From Account | | To Account | Description |
| --- | --- | --- | --- | --- | --- |
| 04/03/2017 | 255.00 | Bank Account | >> | Credit Card | Partial credit card payment |

For simplicity, the examples shown here use the same date in the screenshot, but they represent a sequence: expenses increase the amount owed, payments reduce it, interest adds to the unpaid balance, and the final payment clears the liability.

## Recording interest charges

The credit card company charges interest on the remaining unpaid balance. Record this as a movement from the credit card account to an interest expense account, which increases the amount owed.

| Date | Amount | From Account | | To Account | Description |
| --- | --- | --- | --- | --- | --- |
| 04/03/2017 | 30.00 | Credit Card | >> | Credit Card Interests | Interest on outstanding balance |

## Paying off the full balance

When you pay the remaining outstanding balance, the outstanding balance returns to zero.

| Date | Amount | From Account | | To Account | Description |
| --- | --- | --- | --- | --- | --- |
| 04/03/2017 | 280.00 | Bank Account | >> | Credit Card | Full credit card payoff |