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Learn how to record making a payment on a line of credit.
With QuickBooks Online, you can track the payments you make to your bank or creditor on a line of credit.
Note: Just looking to record paying down your credit card? See how to record making a credit card payment instead.
Pay with a paper check #
If you’re going to send the bank or creditor a paper check, follow these steps:
- Select + New.
- Under Vendors, select Check.
- In the Payee field, select or enter the name of the financial institution.
- Select the bank from the drop-down list in the Bank Account field.
- In the Category details section, select Line of Credit from the Category Type field and enter the amount you want to pay down the principal.
- In the Category details section, select Interest paid from the Category field and enter the amount you want to pay down the interest.
- Select Save.
Pay with a debit or credit card #
If you’re paying the bank back with a debit or credit card, you can:
- Record the repayment as an expense
- Categorize the expense when it comes in to your bank feed
Either way, be sure to split the expense between principal and interest in the category details.
