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Any benefit(s) to multiple CC payments over one?

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Chickenpotpie
Frequent Contributor

Re: Any benefit(s) to multiple CC payments over one?

I'm one of those that pay when I get paid, which is twice a month. For me that makes the most sense because I hate to see bills pile up.  I've synched my payments so that I get statements roughly around payday.  FWIW, chase never complained about me making too many payments...lol

Message 31 of 39
Anonymous
Not applicable

Re: Any benefit(s) to multiple CC payments over one?

I was working in a restaurant and doing car detailing at the same time so my income stream was about the same but the times I was getting cash was inconsistent. They are glad to take your money. AutoPays are great if you're not living paycheck-to-paycheck so I simply made the minimum payment as soon as I saw a statement, swung back around with more to pay it off. In BC times, before children, I would write a check every 3 weeks on my truck payment, cut more than a year off.
Message 32 of 39
Anonymous
Not applicable

Re: Any benefit(s) to multiple CC payments over one?


@Anonymous wrote:

@Anonymous wrote:
I am one of those young fellows y'all keep talking about here! For the long term, what's a good consistent util to keep under? It doesn't matter right? With my soon to be student budget I will never be above 6% overall even if I wait until statement cuts given the new accts and limits I now have. That's fine right? Multiple payments sound like a pain in the butt. I am on team PIF all the way btw

Constant PIF monthly and 6% overall utilization is a recipe to get your scores to 800 in probably a year or year and a half considering where you're at already.


Great news! Thanks. Do you know if the overall util matters the most or does individual card util matter as well? I expect to put some spend on my 5% rotating categories when they're in season, say maybe up to 30-50% on that single card but overall I will still be well <10%
Message 33 of 39
sarge12
Senior Contributor

Re: Any benefit(s) to multiple CC payments over one?

I go online to monitor my accounts almost everyday and pay them off at least twice a month. I never have to worry about due dates or worry if I have forgotten to make a payment. It does not appear to harm my score at all, as they seem to stay around 800 or better. Basically I'm a see a balance, pay the balance kind of person now. The only reason I even use CC is rewards, convenience, extend warranties and purchase protection. I never use CC to spend money I do not currently already have. If all cards are at 0 balance I can look at the balance in my checking account...that is my self imposed credit limit.

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 34 of 39
Gmood1
Super Contributor

Re: Any benefit(s) to multiple CC payments over one?

I have only one card(Amex BCP) that gets multiple payments. That's only because my two AU's and I pay at different times. Everything else is basically one lump payment after statement cuts. Unless you're trying to keep utilization down, I see no benefit in paying multiple times a month.

 

Capital one IME does like big payments.

Message 35 of 39
brother7
Established Contributor

Re: Any benefit(s) to multiple CC payments over one?

When y'all say (credit card issuer) likes lump sum payments OR (credit card issuer) doesn't like multiple small payments, what exactly do you mean? I mean, what do you observe that indicates that they like or don't like it?



04/01/2020 - EX 849 (Credit Scorecard EX FICO® Score 8, range 300-850)
02/20/2020 - TU 850 (Discover TU FICO® Score 8, range 300-850)
03/24/2020 - EQ 884 (Citi EQ FICO® Bankcard Score 8, range 250-900)
GOAL - 800! - App free since 11/22/2017
Message 36 of 39
Anonymous
Not applicable

Re: Any benefit(s) to multiple CC payments over one?

@brother7
What folks are insinuating is that, that particular CC issuer is more likely to 'reward' said card holder with either larger and quicker CLIs etc

Some ppl swear by it but IMO it isn't an absolute it varies greatly depending on profile....

Ex:
Some profiles are totally new, young and growing
Others are rebounding from a fall, but were previously thick
Some have other secondary factors that make the profile stand out, for this or that reason

There are many variables bouncing around, however mankind LOVES to have definitive answers whether they exist or not.

Many times there may be a period of time, a stretch of time where account growth and nice lump sum spends coincided but in the long run, what would be the reason to CARE if the CCC preferred to get paid a month vs several times?

Especially, for those that might run several times the limit thru, along with all those exchange fees, the account....if that were the case CCC would just continue and continue increasing lines month after month after month and we know that isn't the case.

We've seen on this forum Discover seems to love, some ppl while others can't pay for a great CLI with like payments
Other times it's Cap-1, who knows
I see ppl yeah I ran X amount thru my Cap1 and they gave me Y limit, as if the REASON they got the CLI was the spend and I shugg my shoulders because I got the same CLI with relatively little spend, same card, same vendor.

*It should be noted 'courting' a particular vendors likes of dislikes is of debatable VALUE, especially until a more mature profile has been established and one wants to 'play' around guessing about ish.

What's NOT debatable and MORE important is, how the scoring model VALUES things because no matter what the vendors Likes, there maybe internal guidelines for tier advancement based upon
Score and the model controls the score NOT, one vendor or their issues about payment structure or timing

What matters is...I'm a broken record folks
A) On time payments
B) Reported debt load =Utilization

So if you need to make 7 payments to look PRETTY for the Reports, that Trump's anything else.
Message 37 of 39
Anonymous
Not applicable

Re: Any benefit(s) to multiple CC payments over one?


@Anonymous wrote:

@Anonymous wrote:
It doesn't make a difference unless you want a CLI. Cap1 likes you to do one big payment vs multiple small payments. And for takeshi (whenever you want to come correct me) this is based on my personal experience with 4 cards from them and multiple user experiences. 2 of them I did smaller payments and two I just did one big lump sum and the two with the lump sum went up by $3k on one and $8k on the other and the 2 smaller payment ones didn't budge. Same cards

Come on 2011XTERROR, Don't rely on generalizations.  It's your entire credit portfolio that is considered.  Don't make assumptions.  This is an extremely common topic.  Don't overlook existing threads and discussions as a resource.

 

Interesting that you've had more success with Capital One when doing single large monthly payments.  When you say it doesn't make a difference unless you want a CLI, what do you mean? 

 

In about 30 days I'm looking to ask for my first Amex CLI.  This month I was debating on several small payments or one large one at the end.  My hesitation in saving it all for 1 large payment is that I plan to run up around 40-50% utilization on the card this month.  If for some reason I'm SPd at the point of having utilization that high, and that SP is what is used when I request a CLI, I would think my results would be much worse than if it showed me at a 0 balance.  Not sure if this rationale makes any sense or if I'm just overthinking it.


I have made one large and multiple smaller payments to Amex. I don't think it effected my relationship with them.

Message 38 of 39
Anonymous
Not applicable

Re: Any benefit(s) to multiple CC payments over one?


@kdm31091 wrote:

@Anonymous wrote:

I still want to know what happens if a creditor soft pulls you mid-cycle when you have 40% utilization say 2-3 weeks before you request a CLI.  Are they going to use that SP and your 40% utilization in their CLI request decision?

 

Perhaps this varies by creditor.  Do some creditors take an instant SP at the time a CLI is requested, or do they all go off of the last one they have on file?


The problem is a lot of these questions have no real answer. I get that nobody wants to hear they are generalizing, but all we can really rely on are anecdotes which have a lot of different things going on -- different profiles, different scores, etc.

 

I sometimes pay multiple times and other times I just wait. I don't feel there's any major benefit to paying several times unless it helps you budget better.

 

Use your cards, make your payments however you see fit, and ask for CLIs when/if they're needed. I have never noticed a difference in a CLI being approved no matter what I did or didn't do. The only thing I have noticed is that most creditors want to see that you "need" a CLI if we're talking about a manual request. Hard to get a CLI if you use your 5k limit for a pack of gum every week. Again though that's just my generalization on the matter. Ultimately as long as the bill is paid I don't think creditors read into these things as much as we tend to.


Agreed!

Message 39 of 39
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