I make payments about once a week sometimes more then that if the balance gets high. I also make payments out of multiple accounts at once. Say business charges come out of a different checking account I have just for business reimbursement.
I’ve done this Amex, US bank and starting to with BoA. Never had any problems. Amex will let you run a credit balance and extend you the additional available credit. I got a credit for a return I did in the store. I had already paid that charge off. So for like 4 days. I had a credit line of 2035 when it’s normally 2K
I’ve done this Amex, US bank and starting to with BoA. Never had any problems. Amex will let you run a credit balance and extend you the additional available credit. I got a credit for a return I did in the store. I had already paid that charge off. So for like 4 days. I had a credit line of 2035 when it’s normally 2K
@Anonymous wrote:FWIW, someone I know who works as an underwriter said that their (tiny local) bank considers a person who pays things off every few days as "not a responsible user of credit".
Their reasoning is that a person who can manage balances and payment schedules, etc is more responsible to them than someone who is scared and pays constantly. It's a "lol" situation but this is a tiny community bank, not a huge one.
You know what's so silly about that underwriter's statement?
He/She is ASSUMING that someone who is on a different payment schedule (daily, every 3 days, weekly, etc) is acting out of "being scared" or some kind of panic and/or lack of self-control.
I pay my CC a MINIMUM of once per week, which means at least 4 times per billing cycle. In reality, it ends up being between 5-10 times each month. If I make a large purchase, I pay it off as soon as that big amount posts.
That is simply MY schedule. MY method of supervision. MY method of catching improper transaction amounts & fraud.
ABCD, you LOL'ed at the underwriter's statement, so I know you don't agree with it. If my CC flagged me for my multiple payment methods, I would cancel them in a heartbeat and and go with someone else.
@HeavenOhio wrote:
@Anonymous wrote:I wish we had a master thread on any lenders who let you overpay and let you "extend" your limit that way.
I almost had a chance to test that with AMEX recently. I paid my current balance plus the one pending charge. But the pending posted at the same time the payment did. It would have been interesting to see what my available credit would have been had the pending charge waited a day to post.
I think what's more likely to happen is that one's available credit will behave the same way whether one's current balance is positive or negative. Pending charges will still be deducted from one's available credit until they post. However, once charges post, available credit will be restored as usual. You wouldn't necessarily be extending your limit by paying in advance. But you'd be eliminating processing time in getting your limit back.
+1
I can confirm that Capital One still operates this way.
Back in the summer I tried to make a payment from my WF account using their mobile app, and I got an error message. Instead of fooling with it I made the payment from USAA instead, with the intent of transferring the funds over from WF later. The next day I realized the payment at WF had actually been submitted successfully, so I had sent Capital One two identical payments for the month. 
The amount was just north of $1.5k, and thankfully I was in a position to 'float' that much a second time without being in a bind. Over the next few weeks, I had a credit balance for the amount of the overpayment, but my available credit was never more than my usual credit limit.
As charges would be made my available credit would be reduced, then once the charge posted the credit balance would be reduced (and the available credit restored).
I can also share that 'back in the day' with an Orchard Bank card (that's now my Capital One QS MC) I once needed to make a purchase that was more than my credit line. I called to see if I could make a payment to create a credit balance then charge against it and was told that it wouldn't work, and that any charges over my credit line would be denied; the CSR then suggested a CLI. (This was one of the two times that card got a CLI when it was still HBSC - they gave me an extra $250, which at the time was significant.)
Later on I read up on 'bust-out fraud' and the reasoning behind not allowing a prepayment to artificially increase a credit line made sense.
@marty56 wrote:Some CCCs limit the number of payments you can make withing a certain timeframe. PNC does this.
Same with Discover. If you make payments more frequently than every 3 days (or perhaps 3 business days), they'll put a 7 day "soft hold" on your account in that the payment will be credited against the outstanding balance, but won't restore your credit limit.
I only know this because they give you clear warning then scheduling a (pull) payment if you attempt to pay too frequently, so you'll never be caught blindsided.
@OmarR wrote:
@Anonymous wrote:FWIW, someone I know who works as an underwriter said that their (tiny local) bank considers a person who pays things off every few days as "not a responsible user of credit".
Their reasoning is that a person who can manage balances and payment schedules, etc is more responsible to them than someone who is scared and pays constantly. It's a "lol" situation but this is a tiny community bank, not a huge one.
You know what's so silly about that underwriter's statement?
He/She is ASSUMING that someone who is on a different payment schedule (daily, every 3 days, weekly, etc) is acting out of "being scared" or some kind of panic and/or lack of self-control.
I pay my CC a MINIMUM of once per week, which means at least 4 times per billing cycle. In reality, it ends up being between 5-10 times each month. If I make a large purchase, I pay it off as soon as that big amount posts.
That is simply MY schedule. MY method of supervision. MY method of catching improper transaction amounts & fraud.
ABCD, you LOL'ed at the underwriter's statement, so I know you don't agree with it. If my CC flagged me for my multiple payment methods, I would cancel them in a heartbeat and and go with someone else.
Exactly. My rule of thumb is if a single transaction is >10% of my available limit on that particular card, I pay it off as soon as it posts, Partly out of habit, partly to always keep an optimum util. (actually through experimentation I found my optimum util is around 7%)
That and after recently acquiring 3 new cards, I've been obsessively paying down them as I go to make sure I don't accidentally let more than 1 card report a balance. Complete overkill? Absolutely. But playing the FICO game requires effort. 