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Charging monthly expenses

Frequent Contributor

Charging monthly expenses

I'm just wondering if anyone on this forum makes a practice of charging monthly expenses like bills and gas, and then pay it off at the end of the month. This is kind of what I have been doing and I am concerned how it could affect my credit. As far as my limit it is 7500 and I only use 800 every month and then pay it. Is this a bad idea?

-------------------------------------------------------------------------------------------------Fico Score Range 600-625 across the board
Message 1 of 20
19 REPLIES
Contributor

Re: Charging monthly expenses

I do this as well. It may affect your utilization if you let the balance report. Unless you plan on applying for something it wont matter, and if you are planning on it jsut make sure you pay it before the cycle ends next month and it will report 0 balance.  I dont have enough credit available to pay all my bills and everday spending without getting into 20% utilization so I pay my credit cards twice a month and always pay off before the statement cuts.

*USAA WORLD MC 18k* *USAA VISA 12k* *AMEX BCE 10k* *DISCOVER IT 15k* *AMEX ZYNC* *B of A SIGNATURE CASH 15k* *NAVY FEDERAL PLATINUM 20k* *CITI DOUBLE CASH 15k* *Veridian CU 14k* *Barclays Apple 12.5k*

Message 2 of 20
Valued Contributor

Re: Charging monthly expenses

as long as you pay by the due date in full and not use it until your stamement cuts you will be alright. 

 

like stated utilization might go up if you dont pay it in full or you do a couple transactions after you paid. 

 

also if your not applying for anything it shouldnt really matter, 

 

util= balances on all cards/ limits on all cards. 

 

for example my chase freedom i maxed out and paid in full yesterday. 

now im not using it until my statement comes out in a couple days and using my other card. 

 

then i will pif on that card and start using the freedom again. 

 

there is nothing wrong with using it for daily expenses its what its there for. as long as you can pay for it. 

Current: Discover Fico 709 3/15 Walmart Fico 743 4/15

Inquiries (24 Months): EQ 6 TU 1 EX 6 | Most Recent: 4/09/2015
Over 12 Months:9


2015 Goals:
Lower Utility
Earn Cash Back

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Chase Freedom$1500
Discover IT$7,400
Citi DC $10,000
Citizens Mastercard$7,000
Message 3 of 20
Established Contributor

Re: Charging monthly expenses

I run everything on my credit cards except the water and electric power utility. Usually, I try to pay on the due date (sometimes the due date is before the closing date) and make sure not to use the card again till it closes for the month.

It does pay off to use them like that as long as you pay in full so the balances don't get reported and affect your util. I used to get about $20 a month doing this with Discover but now that I have Amex and Citi, I could double my cashback every month just by swiping my cards instead of debit.

 

This method also increases your credit card usage and lenders like that because the more you use them, the more money they get.

Fico Scores: . Walmart TU 748 . Garden 8/19 2014 .

Cap One Journey 500 | Discover IT 500 | GE Home Design 5.6k | GE HHGREGG 5k | Amex Zync NPSL | Amex BCE 6k | Citi Forward 4.2k | Citi Dividend 3k | GE BrandsMart 1k | GE Lowes 8.5k | Discover Walmart 7.5k | Barclays Apple 2.5k | BoA CR 2.7k | CSP 7.2k | Platinum Prestige 5k | IT Chrome 4k | Slate 2.3k |
Message 4 of 20
Contributor

Re: Charging monthly expenses

Yes for sure. Cash back is like %75 of why I have credit cards.

 

 

My ultimate credit wish,
a JP Morgan Palladium card
Message 5 of 20
Valued Contributor

Re: Charging monthly expenses


CruzImperial wrote:

I run everything on my credit cards except the water and electric power utility. Usually, I try to pay on the due date (sometimes the due date is before the closing date) and make sure not to use the card again till it closes for the month.

It does pay off to use them like that as long as you pay in full so the balances don't get reported and affect your util. I used to get about $20 a month doing this with Discover but now that I have Amex and Citi, I could double my cashback every month just by swiping my cards instead of debit.

 

This method also increases your credit card usage and lenders like that because the more you use them, the more money they get.


+1

 

I do the same thing, rewards rock i make about $8 a month just paying for my family cellphones and cable/internet bill (AMEX Zync Comm pack) If the OP is worried about UTL, get a charge card, no UTL impact and charge cards internal limit grows the more you use it, with in reason. 

 

 

Cards: Chase Southwest 20k & CSR 10k & CSP 10k & Freedom 6.6k & Amtrak/Freedom 4.6k, FNBO DISC 25.1k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 10k, Paypal Extras MC 7.5k, CapOne Venture 15k, QS 2.5k, QS 750, Amazon 5.9k, Walmart 10k, Citi Simplicity 9k, Discover IT 16k and a nice stack of store cards.
Last APP/HP 5/15/2017 Marcus Loan. 30k
Message 6 of 20
New Contributor

Re: Charging monthly expenses


CruzImperial wrote:

This method also increases your credit card usage and lenders like that because the more you use them, the more money they get.


I also pass as much through my credit cards as possible, for the cashback.  But now I have multiple cashback cards, and am juggling what I pay with what to maximize the cashback.  In this case, they actually lose money on me, so I can't help but wonder if that will raise any flags at some point.

Message 7 of 20
Frequent Contributor

Re: Charging monthly expenses

I definitely charge as many of my monthly expenses as possible on my Chase Freedom (cell phone, internet access, gym membership, annual Ancestry membership, etc)

 

In addition to recurring monthly/annual expenses, I use my card for almost all of my everyday and/or miscellaneous purchases e.g.s 7-11, Foodland (grocery store),  drugstores, internet purchases, parking meters that take cc's, etc.

 

 IOW, I run as much as possible through my card to take full advantage of the cash back rewards. Smiley Happy

Then I PIF (usually before the due date, sometimes before the next statement cuts).

 

(Another reason I put as much on my card as I can is I carry VERY LITTLE cash - 6 years ago my purse was stolen with over $100 cash in my wallet. Never will I 'lose' that much in cash again!)

 

 


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myFICOs as of 3/25/14:...EX=809 .... EQ=802....TU=787
Message 8 of 20
Frequent Contributor

Re: Charging monthly expenses


CreviceTool wrote:

CruzImperial wrote:

This method also increases your credit card usage and lenders like that because the more you use them, the more money they get.


I also pass as much through my credit cards as possible, for the cashback.  But now I have multiple cashback cards, and am juggling what I pay with what to maximize the cashback.  In this case, they actually lose money on me, so I can't help but wonder if that will raise any flags at some point.


Trust me when I tell you they are ALWAYS making money off of you one way or the other, whether it is the merchant expense for using your card, or even the free advertisement you provide them,  you are a means to an end for them, and a very small piece in the big picture.  So do what is best for you and I promise you no one will shut you down as long as you pay your bills with your hard earned money and get the trivial 1-6% cash back for being a good loyal frequent consumer in our great country Smiley Wink

Message 9 of 20
Mega Contributor

Re: Charging monthly expenses

I run all my monthly bills other than my PSECU car loan payments through credit cards. I need to look into that comm pack for the Zync I pay fios / Sprint through them. How much is the pack?



EQ FICO 548 3/3/16
Message 10 of 20