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Regular Contributor
PhillyGuy215
Posts: 165
Registered: ‎03-22-2009

Re: How Many Times Do You Pay Your CC Per Month?

For 3 years before I applied for my mortgage I was making weekly payments.  I REFUSED to let any CC balance report.   Only a few times did I purposely let a large balance report and then promptly pay it off on the due date.

 

I purposely made sure I was not on OPT OUT so credit report screening would pick up on the balance and the payoffs so I could get sweeter offers and get CLIs (contrary to popular believe, some card issuers do pay attention to HIGH BALs showing on competitor accounts).

 

 

 

Now that everyone with a FICO over 750 is getting inundated with BT offers, having let those balances report has helped me get some better deals.   I have a drawer stuffed to the gills from years of toy cards but I have stopped putting token charges on a lot of them to keep them open.  I get card offers from regional banks a LOT and from banks I used to have savings accounts with like FNBO.  I know how crappy their products are so I shred those offers as soon as I get them.

 

Right now I have some really sweet TLs with nice big lines so I am now officially in "credit gardening" mode.   I don't need any new credit and my new goal is to get my scores up in the 820s over the next couple of years.   I've reached 800 before once.

 

I have also been just as zealous about building up free cash as I have been about raising my FICO scores.  I do like to borrow and finance things even though I have the cash to buy it, just at very low interest rates.   I've sacrificed my 0 INQs to get a good deal on a sweet Macbook at 0% interest and I figure once I can get back into the 800 Club I can leverage my credit to swing deals like that again in the future.

 

Even if I can't find good BT deals like I have this month, I can use my cash reserves and move them into my NFCU Savings account which earns a tiny amount of interest, then Navy will let you take out a secured loan with NO HARD INQs and you can get rates as low as 3.5% that way for up to 5 years.   That's a really good deal if you want to hang on to your cash but you don't want to put it into a CD but you need to purchase something large and don't want to be paying >10% interest on it.

 

I love using secured loans especially at Navy because there's no INQs for doing that and if I want to drop my util down I can shove my balances over into there while I'm gardening!

EQ: 801!
I got one foot in the 800 Club, now I need the other two feet.
Valued Contributor
smc733
Posts: 1,262
Registered: ‎05-13-2010

Re: How Many Times Do You Pay Your CC Per Month?

Now that I only use two cards, I am going to pay once a month, when the statement cuts, and PIF.

New Visitor
CreditZebra
Posts: 1
Registered: ‎07-31-2011

Re: How Many Times Do You Pay Your CC Per Month?

[ Edited ]

Making payments towards your credit card bill several times a month is a good idea, especially if you have low credit limit on the card. The reason for this is that your credit utilization is a key factor in your credit rating. You want your credit card utilization under 20%. The utilization percentage comes from your monthly statement (bill) amount, NOT your ACTUAL utilization. For example, let's say you had a $10,000 CL on the card, and made $9,000 in purchases that month. If you waited for the bill, your utilization would show as 90%! That's really bad! However if you paid $8,000 before the end of the statement pertiod, then you'd get a statement for $1,000, showing a 10% utilization, which is very good.

 

I use my credit cards like debit cards, and transfer money a few times a month to keep the amount low. You want some utilzation to show, but I always pay everything off each month. Again, you should always keep your statement balance under 20% of your credit limit, but you can use as much of the card as you want as long as you pay it down to under 20% before the end of the statement period.

 

In other words, pay your credit card off at least twice a month, if you are going to use it beyond 20% of the CL before the statment ends. If your purchases never go above 20% of the CL, then once a month is okay.

Moderator Emerita
LilMirth
Posts: 3,091
Registered: ‎08-09-2008

Re: How Many Times Do You Pay Your CC Per Month?


CreditZebra wrote:

Making payments towards your credit card bill several times a month is a good idea, especially if you have low credit limit on the card. The reason for this is that your credit utilization is a key factor in your credit rating. You want your credit card utilization under 20%. The utilization percentage comes from your monthly statement (bill) amount, NOT your ACTUAL utilization. For example, let's say you had a $10,000 CL on the card, and made $9,000 in purchases that month. If you waited for the bill, your utilization would show as 90%! That's really bad! However if you paid $8,000 before the end of the statement pertiod, then you'd get a statement for $1,000, showing a 10% utilization, which is very good.

 

I use my credit cards like debit cards, and transfer money a few times a month to keep the amount low. You want some utilzation to show, but I always pay everything off each month. Again, you should always keep your statement balance under 20% of your credit limit, but you can use as much of the card as you want as long as you pay it down to under 20% before the end of the statement period.

 

In other words, pay your credit card off at least twice a month, if you are going to use it beyond 20% of the CL before the statment ends. If your purchases never go above 20% of the CL, then once a month is okay.


Hi CreditZebra! Welcome to the myFICO Forums. :smileyhappy:

 

While there's nothing wrong with paying more than once per month, you can very easily control the statement balance with only one payment per month. I do it all the time! I simply PIF before the statement date. One time per month, regardless of how much, or how little of the credit line I use. One some cards, I use well over 20% of the credit line each month, and I still only pay once.

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Valued Contributor
Mustanglvr2006
Posts: 1,971
Registered: ‎02-06-2011

Re: How Many Times Do You Pay Your CC Per Month?

I used to pay several times a month. Now that I have a system down pat, I pay only once a month, usually a week before the due date, I let one CC report a 5.00 balance and then pay that once the statement posts (I like to keep my util @ 1-4%) 99% of the time my util is 1%. and has been for the last 6 months.

 

I never charge more than I can afford to pay one week before the due date, I have 10 CC's and I'm truly one of those people who never carry a balance except that one 5.00 bal. (I know that there will be a time when I will carry a bal on a large purchase, but up till now I have never carried a bal)

 

So technically I pay once a month on any CC I use that month, but twice on the CC I use for my util.

 


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Senior Contributor
Open123
Posts: 3,934
Registered: ‎02-23-2011

Re: How Many Times Do You Pay Your CC Per Month?

Mostly once per month.

 

The only time I'll pay twice is if I have a small charge trickle in on a card I'm planning to report a 0 balance.

Established Contributor
Watchmann
Posts: 985
Registered: ‎05-14-2008

Amusing to see the gymnastics people go through to pay th...

[ Edited ]

Amusing to see the gymnastics people go through to pay their obligations, but if your bag is to be a slave to the CCC's that's your own business.  It seems silly to use your card and then go home to pay it, what's the point, really?  I have my cards set up on auto draft, let the CCC initiate the PIF payment on the due date from my checking account, no muss, no fuss and if they are late by a day or two in doing the draft that is their problem.  Let the cards work for you instead of the other way around. My only responsibility is to make sure the checking account has the funds in it to honor the payment.

Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010

Re: How Many Times Do You Pay Your CC Per Month?


p- wrote:

 


Wolf3 wrote:

For those who like to continually pay right after you use your CC.  You are essentially doubling the transactions to pay for things, when you have the cash available.

 

Why not run your debit card as a charge (sign for it, no PIN), You get the same protections, and many can be set up to get rewards.    

 

 


There are many reasons to use a credit card instead of debit:

 

 - If your debit card number is used fraudulently, you are out real money until it's resolved.  You could end up with your checking account empty or even overdrawn, causing bounced mortgage checks, etc.  With a credit card it's just available credit gone until the problem is resolved.

 

 - There are better consumer protections with a credit card, and it is much easier to dispute mistakes.

 

 - Rewards are typically higher with a credit card.

 

 - Credit card companies are more likely to raise the limits on frequently used cards, and will close unused cards.

 

 - Some cards give you extended warranties on items you purchase with them, and other benefits like travel insurance, rental car insurance, etc.

 

 - If you return an item, instead of waiting for your money to go back into your account you just don't pay the bill, and the credit will wash.

 

 - Having and using credit cards responsibly helps establish a good credit history, allowing you to qualify for better offers for loans, lines of credit, and other financial tools you can use to achieve your goals.

 

 - Transactions like hotels and gas purchases can sometimes result in "held funds" greater than the actual amount spent.  With a debit card you don't have access to that money until the "hold" is released.  With a credit card, it just ties up available credit until it clears off.

 

That being said, there are dangers.  You really need to make sure you can avoid the temptation to overextend yourself.  If you have a problem with spending, it's better to pay cash, then you will never end up owing. 

 

More:  http://www.fdic.gov/consumers/consumer/news/cnfall09/debit_vs_credit.html

 


I'll stand corrected.   I only use a debit card when I want cash back.

Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: How Many Times Do You Pay Your CC Per Month?


LilMirth wrote:

CreditZebra wrote:

Making payments towards your credit card bill several times a month is a good idea, especially if you have low credit limit on the card. The reason for this is that your credit utilization is a key factor in your credit rating. You want your credit card utilization under 20%. The utilization percentage comes from your monthly statement (bill) amount, NOT your ACTUAL utilization. For example, let's say you had a $10,000 CL on the card, and made $9,000 in purchases that month. If you waited for the bill, your utilization would show as 90%! That's really bad! However if you paid $8,000 before the end of the statement pertiod, then you'd get a statement for $1,000, showing a 10% utilization, which is very good.

 

I use my credit cards like debit cards, and transfer money a few times a month to keep the amount low. You want some utilzation to show, but I always pay everything off each month. Again, you should always keep your statement balance under 20% of your credit limit, but you can use as much of the card as you want as long as you pay it down to under 20% before the end of the statement period.

 

In other words, pay your credit card off at least twice a month, if you are going to use it beyond 20% of the CL before the statment ends. If your purchases never go above 20% of the CL, then once a month is okay.


Hi CreditZebra! Welcome to the myFICO Forums. :smileyhappy:

 

While there's nothing wrong with paying more than once per month, you can very easily control the statement balance with only one payment per month. I do it all the time! I simply PIF before the statement date. One time per month, regardless of how much, or how little of the credit line I use. One some cards, I use well over 20% of the credit line each month, and I still only pay once.


+1

 

What many people don't realize is that reported util is calculated from the balances reported to your credit reports, and that only happens once a month. (OK, well sometimes twice, when Discover has hiccups. But mainly once a month.)

 

There are two groups of people that you might be trying to impress here, and it's important to understand which is which.

 

-- Other lenders who are softing your reports, to see what you're up to: they see the balances that are reported by each lender once a month. For most lenders, this is the balance due that shows up on your statement each month. An additional figure that they can see is how high your balance got during the month, just the one-time highest figure. See your full Experian report for an example. Otherwise, they don't see the ups-and-downs of all your accounts, other than their own.

 

-- The individual lender, on this particular credit card. This is something different. They don't focus on your reported util (on their own card.) They want to know what you're doing with that card, including if you're paying it off. For most of us, with halfway-decent CL's, the name of the game is to use the card periodically to keep it open, and then pay it off so that we don't pay any interest. But if you got stuck with a low-CL card, and you're trying to argue your way into getting an increase on that particular card, you might want to use it for everything possible, paying it off online periodically throughout the month as you approach your limit. This shows the lender that (A) you use the card, (B) you're responsible and you pay back your debts, and (C) you could use a higher CL.

 

In this latter case, it makes sense to make multiple payments. Otherwise, I don't really see the point, unless you are keeping yourself on a tight leash and preventing having CC balances mount up, by paying early and often. In which case, congrats and thumbs up and all the rest to you: what matters is what works for you, not what you read on the forums or in Money Magazine or elsewhere. Keep doing what keeps you financially smart and secure.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Contributor
p-
Posts: 2,539
Registered: ‎06-05-2008

Re: How Many Times Do You Pay Your CC Per Month?


Wolf3 wrote:

...  I only use a debit card when I want cash back.



Yup, me too.  If I have a choice between an atm fee or using debit at a store for a drink or something, I prefer to buy something and get the cash back at no charge.

  2-13-14: FICO EXP: 779 - EQU: 742 - TRAN: 765 - AVG: 762 - +212 points from JUN 2008 - MY CREDIT JOURNAL


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