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How does Paying In Full weekly affect my chances in getting an Automatic Credit Limit Increase? On one hand you are consatnly keeping your utilization significantly lower and at the same time the CC are making money off merchant fees and getting a quick return on their investment. On the other hand, you are using less of your credit limit and do not appear to need a CLI.
Paying off weekly or before the statement reports so that it reports a zero balance is always a good idea because you don't have to pay finance charges, reduce the chance of paying late, and benefit from a good credit score because of your low utilization. As far as auto CLIs, there's no guarantee you will get them, that really depends on the company and the type of card you have..
For me, I try to look at how I can get the most for my time/money. Like, if I'm going to be making a significant purchase, I might time it just after the statement closes so I'll get that full month plus the amount of time between when the statement cuts and when payment is due. Usually I'll PIF then. That's a little unrelated to what you asked but just something that I thought of when I read that.
Does it help? As mentioned, it shows that you keep on top of your accounts to keep them current. I don't know if that would carry any more weight over just paying in full by the due date.
One thing that I have wondered is would credit card companys rather see you carry a balance (not maxed) so they can make $ off of the finance charges and then be more likely to grant more credit if your keeping up with payments so they can make even more $ off of possible higher balances.
Thoughts?
You can't really PIF weekly. PIF means paying the full amunt due each month. By definition, you can only do it once a month. .
@Anonymous wrote:For me, I try to look at how I can get the most for my time/money. Like, if I'm going to be making a significant purchase, I might time it just after the statement closes so I'll get that full month plus the amount of time between when the statement cuts and when payment is due. Usually I'll PIF then. That's a little unrelated to what you asked but just something that I thought of when I read that.
Does it help? As mentioned, it shows that you keep on top of your accounts to keep them current. I don't know if that would carry any more weight over just paying in full by the due date.
One thing that I have wondered is would credit card companys rather see you carry a balance (not maxed) so they can make $ off of the finance charges and then be more likely to grant more credit if your keeping up with payments so they can make even more $ off of possible higher balances.
Thoughts?
You would think they would be happy to make some finance charge money, but they get paid every time a card is swiped at a terminal (transaction fees). Also they base their assessments on risk, and the more balance you carry, the greater the risk that you might miss a payment. And studies show that once a person misses 3 payments, they let the card go into collections.
@variableResistor wrote:How does Paying In Full weekly affect my chances in getting an Automatic Credit Limit Increase? On one hand you are consatnly keeping your utilization significantly lower and at the same time the CC are making money off merchant fees and getting a quick return on their investment. On the other hand, you are using less of your credit limit and do not appear to need a CLI.
IMO, it does more harm than good. First, your "high credit" reporting to the CRAs is never going to get very high. I had one underwriter deny me a higher CLI because the high credit amt reporting for a higher CL CC (at the time) was low. So, she threw that it my face when I was asking for a CLI, saying that I didn't need it because the highest balance I had had on this other CC was $XX.
Second, some CCs don't like multiple payments every month. Some seem to be okay with it, but others aren't.
Also, I think it looks like you may have budgeting problems. If I'm an underwriter (this is just my opinion) and someone is paying weekly, I'm going to be reluctant to give a CLI because I think that they're just barely managing the CL they have now. Yeah, it may look responsible to pay weekly. But really, the people I know who have $ don't do that. I think most people do it because it helps them to budget their income and be sure their CCs are paid. That's a good thing. But in terms of convincing an underwriter to give a CLI, I'm not so sure it helps.
anyone had Fico score right by 700 or above ? Please share us how you using your card ?
1. how you paid on it ? weekly ? heavy charge ? light charge ?
2. How long usually u get credit increase request ? automatic......Please share all your experience so we all newbie would know what we can do......to establish our good credit habit.
To me im using just about 75% on my credit limit ( heavy ) but i do paid it once before the cut off time ? Is that a good idea ? I also only used on 1 card and let the other 2 report as of $0 balance every month and always keep the total under 9% utili ...What do you guys think or what the best way to get the best of Fico score ....
Hi! new to posting on this forum, but I have been reading everyone's credit stories for the past month now.
Nicholas's questions prompted me to finally reply and share my story... i'm not sure if it'll help but so far I've had no problems getting approved for credit cards or getting the best APR on loans. I just refi my mortg and locked in a great 2.875% on 15 yrs!!
Anyhow, as for how I manage paying my credit cards, my main goal in mind: i want them to report a balance when they report to the credit bureaus so it looks like i'm using them, BUT i dont want them to report a high balance either (to keep util score low)... so here's what i do month to month:
1) I rotate between 3 out of 6 of my credit cards, depending on where i am making my purchases and which card gives me the highest rewards. i.e. use AmEx BCE @ supermarkets for the 3%CB, gas @ 2% CB; use my banana visa @ GAP Inc to get the 5% CB; but to keep my life simply, i always have 1 main card that i default the rest of my spending-- my primary card=CapOne Green Cash Rewards which gives me 1.5% CB overall.
2) since the bulk of my spending is on 1 main card (CapOne), the rest of my credit cards will have lower spend/balances, so I set those up on autopay to pay the FULL stmt balance at least 5 days prior to the actual due date (sometimes if i have the funds, i'd just pay it immediately when the stmt closes). this prevents me from getting charged any finance or late fees, and also 1 less thing for me to "remember" to pay. paying it off earlier also gives me a chance to make a payment if that autopay ever "fails" for whatever reason.
3) now on my primary card, that balance is much higher... usually upwards of $3000 per month. so this one takes a bit more of a strategy. i get paid every 15th and 31th of the month, while my husband gets paid bi-weekly. I usually pay this bigger bill 2x a month, but always make sure i pay off the entire stmt balance. so for example, if my stmt closes @ $3000 (for simplicity purposes), i wait until a paycheck gets deposited (via direct deposit), and I pay off PART of the bill ... as much as I can afford until the next paycheck... so i try to aim for at least $800 - $1500 per payment. then when the next paycheck comes, i pay the remainder of the stmt balance. If i'm doing well in 1 month (i.e. i spent less than normal), i may choose to pay more than the remainder so that i essentially "pay down" the current balance before the next statement closes.
IMO, paying it off weekly seems like overkill-- as another posting stated, it may look like you've over managing your credit. I do 2 payments per month at most.
based on my strategy, I have seen automatic CLI on my cards, but due to potential ID theft, i honestly dont want my CLs to get TOO high... I am fine with my current limits. However, on my banana visa, i started out @ $2500CL, but GE has increased it to $3100, then $4000, and now it's at $5500, and i've had the card for almost 1 year now.
On my AmEx, had it since 2009, and my initial approval was for $2500, and i slowly requested CLI on that one... i believe my first increase was to $5000, then, $8000, then $10k for the longest time until recently i requested it to go to $15k. I think it also largely depends on your income as well.
Inactivity on a card will not get you a CLI. i tried to request CLI on my citicard recently, but I got denied "due to inactivity" on the account. So definitely charge SOMETHING on the card that you treat as your "primary" and focus on 1 at a time if you're aiming to get a CLI.
@bichonmom wrote:
@variableResistor wrote:How does Paying In Full weekly affect my chances in getting an Automatic Credit Limit Increase? On one hand you are consatnly keeping your utilization significantly lower and at the same time the CC are making money off merchant fees and getting a quick return on their investment. On the other hand, you are using less of your credit limit and do not appear to need a CLI.
IMO, it does more harm than good. First, your "high credit" reporting to the CRAs is never going to get very high. I had one underwriter deny me a higher CLI because the high credit amt reporting for a higher CL CC (at the time) was low. So, she threw that it my face when I was asking for a CLI, saying that I didn't need it because the highest balance I had had on this other CC was $XX.
Second, some CCs don't like multiple payments every month. Some seem to be okay with it, but others aren't.
Also, I think it looks like you may have budgeting problems. If I'm an underwriter (this is just my opinion) and someone is paying weekly, I'm going to be reluctant to give a CLI because I think that they're just barely managing the CL they have now. Yeah, it may look responsible to pay weekly. But really, the people I know who have $ don't do that. I think most people do it because it helps them to budget their income and be sure their CCs are paid. That's a good thing. But in terms of convincing an underwriter to give a CLI, I'm not so sure it helps.
If an underwriter complained that my high balance wasn't high enough I would have them look at my payment history for the card, so he could see that I push 1k-2k a month through his card and don't want to have my UTL go abovt 10% and since I don't have a 20k CL, I have to pay weekly.
or he could look at my older cards where I did have a high balance reported of 95% of my CL did report. Of course they are all reporting 0 these days.