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How to use my credit cards effectivley

Super Contributor

Re: How to use my credit cards effectivley


GloeJohn wrote:

jamevfan wrote:

Quick question,

I see so many of you who have several cards that is used on a regular basis, my question is how are you using the card to where it works for you?

 

I have some charges on several of my cards but I dont find it useful because after ive made charges I have to get on a payment regime in addition to my other current bills to pay them all off and im trying to get a grasp of how everyone regularlay use thier cards without creating more bills, choas and confusion....

 

 

 


Quick answer:

Turn on auto-pay for all cards. Sock drawer any CC that does not have auto pay feature. Set up 'current bills' to be automately paid using cards. 

 

Then sit back and relaxSmiley Happy


This.  If you do not need to carry a balance, then set to auto-pay PIF on due date  (this doesn't maximize your score but does maximize any interest you are earning on your accounts)

Message 11 of 18
Valued Contributor

Re: How to use my credit cards effectivley

When I'm not using primarily 1 card to earn a sign-up bonus, I have ~ 6-7 cards that are used for specific types of spending every month and to keep the rest active I just buy something small with them once per quarter.

 

Also, as others have said make sure everything is on auto-pay for minimum payment just in case you forget to PIF on time.

Message 12 of 18
Super Contributor

Re: How to use my credit cards effectivley


wanderingbuilder wrote:

When I'm not using primarily 1 card to earn a sign-up bonus, I have ~ 6-7 cards that are used for specific types of spending every month and to keep the rest active I just buy something small with them once per quarter.

 

Also, as others have said make sure everything is on auto-pay for minimum payment just in case you forget to PIF on time.


If PIF is the goal, then set auto pay for PIF.  Then if you forget, no interest payments either.

Message 13 of 18
Valued Contributor

Re: How to use my credit cards effectivley


longtimelurker wrote:

wanderingbuilder wrote:

When I'm not using primarily 1 card to earn a sign-up bonus, I have ~ 6-7 cards that are used for specific types of spending every month and to keep the rest active I just buy something small with them once per quarter.

 

Also, as others have said make sure everything is on auto-pay for minimum payment just in case you forget to PIF on time.


If PIF is the goal, then set auto pay for PIF.  Then if you forget, no interest payments either.


That is definitely a good way to go - I just prefer making the PIF payments manually so I can mentally keep track of what my checking account balance actually is, as opposed to what it says it is at any given time. Sometimes when working on SUBs I cut it pretty close to the wire so it's just more psychologically comfortable to me to have everything on minimum auto pay, and go through the rounds manually paying in full.

 

After typing this I realize a spreasheet would be more efficient - this is just an idiosyncracy I am working on Smiley Tongue

Message 14 of 18
Frequent Contributor

Re: How to use my credit cards effectivley


jamevfan wrote:

Quick question,

I see so many of you who have several cards that is used on a regular basis, my question is how are you using the card to where it works for you?

 

I have some charges on several of my cards but I dont find it useful because after ive made charges I have to get on a payment regime in addition to my other current bills to pay them all off and im trying to get a grasp of how everyone regularlay use thier cards without creating more bills, choas and confusion....

 

 

 


I've been having fun w/ credit for about 5 years now and aside from an app I rarely use, I could keep everything orgranized mentally.  With 5 cards it's really easy.  I'm pushing up to 20 cards and I'll be using about 5-7 at any given time, with daily spend along with balance transfer offers I'm using other cards for.  You can tell from my other thread it's getting out of control as I've finally missed a due date on accident.  I've got all my accounts auto-paying again and I suppose I'll have to start the ol' customized spreadsheet, sigh.  I wanted to avoid that...lol

Experian: 686 Transunion: 720 Equifax: 683
Message 15 of 18
Frequent Contributor

Re: How to use my credit cards effectivley


CO_NATIVE wrote:

There are some hardcore MyFicoers here that have spreadsheets that help them keep track of their cards.

 

For others, like me, it is a bit more simple. Each card has a purpose. RIght now, I am using Discover for all gasoline purchases for 5% cash back; next quarter, I will be using Chase Freedom for 5% groceries. When groceries or gas is not on a higher cash back on Chase or Discover, I use my Bank of America for groceries (2%) and gasoline (3%). I am currently using my Navy FCU Cash Rewards for all non catagory spend at 1.5% cash back. 

 

The rest of my cards I have mostly for age or other specific charges-I make small charges to keep them open and current. Others here are more sophisticated with their reward chasing, but I believe the general idea is the same. 


Co-sign on this except I use Citi DC for general spending.


If a man empties his purse into his head, no one can take it from him. An investment in knowledge always pays the best interest. - Benjamin Franklin |Capital One Quicksilver Cash Rewards|Chase Amazon Visa Rewards|BOA Cash Rewards|Walmart Mastercard|Commence MC| Citi Double Cash| Amazon Prime Store Card|Discover It|Chase Freedom|Chase Freedom Unlimited|Amex BCE|Wells Fargo Cash Wise|Barclays Cashforward
$83,300 total card credit FICO Equifax-803, FICO Transunion-791, FICO Experian-771 , DTI-3.4%
Message 16 of 18
Established Member

Re: How to use my credit cards effectivley

Honestly surprised no one here has mentioned setting up a Google Calendar specifically for the purpose of due dates.

I guess it helps that I come from the computer generation, but I can pull up my calendar, filter to that specific calendar, and see clearly which cards are due on which dates, etc.

On top of this, I have 5,3,0 day alerts for these entries to keep me on top of things as well. Along with each banks phone app typically giving me a push notification if I'm not super prompt about it.

Auto-pay set for minimum also keeps me out of dire trouble, but as was stated earlier, like to control the full pay off manually to monitor checking account at time of payment.
Message 17 of 18
New Member

Re: How to use my credit cards effectivley

I'm so glad I learned the method to this madness many years ago as carrying anything OVER 30% of your credit card limit dings your scores.  I have a total of 2 credit cards both are thru my credit union in which the payment of both is due the 20th of each month and statement closes out on 25th/27th of each month.  They then report to ALL 3 bureaus immediately thereafter.  I can monitor via credit karma on 28th and see the newly reported balance and date reported.  I make sure the balance on my cards during the 23-28th of each month are at least UNDER 25/30% and nowadays more like 10%.  AFTER reported (approx. 28th thru 20th of the following month) I use the cards again, particularly because they earn points for gift cards, etc.  I use ithem to pay bills, grocery etc.  

 

When I learned this many years ago, my scores have never been under 680 and now over 750. The key is KNOWING WHEN THEY ARE REPORTED!!!  35% of your score is credit utilization another 30% is payment history.  If you just focus on those 2, you are way ahead of the game at least in knowledge Smiley Happy

Message 18 of 18