Is there really an argument against making multiple monthly payments?

[Anonymous]

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@Anonymous wrote:

Hello all.

I've read a number of posts indicating that one should limit credit card payments to 1 or 2 per month. 

Why?  Unless the card issuer has a specific monthly limit on the number of monthly payment, and assuming that all payments are well over the monthly minimums, what is the harm?  Is there any negative backlash in doing so or not?  

Thanks!

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On the Citibank web site there's a little blurb box that says "Schedule multiple payments to make paying down your balance easier. With the option of making 4 payments per billing cycle, you can pay the way you need to stay in control."  So I guess Citi doesn't mind it.

[Anonymous]

Thank you all so much for your input!

I'm specifically interested in how Discover views multiple payments at this point (their site states that you can make payments every 3 days, no monthly limit to payments).

I just got the card last month ($10K CL), to handle the $2K car repair charge we're going to have next week.  Since this card has the highest CL, we're using that card exclusively - every day charges, bills, etc., while we pay off the balances on the other cards (Discover is our only rewards card).  I just paid the full Discover balance this morning (statement will cut on the 12th).  I do not want the utilization to exceed 20% on this card, so I'll be carefully monitoring and making multiple monthly payments well before the statements cut each month to avoid hitting 20%.  We should have it completely paid off by August (no interest for 6 months).

Wolf3 said: "My wifes Sears MC (Citi) seems to get paranoid about more than 2 payments a month.   After 2 payments they will not release the available credit for 6 to 10 business days."

Discover's site states: "For purposes of determining your available credit, we reserve the right to postpone, for up to 15 business days, reduction of your unpaid balances by the amount of any payment we receive."

OK, so they'll post my payment on the date I pay, but they might not update available credit balances for up to 3 weeks.  My reported account balance should be Total Balance less Payments Posted, though, correct?  The available credit is completely different - I care only about the balance Discover shall report.

Thanks again!

[Jazzzy]

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@Anonymous wrote:

OK, so they'll post my payment on the date I pay, but they might not update available credit balances for up to 3 weeks.  My reported account balance should be Total Balance less Payments Posted, though, correct?  The available credit is completely different - I care only about the balance Discover shall report.

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Yes

[Anonymous]

Thanks Lynette!

[MarineVietVet]

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@Anonymous wrote:

Thank you all so much for your input!

I'm specifically interested in how Discover views multiple payments at this point (their site states that you can make payments every 3 days, no monthly limit to payments).

I just got the card last month ($10K CL), to handle the $2K car repair charge we're going to have next week.  Since this card has the highest CL, we're using that card exclusively - every day charges, bills, etc., while we pay off the balances on the other cards (Discover is our only rewards card).  I just paid the full Discover balance this morning (statement will cut on the 12th).  I do not want the utilization to exceed 20% on this card, so I'll be carefully monitoring and making multiple monthly payments well before the statements cut each month to avoid hitting 20%.  We should have it completely paid off by August (no interest for 6 months).

Wolf3 said: "My wifes Sears MC (Citi) seems to get paranoid about more than 2 payments a month.   After 2 payments they will not release the available credit for 6 to 10 business days."

Discover's site states: "For purposes of determining your available credit, we reserve the right to postpone, for up to 15 business days, reduction of your unpaid balances by the amount of any payment we receive."

OK, so they'll post my payment on the date I pay, but they might not update available credit balances for up to 3 weeks.  My reported account balance should be Total Balance less Payments Posted, though, correct?  The available credit is completely different - I care only about the balance Discover shall report.

Thanks again!

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I sometimes make 5-8 payments a month on my Discover account and would pay more often except for that silly (in my opinion) restriction that only allows payments every three days. It doesn't seem to affect my relationship with Discover.

From a BK years ago to:

9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

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[ngerasimatos]

I tend to make payments to always keep util lower than 20% regardless of the CL or Bal. If I have a costly weekend and I rack up charges on my CC that Monday I pay it down to 20% and then the remainder before statement is due.

[Anonymous]

Thank you, MarineVietVet and ngerasimatos!

I agree, this 3 day restriction is silly, but it could be a lot worse, so I'll take it!

I'm now recording a Discover Card "earliest possible payment date" in my budget, so now I'll easily be able to know when I can make my next payment.  Once I have everything else paid off, we can "live" on this card for the rewards, keep the total utilization under 20% at all times (until I can PIF in AUG), and know when we can pay any extra cash we have.

[ngerasimatos]

Oh yeah, thats reminds me. I milk my cards for the rewards so the more I use them (as opposed to my debit card) the more rewards I earn. its a win-win sitatuion.

[Anonymous]

Exactly - in addition, Discover More offers a 1 year extended product warranty, purchase protection, all sorts of goodies.  Plus, better fraud protection than my debit card.

[jaysdad2k]

I like to make multiple payments too. To me it is like savoring dinner by taking small bites instead of gulping it all down at once. As a consultant, I don't get a fixed paycheck, so I nibble along when I get a little bit ahead. Most of my payments are of less than $100.

I usually pay Amex 4 or 5 times in a month, and they told me that I could put $10K on my charge card as a test once.

With Discover, I usually pay about 4 times a month, but once hit 6. When I first got it, I was "nibbling" at the balance every few days, and they started to hold my available credit for up to a week. After a couple of months of this, they must have figured me out, and now they show the available balance whenever the payment posts. I guess after almost two years they know my pattern by now. So, don't be surprised if they hold your balance awhile at first.

I did a CLI on the phone option last October from $8K to $10K. A couple of months ago, I started charging even small purchases on it to win that million bucks. Then I called in for my second CLI last month, and asked for $2,500. It went straight to the CSR who said I needed a hard pull from a Credit analyst. I told her no.

I wonder if all those tiny purchases made them think I needed to charge lunch all of a sudden. So I stopped doing that. My statement date is Sunday, and it will be PIF again, so I might call back and ask for a little less to see if it makes a difference.