Maximizing Cash Back = 90% CL usage

[Anonymous]

I would like to maximize my cash back rewards and use my Chase FU to pay my mortgage. The problem is that it would temporarily put my usage at about 90% of my CL. I'm going to pay the balance in full as soon as the charge clears my Chase account so 3-5 days at most. Do you think that Chase would get nervous and reduce my CL, or would they be more inclined to increase my CL? 

[Anonymous]

You're fine, especially youre paying it all off once the charge posts. 

[Anonymous]

They will have no problem with it, if you pay it off every time.

It will not affect your scores, if they don't have time to report it (if it isn't there on the "cycle" day).

It shows them that you have things you want to put through the card, and over time that should push them to increase you.  It certainly shouldn't hurt you.

If you're a PIF customer, then they make all their money off you from swipe fees.  I do a similar thing with my rent - it goes on the Amex every month then gets paid once it "hits" - which can sometimes take forever (4-5 days to post after authorization), like they are hoping I'll forget and let it ride lol

In reality, I suppose it's the charge originator who holds the key to speed of settlement, but still, it's funny...

[longtimelurker]

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@Anonymous wrote:

I would like to maximize my cash back rewards and use my Chase FU to pay my mortgage. The problem is that it would temporarily put my usage at about 90% of my CL. I'm going to pay the balance in full as soon as the charge clears my Chase account so 3-5 days at most. Do you think that Chase would get nervous and reduce my CL, or would they be more inclined to increase my CL? 

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Is there a fee for paying your mortgage by CC?

[Anonymous]

I'm not sure, I've just been thinking about how to maximize my cash back and I thought about my mortgage first. I'll definitely look into whether or not I'd have to pay a processing fee. Depending on the cost, it might still be worth it. 

[longtimelurker]

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@Anonymous wrote:

I'm not sure, I've just been thinking about how to maximize my cash back and I thought about my mortgage first. I'll definitely look into whether or not I'd have to pay a processing fee. Depending on the cost, it might still be worth it. 

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OK.  It's very common for your mortgage server not to take credit cards at all, so for most people the option is to use a service like Plastiq, which may charge around 2.5%.  Sometimes they have promotions and charge less, but otherwise, unless you have a UR transfer card and can get 1.7c per point transferring, you won't come out ahead

[Anonymous]

I'm actually surprised more mortgage providers don't accept credit cards.  I get it that there are fees associated with these transactions, but if they pass the fees on to the account holder what's the big deal?  I always thought it could only be a good think for the mortgage lender, as it gives the account holder another means to pay their bill.  In a month where cash flow may be extremely tight, would the lender rather get paid or not get paid?  If the answer is get paid (which it always is) you'd think they'd want to provide as many ways to the customer as possible to increase the probability of them paying on time. 

[Skymogul]

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@Anonymous wrote:

I'm actually surprised more mortgage providers don't accept credit cards.  I get it that there are fees associated with these transactions, but if they pass the fees on to the account holder what's the big deal?  

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It's a sign you're in a debt spiral. If you need to make a mortgage payment on a credit card, you've already shifted all possible household expenses to credit just in order to make your debt payments. If you "need" to do this, you are in over your head.

[mitchblue]

From what I understand Mortgage companies used to take a CC as a payment.. They got screwed so they changed policies.

[Anonymous]

That's not true at all in this case.
The reason that was stated is that
Empiregoals is trying to get the most
out of his cash back credit card on a bill
that he is already paying anyway.
What's wrong with that ?


Nothing is wrong with that at all,
and he is smart for thinking that way.
Utilizing his cash back .