Multiple cards - put at least one small bill on each?

[RockySC]

I posted this in another thread but wanted to get more eyes on it for more opinions.

If you have multiple cards is it a good idea to put a single monthly bill, say Netflix or Hulu and that sort of thing, on each card and then have each card set up with auto pay each month from your bank account? My thinking is to do so to prevent them from ever closing any of them due to inactivity. If I do this, is it safe to set them up with auto pay each month and just forget about it (for the most part)? I was told to pay before the statement generates - is it possible to set up auto pay to do this automatically as well? My goal is, obviously, to build my score and hopefully end up with some CLIs as well. Thanks in advance!

[Gunnar419]

Quite a few people report doing exactly that. If you have cards you don't otherwise use but you want to keep open, it's a good possibility.

The only thing I'd add is don't just set up an autopay then forget them. Always check your accounts online to make sure the autopay has done its job because sometimes things go wrong and you don't want to be hit with lates just because autopay screwed up.

Personally, I don't do this because I'd rather just close cards I have no good use for, but I realize everybody's needs are different and what you propose is very much in line with the common wisdom of MyFico members.

[Gunnar419]

And yes, it is possible to set up autopay to pay early, especially provided you're setting up autopay from your bank and not setting it up on the credit card account. Some card accounts have limitations on when you can pay.

[longtimelurker]

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@Gunnar419 wrote:

And yes, it is possible to set up autopay to pay early, especially provided you're setting up autopay from your bank and not setting it up on the credit card account. Some card accounts have limitations on when you can pay.

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Right, this only works with predictable payments because of course the balance isn't available if you are doing it prestatement.  So as above, monitor to be careful that the charge doesn't change, e.g. Netflix upping its price!

[RockySC]

What exactly is the danger in letting the statement generate and letting it auto pay at that time? Does that hurt your score, not do anything at all, what? That is the part that makes little sense to me.

And yes, I don't mean totally forget about it. I just mean in terms of processing the payment. I monitor all of my accounts, even those I am not currently actively using.

[NotUsher]

I do this with my Nordstrom Visa. I don't go shopping at Nordstrom every month and can go sometimes quite a few months without a purchase there at all. I've kept Netflix charging to this account simply to ensure the card doesn't close. So far so good.

[user5387]

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@RockySC wrote:

What exactly is the danger in letting the statement generate and letting it auto pay at that time? Does that hurt your score, not do anything at all, what? That is the part that makes little sense to me.

And yes, I don't mean totally forget about it. I just mean in terms of processing the payment. I monitor all of my accounts, even those I am not currently actively using.

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FICO scoring takes into consideration the proportion of accounts with reported balances.

[RockySC]

Ah, so only let a statement generate for one or two and for the rest do as you guys have proposed - paying off before statement, got it.

[Leadberry]

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@RockySC wrote:

Ah, so only let a statement generate for one or two and for the rest do as you guys have proposed - paying off before statement, got it.

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This is only an issue if you plan on applying for new credit in the immediate future and want to maximize your score.