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ZEBRAZ
Posts: 1
Registered: ‎06-24-2009
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Re: Payments every 5 days.

Actually, Citi likes receiving more than 1 payment per month. Additionally, Citi also like the monthly total to be more than the minimun per month.  With no more than the 4 monthly payments.  So you might want to consider once per week.

 

Citi does look @ the total number of Credit Cards and their lines of credit & outstanding balances.  So if these dont increase than you shouldn't have a problem.

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score_building
Posts: 3,559
Registered: ‎01-10-2008
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Re: Payments every 5 days.


ZEBRAZ wrote:

Actually, Citi likes receiving more than 1 payment per month. Additionally, Citi also like the monthly total to be more than the minimun per month.  With no more than the 4 monthly payments.  So you might want to consider once per week.

 

Citi does look @ the total number of Credit Cards and their lines of credit & outstanding balances.  So if these dont increase than you shouldn't have a problem.


source? 

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
New Member
FicoWatcher
Posts: 5
Registered: ‎06-24-2009
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Re: Payments every 5 days.

It does not matter how many payments you make.  I have 3 Citicards and make several payments on each per month.  I've had these cards for years and have a very high FICO score, so it's certainly not being reported negatively.

 

Common sense must prevail.  Banks are happy to be paid at all, and if they get paid earlier than not at all, all the better.  They may lose a little in interest for those who carry a balance, but it will not have a negative affect for you as the borrower.

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sparkygirl
Posts: 1
Registered: ‎06-25-2009
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Re: Payments every 5 days.

I have one credit card that I use for almost every purchase I make, including every day items such as gas and groceries. I have been doing this for years. I just find it easier to keep track of what I am spending and I don't like to use my ATM from my bank account. I have an automatic payment out of my checking account to this credit card every Wednesday. If I spend more one month, I will make an extra payment. Or if my spending is low that month, I will cancel a payment. I have done this for years and I have never had any questions or problems doing this.
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Participant
Posts: 1
Registered: ‎06-27-2009
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Re: Payments every 5 days.

Not for them, but for you.  First of all, credit cards are one of the worst ways to finance yourself, second to little other than loansharks.  Not only do you pay a high %, but you pay it on the average outstanding balance for the month, so your payments every five days might not affect your interest charges as much as you think.  So you should pay the cards off entirely and borrow from another source if you must, or better yet, curtail your expenditures to fit within what you can afford.  Once you pay off the outstanding debt, it is in your interest to pay off the future monthly bills exactly when due, and not before.  Why?  Because then YOU make the "float", the value your money can earn while it remains in your hands.  So if you have an interest bearing account, and your money sits in it two weeks longer, that is two weeks more interest YOU earn.  If you pay Citi early, THEY earn the float instead of you.  Now, you don't want to give them any extra money, do you? Didn't think so.  : ) Good luck.
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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Payments every 5 days.


Participant wrote:
Not for them, but for you.  First of all, credit cards are one of the worst ways to finance yourself, second to little other than loansharks.  Not only do you pay a high %, but you pay it on the average outstanding balance for the month, so your payments every five days might not affect your interest charges as much as you think.  So you should pay the cards off entirely and borrow from another source if you must, or better yet, curtail your expenditures to fit within what you can afford.  Once you pay off the outstanding debt, it is in your interest to pay off the future monthly bills exactly when due, and not before.  Why?  Because then YOU make the "float", the value your money can earn while it remains in your hands.  So if you have an interest bearing account, and your money sits in it two weeks longer, that is two weeks more interest YOU earn.  If you pay Citi early, THEY earn the float instead of you.  Now, you don't want to give them any extra money, do you? Didn't think so.  : ) Good luck.

Hi, welcome to the forums!

What you say is true, for those who carry balances, or are trying to get out of CC debt. You'll find after reading around here for a while that a lot of us never carry balances or pay interest --we just use plastic for convenience and rewards and settle our bills at the end of the month in the old-fashioned way. So the question of multiple payments through the month can be just as relevant for us PIF'ers. (PIF = pay in full)
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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DebtFreeMD
Posts: 30
Registered: ‎04-06-2009
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Re: Payments every 5 days.

I too pay cc payments often during the month.  In March I paid off all my debt (except mortgage) in one fell swoop - about $25,000 worth, including my car. I was fed up with the antics of banks/cc companies etc. and decided to go back to the 'good ole days' - if I don't have the money to pay for it, I don't need it. 

 

Now  I try to only use cc's that benefit me in some way - usually rewards for buying gas/groceries/etc.  Although I also keep my Amex and my credit union VISA - I use them once in awhile to be sure the creditor does not cancel them. Once I paid them all off I did get two new cards - strictly for the rewards - 1 for rewards on gas and the other a Walmart Discover to get the 12 months same as cash deal.

 

I always have the money for what I spend - or in the case of the 12 months SAC I have that amount in my budget monthly.  I frequently go to the grocery store, charge the groceries, come home and send out the check online for the purchase.  Not only does this make sure I don't spend the money elsewhere, I'm sure to never miss a payment and always make the minimum, but since all the cards report at different times of the month, my balance/utilization rate stays at zero or close to it. Since not everything I buy has a reward attached, I spread my purchases out among different cards.

 

Not a single card has complained, nor have I been penalized in any way.  And, my credit score has only gone up - I'm currently at around 711 FICO through ScoreWatch.

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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Payments every 5 days.


DebtFreeMD wrote:

I too pay cc payments often during the month.  In March I paid off all my debt (except mortgage) in one fell swoop - about $25,000 worth, including my car. I was fed up with the antics of banks/cc companies etc. and decided to go back to the 'good ole days' - if I don't have the money to pay for it, I don't need it. 

 

Now  I try to only use cc's that benefit me in some way - usually rewards for buying gas/groceries/etc.  Although I also keep my Amex and my credit union VISA - I use them once in awhile to be sure the creditor does not cancel them. Once I paid them all off I did get two new cards - strictly for the rewards - 1 for rewards on gas and the other a Walmart Discover to get the 12 months same as cash deal.

 

I always have the money for what I spend - or in the case of the 12 months SAC I have that amount in my budget monthly.  I frequently go to the grocery store, charge the groceries, come home and send out the check online for the purchase.  Not only does this make sure I don't spend the money elsewhere, I'm sure to never miss a payment and always make the minimum, but since all the cards report at different times of the month, my balance/utilization rate stays at zero or close to it. Since not everything I buy has a reward attached, I spread my purchases out among different cards.

 

Not a single card has complained, nor have I been penalized in any way.  And, my credit score has only gone up - I'm currently at around 711 FICO through ScoreWatch.



Good tactic!

Just curious, is there a reason that you still write and mail paper checks? I pay online, either from my online bank account or from the CC site. Never a problem, and I still keep an old-fashioned checkbook register, where I write down the confirmation number and subtract the amount from my running balance. Sort of the best of both worlds!

I just really don't trust the mail any more, or the payment-handling people who supposedly get my check and post it.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Member
DebtFreeMD
Posts: 30
Registered: ‎04-06-2009
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Re: Payments every 5 days.

You misread :smileyhappy:  I do pay online through my checking account.  I can't remember the last time I had a checkbook or a register - everything is debit card and online.

 

One of the side benefits of using online bill paying through my bank - which is BOA - is that if I do and the payment is not received - they take it up with the creditor.

 

For instance, was having a running dispute with my HOA.  I paid my fee, like I have for the last 25 years, but they 'couldn't find the check' and said it had never been received.  My guess was it went into 'the circular file' because of the dispute.  They sent me notice I was in default, and according to the covenant, they could sue me, put a lein on my house, and ALL the lawyers fees would be on me.  Nusiance and intimidation value - or so they thought.

 

I contacted BOA online about the payment, BOA contacted the HOA and told them unequivocally that I had made the payment, and on time.   BOA told them evidently had been lost in the mail and they'd send a fresh check.  Your claim that "I sent the check" has a lot more credence when a major bank says you did.  They knew they'd have a really hard time if they sued me :smileywink:

 

I've had a credit card company remove late fees when BOA told them I sent the check - and on time.

 

It's about the only thing I like about BOA - but it sure comes in handy.

 

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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Payments every 5 days.

Gotcha. Calling it "the check" confused me.

What a fun HOA you belong to! :smileysurprised: There's something to be said for living out in the sticks, I guess.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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