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Established Member
mrpeabody
Posts: 14
Registered: ‎02-13-2008
0

Payments every 5 days.

I am a waiter and I have been adding my tips every week, and paying a % to my credit cards. Is there anything wrong, in the eyes of the bank (citi), if I pay so frequently?
Senior Contributor
score_building
Posts: 3,578
Registered: ‎01-10-2008
0

Re: Payments every 5 days.


mrpeabody wrote:
I am a waiter and I have been adding my tips every week, and paying a % to my credit cards. Is there anything wrong, in the eyes of the bank (citi), if I pay so frequently?


 

yes - so to avoid potential concern that you are struggling to pay, try to limit payments to a couple of times a month (or just once a month ideally).

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
Established Contributor
Mike14
Posts: 618
Registered: ‎09-16-2008
0

Re: Payments every 5 days.

As long as they let you pay that often, I don't think they'd have any problem.  Some credit cards only let you pay 4 times a month (online, anyway) so just make sure you have at least paid the minimum amount due with the first few payments.

 

I don't think it looks like you're having trouble paying if you are paying!

Wife's FICO Scores, 7/10/09: TU:??? EQ:634 EX: ???
Wife's FICO Scores, 2/13/09: TU:??? EQ:604 EX: 630
Wife's FICO Scores, 2/05/09: TU:??? EQ:592 EX: 630
My FICO Scores, 6/19/09: TU:757 EQ:744 EX:758 (all from MB; EQ Agrees)
My FICO Scores, 3/29/09: TU:755 EQ:746 EX: ???
My FICO Scores, 2/05/09: TU:??? EQ:730 EX: 720
Established Member
mrpeabody
Posts: 14
Registered: ‎02-13-2008
0

Re: Payments every 5 days.

I always pay more then the min. Usually $150 or 200 a week. Average balance about 700-1000 every month.

Established Contributor
Mike14
Posts: 618
Registered: ‎09-16-2008
0

Re: Payments every 5 days.

I just saw that you said it was Citi.  They do limit Citi-initiated online payments to 4 per cycle, but I think you can mail in, or use online bill-pay as many times as you want.

 

If you paid them $30 every day, I think they'd be happy to get it and they wouldn't think you were struggling to pay!

Wife's FICO Scores, 7/10/09: TU:??? EQ:634 EX: ???
Wife's FICO Scores, 2/13/09: TU:??? EQ:604 EX: 630
Wife's FICO Scores, 2/05/09: TU:??? EQ:592 EX: 630
My FICO Scores, 6/19/09: TU:757 EQ:744 EX:758 (all from MB; EQ Agrees)
My FICO Scores, 3/29/09: TU:755 EQ:746 EX: ???
My FICO Scores, 2/05/09: TU:??? EQ:730 EX: 720
Established Contributor
mt2va
Posts: 532
Registered: ‎03-20-2009
0

Re: Payments every 5 days.


score_building wrote:

mrpeabody wrote:
I am a waiter and I have been adding my tips every week, and paying a % to my credit cards. Is there anything wrong, in the eyes of the bank (citi), if I pay so frequently?


 

yes - so to avoid potential concern that you are struggling to pay, try to limit payments to a couple of times a month (or just once a month ideally).


I've never heard of this before.  I just finally got my 1st CC after not having any for a long time due to messing up & they were charged off.  I've made 4 payments on it already.  So are they going to think that is bad.  The 1st statement hasn't even hit yet.  Like another poster I would think they would be happy to have the money whenever I send it in.  The payments I sent in are all more than the minimum due.  I've just been sending money when I received it to cover items I charged. 

Starting Scores 10/12: EQ 460 (FICO)/TU 502 (FAKO)/EX 474 (FAKO)
Current (7/14): EQ 572 (FICO)/TU 624 (FICO)/ EX 612 (FICO)



Senior Contributor
score_building
Posts: 3,578
Registered: ‎01-10-2008
0

Re: Payments every 5 days.


Mike14 wrote:

As long as they let you pay that often, I don't think they'd have any problem.  Some credit cards only let you pay 4 times a month (online, anyway) so just make sure you have at least paid the minimum amount due with the first few payments.

 

I don't think it looks like you're having trouble paying if you are paying!


i happen to agree with you-unfortunately what you and i think is inconsequential:  the fact is that frequent, scattered payments is considered suboptimal if you want your acct to be shed in the best possible light with any creditor generally speaking.  in fact most creditors do limit the number of payments you can make per period for this reason. 

 

there have many discussions about this.  the bottom line is that it is NOT advisable to make multiple small payments if it can be avoided since it can give an issuer pause.  if this has always been your pattern they may not care as much but i definitely wouldn't suddenly begin to do this if you haven't been doing it all along.  YMMV but why not avoid pitfalls that may cause unnecessary alarm if we can?

 

 

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
Established Contributor
Mike14
Posts: 618
Registered: ‎09-16-2008
0

Re: Payments every 5 days.


score_building wrote:

 

there have many discussions about this.  the bottom line is that it is NOT advisable to make multiple small payments if it can be avoided since it can give an issuer pause.  if this has always been your pattern they may not care as much but i definitely wouldn't suddenly begin to do this if you haven't been doing it all along.  YMMV but why not avoid pitfalls that may cause unnecessary alarm if we can?

 

 


 

And I've heard that CCCs may get scared if you charge groceries on your card, thinking that you're in trouble if you charge everyday items.  Well I've charged every grocery to one card or another.  I used to charge them all on my Citibank card for the 3% reward but then they dropped it to 2% so I started putting them on my Chase card for their 3% and Chase didn't seem to care one bit.  And neither did I.

 

To the OP: do whatever you feel you need to do to get your balance down to $0, then try to not carry one anymore.

Wife's FICO Scores, 7/10/09: TU:??? EQ:634 EX: ???
Wife's FICO Scores, 2/13/09: TU:??? EQ:604 EX: 630
Wife's FICO Scores, 2/05/09: TU:??? EQ:592 EX: 630
My FICO Scores, 6/19/09: TU:757 EQ:744 EX:758 (all from MB; EQ Agrees)
My FICO Scores, 3/29/09: TU:755 EQ:746 EX: ???
My FICO Scores, 2/05/09: TU:??? EQ:730 EX: 720
Senior Contributor
score_building
Posts: 3,578
Registered: ‎01-10-2008
0

Re: Payments every 5 days.

many creditors consider payment once a month to be optimal.  if you establish an atypical payment history  just be aware that this may or not be problematic depending on other factors being considered by the lender. 

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
Regular Contributor
UpNUp
Posts: 139
Registered: ‎08-20-2008
0

Re: Payments every 5 days.

score_building:

I'm in complete agreement with you.

 

What is the point making a payment every 5 days? As a creditor, in this credit climate,  I can see where it may cause concern. Just my opinion.


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