cancel
Showing results for 
Search instead for 
Did you mean: 

Spending a lot of $$ monthly on a credit card per month but paying off before reporting date

New Member

Spending a lot of $$ monthly on a credit card per month but paying off before reporting date

Will spending a lot of $$ on my credit card every month but paying it off before the reporting date improve my score more than charging a small amount and paying it off before the reporting date. Im trying to figure out if it is smart to charge almost everything to my card every month to get points or if that could be hurting my score.

Message 1 of 8
7 REPLIES
Regular Contributor

Re: Spending a lot of $$ monthly on a credit card per month but paying off before reporting date

If you pay it off before the reporting date (to the CRAs) it won't matter if you're charging $1 or $10,000.  That being said, it will matter to the individual creditor who might give you more/bigger CLI if you're using their card a lot.  But score wise, it doesn't matter.  Remember to let 1%-9% of your credit limit report every month to show use.

AMEX True Earnings (14k) || Discover IT (10k) || Chase Sapphire Preferred (6k) || Chase Freedom (6k) || Citi ThankYou Preferred (6.3k) || GE CareCredit (4.9k) || Citi Double Cash (4.9k) || Sallie Mae (4k) || Best Buy (2k) || AMEX Blue Cash Everyday (2k) || Target REDcard (1.5k)
Message 2 of 8
Valued Contributor

Re: Spending a lot of $$ monthly on a credit card per month but paying off before reporting date

Yes, it is smart to charge almost everything to your card every month to get points, as long as you PIF.

TU FICO: 800 (2/1/14) | CK Score: 802 (2/1/14) | CS Score: 805 (2/1/14)

J.P. Morgan Palladium ($250k) | AmEx Platinum (NPSL) | AmEx SPG Personal/Business ($50k/$50k) | Citi Executive AAdvantage WEMC ($50k) | Citi Dividend WEMC ($50k) | Chase Sapphire Preferred VS ($50k) | Chase Ink Bold WEMC ($50k Flex) | Chase Ink Plus WEMC ($25k) | Chase Freedom VS ($25k) | Chase Freedom WMC ($25k) | Chase MileagePlus Explorer ($25k) | Chase Southwest RR Plus Business/Personal ($15k/$15k) | Barclays US Airways ($25k) | Barclays Hawaiian Airlines ($25k) | BofA Alaska Airlines ($10k) | Lexus Financial Services ($30k) | Mercedes-Benz Financial Services ($50k)
Message 3 of 8
Mega Contributor

Re: Spending a lot of $$ monthly on a credit card per month but paying off before reporting date

I use my cards for everything . I buy everything from burgers to groceries.  I also use shop Discover to get an extra 5 percent and then go to Walmart and pick it up. Since doing that I started getting upgrades and CLI's. Not to mention more money in my pocket. 

Discover IT $17k / US Bank Ace (VSig) $13.5K / US Bank Cash+ (VSig) $13.5k
Sam's Mastercard $13.5k / Walmart Mastercard $10k / Blispay $7.5k PayPal Ex MC $6.1k
CareCredit 5k / Husq $5k / Cap1 QS $4.5k / Barclay Ring $4.85k / Citi DC (WMC) $7.1k
Gardening Date 7/01/16 / MyFico 08: EQ 801 / TU 777 / EX 771 / 06/08/17
Message 4 of 8
Super Contributor

Re: Spending a lot of $$ monthly on a credit card per month but paying off before reporting date


coldnmn wrote:

I use my cards for everything . I buy everything from burgers to groceries.  I also use shop Discover to get an extra 5 percent and then go to Walmart and pick it up. Since doing that I started getting upgrades and CLI's. Not to mention more money in my pocket. 


Right, lots of neat little tricks to maximize cashback.

 

For instance, select electronics store with US Bank Cash+.  Use the card to purchase a BB GC through shopdiscover for the 10% roe potential.  Then, use GC through shopdiscover again for another 5% potential.  All in all, can have 15% cashback on a single purchase.  Won't make one wealthy, but sure is fun to try.  Smiley Happy  

 

In all cases, PIF as Bibro alluded to is essential when pushing all of one's bills through a rewards CC.

Message 5 of 8
Mega Contributor

Re: Spending a lot of $$ monthly on a credit card per month but paying off before reporting date

I also pay insurance,  electricity, phone, and satellite bills anything I can for the awards. If I don't I feel its my money I left on the table.

Discover IT $17k / US Bank Ace (VSig) $13.5K / US Bank Cash+ (VSig) $13.5k
Sam's Mastercard $13.5k / Walmart Mastercard $10k / Blispay $7.5k PayPal Ex MC $6.1k
CareCredit 5k / Husq $5k / Cap1 QS $4.5k / Barclay Ring $4.85k / Citi DC (WMC) $7.1k
Gardening Date 7/01/16 / MyFico 08: EQ 801 / TU 777 / EX 771 / 06/08/17
Message 6 of 8
Super Contributor

Re: Spending a lot of $$ monthly on a credit card per month but paying off before reporting date


Open123 wrote:

coldnmn wrote:

I use my cards for everything . I buy everything from burgers to groceries.  I also use shop Discover to get an extra 5 percent and then go to Walmart and pick it up. Since doing that I started getting upgrades and CLI's. Not to mention more money in my pocket. 


Right, lots of neat little tricks to maximize cashback.

 

For instance, select electronics store with US Bank Cash+.  Use the card to purchase a BB GC through shopdiscover for the 10% roe potential.  Then, use GC through shopdiscover again for another 5% potential.  All in all, can have 15% cashback on a single purchase.  Won't make one wealthy, but sure is fun to try.  Smiley Happy  

 

In all cases, PIF as Bibro alluded to is essential when pushing all of one's bills through a rewards CC.


And keep looking for possibilities.  I've been spending a lot (~10K this year) at my vet.  Since they don't take my Fidelity Amex, I've been charging it to Cap One to get the 1.5%.  However, yesterday looking at my online statement, I discovered the category (as this is an animal hospital) is Charity and Social Service Organizations.  So, maybe I can get 5% back using US Cash Plus once I am allowed to switch categories in Oct.  This would of course be a gross misuse of "Charity" but if the MCC code works...

Message 7 of 8
Highlighted
Super Contributor

Re: Spending a lot of $$ monthly on a credit card per month but paying off before reporting date


longtimelurker wrote:

Open123 wrote:

coldnmn wrote:

I use my cards for everything . I buy everything from burgers to groceries.  I also use shop Discover to get an extra 5 percent and then go to Walmart and pick it up. Since doing that I started getting upgrades and CLI's. Not to mention more money in my pocket. 


Right, lots of neat little tricks to maximize cashback.

 

For instance, select electronics store with US Bank Cash+.  Use the card to purchase a BB GC through shopdiscover for the 10% roe potential.  Then, use GC through shopdiscover again for another 5% potential.  All in all, can have 15% cashback on a single purchase.  Won't make one wealthy, but sure is fun to try.  Smiley Happy  

 

In all cases, PIF as Bibro alluded to is essential when pushing all of one's bills through a rewards CC.


And keep looking for possibilities.  I've been spending a lot (~10K this year) at my vet.  Since they don't take my Fidelity Amex, I've been charging it to Cap One to get the 1.5%.  However, yesterday looking at my online statement, I discovered the category (as this is an animal hospital) is Charity and Social Service Organizations.  So, maybe I can get 5% back using US Cash Plus once I am allowed to switch categories in Oct.  This would of course be a gross misuse of "Charity" but if the MCC code works...


Right, and also I noticed the purchase of Opera tickets are classified as "charity," and should receive the 5% if used on the US Bank Cash+ if "charity" has been chosen.

Message 8 of 8