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Using card for auto payment

Super Contributor

Using card for auto payment

I was thinking about using my chase freedom card for auto payment for things like the gym etc where the payment would come out on the first of the month each month. I spoke with the chase rep and she indicated my statement is issued on the first of the month and that they report to the credit agencies occurs the same day. So if I want to report a zero balance and I pay everything off like three days before the end of the month and then the statement issues on the first, the same day the card gets charged for the monthly gym membership will a balance be reported to the CRAs? If so, what is the best way to handle this? Adjust my payment due date?

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Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 826 4/16/17, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 1 of 8
7 REPLIES
Established Contributor

Re: Using card for auto payment


red259 wrote:

I was thinking about using my chase freedom card for auto payment for things like the gym etc where the payment would come out on the first of the month each month. I spoke with the chase rep and she indicated my statement is issued on the first of the month and that they report to the credit agencies occurs the same day. So if I want to report a zero balance and I pay everything off like three days before the end of the month and then the statement issues on the first, the same day the card gets charged for the monthly gym membership will a balance be reported to the CRAs? If so, what is the best way to handle this? Adjust my payment due date?


Actually if your statement cuts on the 1st and your charges are also on the 1st, then it's highly unlikely that the charge would post before that statement cut. The reported balance is only for charges that have posted to the account. Anything that is still pending at the time of statement cut will not be reported, so I would say you'll be ok there.

 

Forgive me if I misunderstood your question.


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Message 2 of 8
Mega Contributor

Re: Using card for auto payment


red259 wrote:

I was thinking about using my chase freedom card for auto payment for things like the gym etc where the payment would come out on the first of the month each month. I spoke with the chase rep and she indicated my statement is issued on the first of the month and that they report to the credit agencies occurs the same day. So if I want to report a zero balance and I pay everything off like three days before the end of the month and then the statement issues on the first, the same day the card gets charged for the monthly gym membership will a balance be reported to the CRAs? If so, what is the best way to handle this? Adjust my payment due date?


Talk to the gym about switching your due date.




EQ FICO 548 3/3/16
Message 3 of 8
Super Contributor

Re: Using card for auto payment

I think you understood the question perfectly. I wasn't sure if pending transactions would be included in the balance reported to CRAs and believe your logic is sound that it would not be sent to the CRAs on such a short turnaround. Thank you.

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 826 4/16/17, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019
Message 4 of 8
Established Contributor

Re: Using card for auto payment


red259 wrote:

I think you understood the question perfectly. I wasn't sure if pending transactions would be included in the balance reported to CRAs and believe your logic is sound that it would not be sent to the CRAs on such a short turnaround. Thank you.


Very welcome...I can speak from experience that pending charges will not be included in your reported balance. Smiley Happy But keep in mind, if you charge something a day or two before the statement cuts, some lenders are notorious for posting them real quick so they hit your closing statement. YMMV as always.


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Message 5 of 8
Established Contributor

Re: Using card for auto payment

Will Citi change the due date if you ask them?  GE changed a due date for me, because I told them I'd be able to give them more of my business if it reported at a different day of the month.


Starting Score: TU: 566
Current Score: TU: 741 (Discover FICO); EQ: 755 (MyFico) EX: 774 (FAKO)
Goal Score: 800

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Message 6 of 8
Frequent Contributor

Re: Using card for auto payment

Yes Citi will allow you to change the due date. I've done it twice. Both times online under the benefits & services tab. There's a drop down box with the available dates. For the date you want, I believe your request has to be made at least five days ahead of time. For example, if you want your new date to be the 6th, you need to make the request no later than the 1st. Otherwise, it won't be in that drop box.

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Current Score: EQ FICO 764 TU FICO 776 EX FICO 753
Goal Score: 800
Message 7 of 8
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Mega Contributor

Re: Using card for auto payment


shanac wrote:
Yes Citi will allow you to change the due date. I've done it twice. Both times online under the benefits & services tab. There's a drop down box with the available dates. For the date you want, I believe your request has to be made at least five days ahead of time. For example, if you want your new date to be the 6th, you need to make the request no later than the 1st. Otherwise, it won't be in that drop box.

You can change the due date but AFAIK you cant change the statement cut date.




EQ FICO 548 3/3/16
Message 8 of 8