topic Re: Multple payments in one month. Does it help? in Credit Cards

Multple payments in one month. Does it help?

Anonymous — Thu, 11 Feb 2016 19:57:37 GMT

Does it help to make one than one monthly payment ? I know that it is a tend in Motgage loans, but is thee any eason to do it fo a cedit card?

Re: Multple payments in one month. Does it help?

Chris679 — Thu, 11 Feb 2016 20:02:46 GMT

@Anonymous wrote:
Does it help to make one than one monthly payment ? I know that it is a tend in Motgage loans, but is thee any eason to do it fo a cedit card?

Any time you are paying interest you can cut down on that by a fraction by making payments more often. Since the interest is calculated daily you save a bit. If you are paying your balance in full each month then you would generally have a grace period on your card so paying more often doesn't benefit you.

Re: Multple payments in one month. Does it help?

Anonymous — Thu, 11 Feb 2016 20:11:23 GMT

@Chris679 wrote:
@Anonymous wrote:
Does it help to make one than one monthly payment ? I know that it is a tend in Motgage loans, but is thee any eason to do it fo a cedit card?
Any time you are paying interest you can cut down on that by a fraction by making payments more often. Since the interest is calculated daily you save a bit. If you are paying your balance in full each month then you would generally have a grace period on your card so paying more often doesn't benefit you.

So it helps if you carry a balance to counteract the daily interest?

Re: Multple payments in one month. Does it help?

Anonymous — Thu, 11 Feb 2016 20:24:11 GMT

Credit cards usually do not charge "daily interest", yet you have a grace period to avoid the accumulation of interest at the end of the month. Thats why it is recommended to always pay in full before the statement cuts, this avoides any interest charges.

Paying you monthly bill in one payment or 100 payments makes no difference to the bank. If it's more convenient to pay the bill everytime you use the card then so be it but the bank wont praise you for it.

Re: Multple payments in one month. Does it help?

Anonymous — Thu, 11 Feb 2016 20:31:34 GMT

I dont think it helps or hurts. 95% of my charges I pay instantly or the next day. My checking account looks a hot mess, but this way I keep track of everything daily. I know its overkill. I just dont like pending charges on cards or how they take so long to post. This way I know my balance every minute.

Do what works best for you. If you need to manage your money and avoid debt, and paying off your cards weekly or daily helps, then go for it. But dont go paying more than once a month to help your score. Its WHEN you pay that matters most (before statment cut date, not the due date). I would say how much you pay matters a little less once you have higher limits.

Re: Multple payments in one month. Does it help?

Anonymous — Thu, 11 Feb 2016 20:42:20 GMT

@Anonymous wrote:
I dont think it helps or hurts. 95% of my charges I pay instantly or the next day. My checking account looks a hot mess, but this way I keep track of everything daily. I know its overkill. I just dont like pending charges on cards or how they take so long to post. This way I know my balance every minute.

Do what works best for you. If you need to manage your money and avoid debt, and paying off your cards weekly or daily helps, then go for it. But dont go paying more than once a month to help your score. Its WHEN you pay that matters most (before statment cut date, not the due date). I would say how much you pay matters a little less once you have higher limits.

I use the same strategy and pay off my charges as soon as they are posted. However, I was recently informed that one of the key factors adversely affecting
my credit score is " No recent revolving balance."

Do you think it is a good idea to leave a small balance on one card at the statement date and then pay it right after the statement closes?

Re: Multple payments in one month. Does it help?

Mattopotamus — Thu, 11 Feb 2016 20:47:29 GMT

@Anonymous wrote:
@Anonymous wrote:
I dont think it helps or hurts. 95% of my charges I pay instantly or the next day. My checking account looks a hot mess, but this way I keep track of everything daily. I know its overkill. I just dont like pending charges on cards or how they take so long to post. This way I know my balance every minute.

Do what works best for you. If you need to manage your money and avoid debt, and paying off your cards weekly or daily helps, then go for it. But dont go paying more than once a month to help your score. Its WHEN you pay that matters most (before statment cut date, not the due date). I would say how much you pay matters a little less once you have higher limits.
I use the same strategy and pay off my charges as soon as they are posted. However, I was recently informed that one of the key factors adversely affecting
my credit score is " No recent revolving balance."

Do you think it is a good idea to leave a small balance on one card at the statement date and then pay it right after the statement closes?

The best thing to do is always have one card report a balance (let a statement cut) so you have utlitzation. I have 3 cards that I use on a regualr basis. Two of those cards I pay off as soon as the charges change from pending to posted. The 3rd card I actually let cut a statement so my utlization shows between 1-2%. If you are not letting any payments post you are not hurting your scores, but you are also not maximizing your potential.

This is why I am not a big fan of charge cards, unless you have another card you actually let cut a statement. For me, my everyday card is what I let cut a statement.

Re: Multple payments in one month. Does it help?

Anonymous — Thu, 11 Feb 2016 20:55:33 GMT

@Mattopotamus wrote:
@Anonymous wrote:
@Anonymous wrote:
I dont think it helps or hurts. 95% of my charges I pay instantly or the next day. My checking account looks a hot mess, but this way I keep track of everything daily. I know its overkill. I just dont like pending charges on cards or how they take so long to post. This way I know my balance every minute.

Do what works best for you. If you need to manage your money and avoid debt, and paying off your cards weekly or daily helps, then go for it. But dont go paying more than once a month to help your score. Its WHEN you pay that matters most (before statment cut date, not the due date). I would say how much you pay matters a little less once you have higher limits.
I use the same strategy and pay off my charges as soon as they are posted. However, I was recently informed that one of the key factors adversely affecting
my credit score is " No recent revolving balance."

Do you think it is a good idea to leave a small balance on one card at the statement date and then pay it right after the statement closes?
The best thing to do is always have one card report a balance (let a statement cut) so you have utlitzation. I have 3 cards that I use on a regualr basis. Two of those cards I pay off as soon as the charges change from pending to posted. The 3rd card I actually let cut a statement so my utlization shows between 1-2%. If you are not letting any payments post you are not hurting your scores, but you are also not maximizing your potential.

This is why I am not a big fan of charge cards, unless you have another card you actually let cut a statement. For me, my everyday card is what I let cut a statement.

Thanks, that makes sense as far as revolving accounts go. I am scared to let a balance post on my BofA Cash Rewards because it has recently become a Visa Signature and flexible spending account - which I believe reports the high balance, rather than the credit limit? I feel there are so many variables that it is easy to be tricked when you try to follow the best strategy for you.

Re: Multple payments in one month. Does it help?

Anonymous — Thu, 11 Feb 2016 21:04:20 GMT

yes. I always carry a balance on 1-2 cards if they are in a no interest promo. Lately it has been Amazon and Citi DC. But I'd be lying if I said making this many payments doesnt make me paranoid/nervous. I guess because doing it is so easy and the savings is tremendous. Almost a too good to be true thing.
@Anonymous wrote:
@Anonymous wrote:
I dont think it helps or hurts. 95% of my charges I pay instantly or the next day. My checking account looks a hot mess, but this way I keep track of everything daily. I know its overkill. I just dont like pending charges on cards or how they take so long to post. This way I know my balance every minute.

Do what works best for you. If you need to manage your money and avoid debt, and paying off your cards weekly or daily helps, then go for it. But dont go paying more than once a month to help your score. Its WHEN you pay that matters most (before statment cut date, not the due date). I would say how much you pay matters a little less once you have higher limits.
I use the same strategy and pay off my charges as soon as they are posted. However, I was recently informed that one of the key factors adversely affecting
my credit score is " No recent revolving balance."

Do you think it is a good idea to leave a small balance on one card at the statement date and then pay it right after the statement closes?

Re: Multple payments in one month. Does it help?

Mattopotamus — Thu, 11 Feb 2016 21:06:38 GMT

@Anonymous wrote:
@Mattopotamus wrote:
@Anonymous wrote:
@Anonymous wrote:
I dont think it helps or hurts. 95% of my charges I pay instantly or the next day. My checking account looks a hot mess, but this way I keep track of everything daily. I know its overkill. I just dont like pending charges on cards or how they take so long to post. This way I know my balance every minute.

Do what works best for you. If you need to manage your money and avoid debt, and paying off your cards weekly or daily helps, then go for it. But dont go paying more than once a month to help your score. Its WHEN you pay that matters most (before statment cut date, not the due date). I would say how much you pay matters a little less once you have higher limits.
I use the same strategy and pay off my charges as soon as they are posted. However, I was recently informed that one of the key factors adversely affecting
my credit score is " No recent revolving balance."

Do you think it is a good idea to leave a small balance on one card at the statement date and then pay it right after the statement closes?
The best thing to do is always have one card report a balance (let a statement cut) so you have utlitzation. I have 3 cards that I use on a regualr basis. Two of those cards I pay off as soon as the charges change from pending to posted. The 3rd card I actually let cut a statement so my utlization shows between 1-2%. If you are not letting any payments post you are not hurting your scores, but you are also not maximizing your potential.

This is why I am not a big fan of charge cards, unless you have another card you actually let cut a statement. For me, my everyday card is what I let cut a statement.
Thanks, that makes sense as far as revolving accounts go. I am scared to let a balance post on my BofA Cash Rewards because it has recently become a Visa Signature and flexible spending account - which I believe reports the high balance, rather than the credit limit? I feel there are so many variables that it is easy to be tricked when you try to follow the best strategy for you.

I would make that your card you PIF before the statements cut. Like you said, they just report a balance and it does not show a credit limit.

Re: Multple payments in one month. Does it help?

Anonymous — Thu, 11 Feb 2016 21:13:53 GMT

ahhh I think we have some possibly outdated info here, that was true a year or two ago. These accounts will show as felexible spending, yes, and like other cards you can see the high balances, yes, but you still see the total credit limit.

this was back when people were trying to downgrade their cards because the scoring model was different then, and these flexible spending cards were a little different, er a lot different, in scoring.

Re: Multple payments in one month. Does it help?

Anonymous — Thu, 11 Feb 2016 21:24:03 GMT

@Anonymous wrote:
@Anonymous wrote:
I dont think it helps or hurts. 95% of my charges I pay instantly or the next day. My checking account looks a hot mess, but this way I keep track of everything daily. I know its overkill. I just dont like pending charges on cards or how they take so long to post. This way I know my balance every minute.

Do what works best for you. If you need to manage your money and avoid debt, and paying off your cards weekly or daily helps, then go for it. But dont go paying more than once a month to help your score. Its WHEN you pay that matters most (before statment cut date, not the due date). I would say how much you pay matters a little less once you have higher limits.
I use the same strategy and pay off my charges as soon as they are posted. However, I was recently informed that one of the key factors adversely affecting
my credit score is " No recent revolving balance."

Do you think it is a good idea to leave a small balance on one card at the statement date and then pay it right after the statement closes?

If your goal is to maximize your score because you're looking to buy a home or car (for example) then keeping your utilization low can be helpful. However not allowing any balances to report on a credit card can have a negative impact on your score.

Re: Multple payments in one month. Does it help?

Anonymous — Thu, 11 Feb 2016 21:25:26 GMT

@Anonymous wrote:
ahhh I think we have some possibly outdated info here, that was true a year or two ago. These accounts will show as felexible spending, yes, and like other cards you can see the high balances, yes, but you still see the total credit limit.
this was back when people were trying to downgrade their cards because the scoring model was different then, and these flexible spending cards were a little different, er a lot different, in scoring.

Thank you for clarifying! I almost tried to downgrade too just to have my CL show Sorry for sharing outdated info

Re: Multple payments in one month. Does it help?

Anonymous — Thu, 11 Feb 2016 21:36:31 GMT

@Anonymous wrote:
@Mattopotamus wrote:
@Anonymous wrote:
@Anonymous wrote:
I dont think it helps or hurts. 95% of my charges I pay instantly or the next day. My checking account looks a hot mess, but this way I keep track of everything daily. I know its overkill. I just dont like pending charges on cards or how they take so long to post. This way I know my balance every minute.

Do what works best for you. If you need to manage your money and avoid debt, and paying off your cards weekly or daily helps, then go for it. But dont go paying more than once a month to help your score. Its WHEN you pay that matters most (before statment cut date, not the due date). I would say how much you pay matters a little less once you have higher limits.
I use the same strategy and pay off my charges as soon as they are posted. However, I was recently informed that one of the key factors adversely affecting
my credit score is " No recent revolving balance."

Do you think it is a good idea to leave a small balance on one card at the statement date and then pay it right after the statement closes?
The best thing to do is always have one card report a balance (let a statement cut) so you have utlitzation. I have 3 cards that I use on a regualr basis. Two of those cards I pay off as soon as the charges change from pending to posted. The 3rd card I actually let cut a statement so my utlization shows between 1-2%. If you are not letting any payments post you are not hurting your scores, but you are also not maximizing your potential.

This is why I am not a big fan of charge cards, unless you have another card you actually let cut a statement. For me, my everyday card is what I let cut a statement.
Thanks, that makes sense as far as revolving accounts go. I am scared to let a balance post on my BofA Cash Rewards because it has recently become a Visa Signature and flexible spending account - which I believe reports the high balance, rather than the credit limit? I feel there are so many variables that it is easy to be tricked when you try to follow the best strategy for you.

IIRC CCC used to report information this way, but they don't anymore. There are several older threads that discuss this issue.