topic Re: Swipe vs USAGE - Daily PIF in Credit Cards

Swipe vs USAGE - Daily PIF

Anonymous — Fri, 24 Jun 2016 18:34:02 GMT

So here is the question.

I have a QS1 with a measily 300 limit.

It has 1.5% CB which is nice enough for a beginner unsecure card.

My quesiton is can i make a charge of say 150 and next day pay it of and after it is paid off the following day again make another 150 card purchase etc. up to a few days before the report date of the card.

Then come time to report just leave a small 10% or < balance to report.

A would i get my cashe back on all the purchases spent and B am i safe doing this as long as i pay daily on the card.

I currently have 2 secure cards a 53rd and PNC.

Neither graduate in my experience and neither will offer me a an unsecure based on SP.

so my only choices here are run the carad game with QS1 and show i am good for spending and paying etcc, and then at 62 days do the CLI request and then wait for the 5-6month CLI auto and just wait till my CR gets a little better with some of the baddies falling off .

Is there a best reccomendation plan for using the others ? 10% no % rotate which ones get some percent etc... ?

Thaks for the tips .

You folks are pretty awesom in these parts

Re: Swipe vs USAGE - Daily PIF

NRB525 — Fri, 24 Jun 2016 19:28:46 GMT

Yes, by all means use $290 of that $300 QS card. Get the rewards. Pay it daily if necessary.

Utilization may appear "high percentage " but that's only a point in time measure, and really only relevant when the statement prints, not during the month. It shows good payment activity to Cap One and gets you a nice reward for your effort.

When you app for your next Cap One it will reflect well. If you want to control utilization for a future app, just plan your payments to get lower reported on a statement. By frequently paying, you should be able to develop an understanding of how long it takes for those payments to post through Cap One, to your available credit.

Re: Swipe vs USAGE - Daily PIF

Anonymous — Fri, 24 Jun 2016 19:46:06 GMT

Thanks for the feedback NRB. I have a few questions to clarify to make sure that i am on the same page as you.

"Yes, by all means use $290 of that $300 QS card. Get the rewards. Pay it daily if necessary."

So with this statement i am understanding that i use up $290 in a single day gainning 1.5% on that for cash back.

If i were to go home that night and post a payment to the card I would just be waiting for the payment to clear and then....

DO IT AGAIN !!! AHAHAH!! (Voice of Dextor Laboratory)

That leads me to the next part

"Utilization may appear "high percentage " but that's only a point in time measure, and really only relevant when the statement prints, not during the month."

I am not following on this part. If i am paying it on a daily basis the only people that would know it is a high utilization is the Cap one folks ( Who are seeing me pay it daily) and myself.

When it goes to report ( which i am still trying to understand when it reports vs when it is due) Just make sure the balance is small 8-10%

This would then be only 3% of my total CL as i have the 2 other secure cards at 300 as well. Is That ok ?

Now for another thought that came to mind based on this statement.

"It shows good payment activity to Cap One and gets you a nice reward for your effort.
When you app for your next Cap One it will reflect well. "

Do you have experience with QS or CAP1 as to whether they like this type of behavior or not or is this a universal duh thatmost CC like ? Sorry for the ignorance.

Also will i get rewards on all the money spent to the card even if it is more than the 300 limit ?

Thank again

Re: Swipe vs USAGE - Daily PIF

Anonymous — Fri, 24 Jun 2016 21:20:46 GMT

Credit cards are different than debit cards. When you do anything as debit, the funds are deducted from your checking account immediately.

When you use credit (either through a debit or a credit card), the funds are "authorized" but usually don't post for 2-5 days. You cannot pay them off or dispute them until your purchases officially post.

So the answer is no, you cannot charge $290 on your credit card one day, pay it off immediately, and then charge another $290 on it the next day to get all of the rewards. You need to wait for the charges to post to your account, pay them off, and then you can spend more money on your card after all of that happens.

Re: Swipe vs USAGE - Daily PIF

Anonymous — Fri, 24 Jun 2016 21:25:37 GMT

Hew Dew,

I should have known that really as my other 2 secure cards take a few days to post the transaction althoug the credit limit decreases right away.

That aside, If i pay it when I see it then and verify it went through by the credit limit going back to full, then that would be fine and I would effectivley be able to rock the 1.5% CB well beyond the 300 limit as long as i am paying it off immediately after using it.

Thank you.

Re: Swipe vs USAGE - Daily PIF

Anonymous — Fri, 24 Jun 2016 21:33:18 GMT

Most card lenders won't let you pay your balance off early.

If you try to pay online or whichever method you use, the lender will only let you pay up to the amount that's the current balance on the card, nothing more. The current balance is a total of cleared transactions that have posted to the card. If you have a card with a $5,000 credit line for example, you can have a $4,600 current balance and only $100 in avaliable credit because you just made a $300 purchase---at that point you'd only be able to pay ONLY on the $4,600, and not $4,900 of it.

Unless you have some bank or credit union with an outdated system that just lets you "transfer" funds from one account to your credit card with no checks in place, you cannot over pay on your credit card, and with those outdated systems, the bank would just send you a check for the negative balance on your account.

Re: Swipe vs USAGE - Daily PIF

Anonymous — Fri, 24 Jun 2016 21:48:40 GMT

Perhaps my question is not conveying what i am trying to accomplish currectly.

I am not trying to pre-pay (baloon pay) if you will more than my CL.

I am asking if I use within the CL up to 90% of it say, then it posts, then i pay it off, it will reset yes, the amount of credit available at some point in time that month ( probably within a few days) then i would be free to use the re-instated balance again and just keep doing that etc... being mindfull of the posting date so as not to max the card or maybe it doesnt matter, maybe it is good to max the card, then pay it off. Technically 270 of 900 (thats my total CL) is exactly 30% UTIL .

Look forward to hearing thoughts on this.

Re: Swipe vs USAGE - Daily PIF

Anonymous — Fri, 24 Jun 2016 22:01:39 GMT

Yes you can spend, pay, reset Balance and repeat. I did this with my QS1, it went from $3000 to over 10k now doing that. I got a $1000 increase than an a $4500 or something like that!

Re: Swipe vs USAGE - Daily PIF

Anonymous — Fri, 24 Jun 2016 22:27:27 GMT

WoW Chynnac !! Thats intense!

Do you mind sharing with me what your situation was and the time frame in which that took place.

Allot of people here are portraying that usage is not the whole 9 yards but the entire credit picture. I get that it makes sense. I guess my question is what did you CR profile look like during this time. Did you have any baddies at all on your account what was your AAoA (mine is 11years) this will shorten when some of my old cards fall off in a year or two but whatever to that.

I would like to know what to expect on my QS1.

My plan is to do what you did, blast the card im talking 2500 a month through it for the first 2 cycles then request an increase and continue on hoping to get a decent CLI then in another 3-4 months get the steps action on another CLI.

Then garden for another few months and start putting some sights on serious cards AMEX, CITI, CHASE.

Currently I am as follows for credit

FiCO 8 scores

EQ-610

TU - 613

EX - 625

Baddies

2 CO under 130

1 paid (370)

1 medical 699)

53 months since last 30 late

3 accounts ever that had 30/60 late

70%paa account

DTI is %80 on $600 (just closed on a house and now they will be 0)

AAoA - 92months

AoOA - 140months

AoMR - 24months this will soon change i just got the QS1

#RI - 4

That seems like a pretty detailed breakdown as i am trying to really track where i am with this vs others.

I may start another thread to gather attention for specifics of this but will see what kind of response i get here.

Thans again to all who stop by to read and remeber to let us know if you have experience in the topics discussed, that is where the value is and one day, you may need such value that may even be a direct result of somehting you shared and prospered someone else who then gave back so please comment if you know.

Never know how it will return to you at a later time

Thanks again

P.S. Income is greater that 100k

Re: Swipe vs USAGE - Daily PIF

Anonymous — Sat, 25 Jun 2016 02:30:17 GMT

Qs1 usual y let's you Pay up to 10% mote than your current balance. Not that IT helos much since rey will not hice you The extra Credit till the next charge clears. Another bit of information, cap one usually closes statement 3 days after bill due date. So do let them report 90% utl. After Bill due date. Good luck!

Re: Swipe vs USAGE - Daily PIF

core — Sat, 25 Jun 2016 08:31:34 GMT

@Anonymous wrote:
Most card lenders won't let you pay your balance off early.

Lenders do not have any control over when you make your payments when you push the payment from your bank.

In OP's case I'd just push a $1k payment to Cap One and use the card normally so I didn't have to pay it every couple days. Note that with Capital One it won't increase your available credit... some lenders it does work. Last time I tried it with Cap One was almost a year ago, though.

Re: Swipe vs USAGE - Daily PIF

Anonymous — Sat, 25 Jun 2016 09:50:54 GMT

@core wrote:
@Anonymous wrote:
Most card lenders won't let you pay your balance off early.
Lenders do not have any control over when you make your payments when you push the payment from your bank.

In OP's case I'd just push a $1k payment to Cap One and use the card normally so I didn't have to pay it every couple days. Note that with Capital One it won't increase your available credit... some lenders it does work. Last time I tried it with Cap One was almost a year ago, though.

I was going to mention this as well. Just push a payement, then spend as usuall.

Re: Swipe vs USAGE - Daily PIF

NRB525 — Sat, 25 Jun 2016 13:54:51 GMT

@Anonymous wrote:
Most card lenders won't let you pay your balance off early.

If you try to pay online or whichever method you use, the lender will only let you pay up to the amount that's the current balance on the card, nothing more. The current balance is a total of cleared transactions that have posted to the card. If you have a card with a $5,000 credit line for example, you can have a $4,600 current balance and only $100 in avaliable credit because you just made a $300 purchase---at that point you'd only be able to pay ONLY on the $4,600, and not $4,900 of it.

Unless you have some bank or credit union with an outdated system that just lets you "transfer" funds from one account to your credit card with no checks in place, you cannot over pay on your credit card, and with those outdated systems, the bank would just send you a check for the negative balance on your account.

well, let's be clear about timing. With Capital One, you can certainly pay the card down to zero, based on posted charges, and that is exactly what OP is planning to do:

Charge on day 1

The item posts to the account in 2 or 3 days.

Schedule an immediate payment through the Capital One site

Payment clears in 2 or 3 days.

I'm not certain on the exact number of days involved, but it's 3 on the outside for Capital One, they update rather quickly.

And this cycle can be repeated multiple times during the month. Charge, pay to zero, charge pay to zero.

Re: Swipe vs USAGE - Daily PIF

NRB525 — Sat, 25 Jun 2016 14:02:06 GMT

@Anonymous wrote:
Thanks for the feedback NRB. I have a few questions to clarify to make sure that i am on the same page as you.

"Yes, by all means use $290 of that $300 QS card. Get the rewards. Pay it daily if necessary."
So with this statement i am understanding that i use up $290 in a single day gainning 1.5% on that for cash back.
If i were to go home that night and post a payment to the card I would just be waiting for the payment to clear and then....
DO IT AGAIN !!! AHAHAH!! (Voice of Dextor Laboratory)

That leads me to the next part
"Utilization may appear "high percentage " but that's only a point in time measure, and really only relevant when the statement prints, not during the month."
I am not following on this part. If i am paying it on a daily basis the only people that would know it is a high utilization is the Cap one folks ( Who are seeing me pay it daily) and myself.
When it goes to report ( which i am still trying to understand when it reports vs when it is due) Just make sure the balance is small 8-10%
This would then be only 3% of my total CL as i have the 2 other secure cards at 300 as well. Is That ok ?

Now for another thought that came to mind based on this statement.
"It shows good payment activity to Cap One and gets you a nice reward for your effort.
When you app for your next Cap One it will reflect well. "

Do you have experience with QS or CAP1 as to whether they like this type of behavior or not or is this a universal duh thatmost CC like ? Sorry for the ignorance.
Also will i get rewards on all the money spent to the card even if it is more than the 300 limit ?

Thank again

Yes, you would earn the cashback on all the charges during the month, even if you managed to run $3k through there in new charges.

The amounts need to post to be certain you can schedule the payment, but that cycle should not take too long.

All CCC like you to use their card. AMEX puts some limits on how fast you can pay early on, but even they get used to the more-frequent payments. Capital One is one of the best for watching user behavior and then rewarding with higher limits on the next app. Sometimes folks get a CLI on the existing card, and given your $300 limit, this might happen after a few months, but I have no direct experience with that, only notes from many others here.

My Cap One experience is having a $10k Platinum card for years, getting it PC to a QS last year, getting denied for many CLI requests, then apping Venture and getting a $30k limit.

Yes, the mid-month utilization thing is only between you and Capital One. They have given you a $300 credit limit which you are free to use. They only want to be paid the money back, according to the terms you agreed to in your card agreement. The Utilization they report will only be from the statement balance, at that instant in time.

Re: Swipe vs USAGE - Daily PIF

Anonymous — Sat, 25 Jun 2016 14:10:41 GMT

I had scores in the 620-650 range when I got the card. I used it FOR EVERYTHING and I would pay several times a month. My limit was a couple Grand so it was easier but I used it alot. I think maybe month 4 I asked for a CLI and I got one I belive $2000, which made my limit 4k. Then I got another one like two months later for $4500 and then my credit steps. Use it and pay in full! That card opened the door for me. It actually made a year this werk that was my first car in repair.

Re: Swipe vs USAGE - Daily PIF

Anonymous — Sat, 25 Jun 2016 15:30:50 GMT

And this is why this site rocks!

Seriously thank you to all the folks who have chimed in to help me get a clearer picture of what i am trying to do and the insight to make informed decisions.

One question to AGC Henry. (As well as the rest of the group)

I just want to make sure i understand the effects here or desired outcome if you will.

I belive that you said in your experience that cap1 reports 3 days after due date, and that I should let it report.

Does it matter if i let the card report a hefty balance or a lean balance when it is cap 1 CLI that i have in my targets more than getting another card ? If i was targeting another card i think i would want to have low balances correct ? but right now i am looking to just get on the cap 1 good side if you will.

Looking forward to hearing thoughts on this.

Thanks again folks!!

Re: Swipe vs USAGE - Daily PIF

Anonymous — Sat, 25 Jun 2016 15:37:45 GMT

@Anonymous wrote:
And this is why this site rocks!
Seriously thank you to all the folks who have chimed in to help me get a clearer picture of what i am trying to do and the insight to make informed decisions.

One question to AGC Henry. (As well as the rest of the group)
I just want to make sure i understand the effects here or desired outcome if you will.
I belive that you said in your experience that cap1 reports 3 days after due date, and that I should let it report.
Does it matter if i let the card report a hefty balance or a lean balance when it is cap 1 CLI that i have in my targets more than getting another card ? If i was targeting another card i think i would want to have low balances correct ? but right now i am looking to just get on the cap 1 good side if you will.

Looking forward to hearing thoughts on this.

Thanks again folks!!

The due date is for the previous month's statement.

If you're looking for a CLI, you should pay off all your cards' balances except leaving one card with 1% utilization.

You don't necessarily have to leave the 1% on the card you're seeking a CLI on.

And to touch again on your original question about PIF, you can use your card again once the payment posts and if there's available credit.

I'm not sure if Cap1 has an over-the-limit fee.

Re: Swipe vs USAGE - Daily PIF

Anonymous — Sat, 25 Jun 2016 15:52:30 GMT

So i wanted to layout the take aways from this post so far.

A. Even though the credit limit is 300 i am able to pay in a single day up to that limit and then pay it off as soon as it posts.

B. I think i am seeing from folks posts that I make a large payment early on (Early Pay) and then just use the card as normal and the payments will be taken as the purchases HIT.

C. I collect CB from all purchases not just up to the CL of the card

D. Cap 1 like to see heavy usage during the month at least anecdotaly . (not at the time of posting to statment)

E. Leave a 1% balance on Card while paying all the ohters to 0 so that it shows on the statment and reports to CR utilization

If i am missing something or have interpreted something incorrectly please let me know so that others can use this at a later time at least for a basic refrence with my credit profile at the time as well as the things that stand as currently true for the QS1 for someone of my CR level.

Kind Regards.

Re: Swipe vs USAGE - Daily PIF

SouthJamaica — Sat, 25 Jun 2016 16:12:14 GMT

@Anonymous wrote:
So here is the question.
I have a QS1 with a measily 300 limit.
It has 1.5% CB which is nice enough for a beginner unsecure card.
My quesiton is can i make a charge of say 150 and next day pay it of and after it is paid off the following day again make another 150 card purchase etc. up to a few days before the report date of the card.
Then come time to report just leave a small 10% or < balance to report.

A would i get my cashe back on all the purchases spent and B am i safe doing this as long as i pay daily on the card.

I currently have 2 secure cards a 53rd and PNC.
Neither graduate in my experience and neither will offer me a an unsecure based on SP.

so my only choices here are run the carad game with QS1 and show i am good for spending and paying etcc, and then at 62 days do the CLI request and then wait for the 5-6month CLI auto and just wait till my CR gets a little better with some of the baddies falling off .

Is there a best reccomendation plan for using the others ? 10% no % rotate which ones get some percent etc... ?

Thaks for the tips .
You folks are pretty awesom in these parts

Yes that's the best way to use all of the cards.

Just make sure that you have available balance for purchase you are making,

since even your instant payments don't always translate immediately to credit available.

Re: Swipe vs USAGE - Daily PIF

SouthJamaica — Sat, 25 Jun 2016 16:14:18 GMT

@Anonymous wrote:
@core wrote:
@Anonymous wrote:
Most card lenders won't let you pay your balance off early.
Lenders do not have any control over when you make your payments when you push the payment from your bank.

In OP's case I'd just push a $1k payment to Cap One and use the card normally so I didn't have to pay it every couple days. Note that with Capital One it won't increase your available credit... some lenders it does work. Last time I tried it with Cap One was almost a year ago, though.
I was going to mention this as well. Just push a payement, then spend as usuall.

Yes except that Capital One will frequently send you a refund if you have a credit balance on the statement cut.