topic Re: Payment History Question in Credit Cards

Payment History Question

Anonymous — Thu, 12 Jul 2018 23:04:21 GMT

If I pay off my credit cards before a statement has come out, that doesn't count as an on-time payment because no payment was ever due, correct?

Re: Payment History Question

Anonymous — Thu, 12 Jul 2018 23:11:14 GMT

@Anonymous wrote:
If I pay off my credit cards before a statement has come out, that doesn't count as an on-time payment because no payment was ever due, correct?

It will when the issuer posts an update to the CB's for your balance info. Even if a payment isnt due, but you pay it will lower your balance and when that is sent to the CB's it will show as that month paid as well. when it reports that will show as an on time payment.

Re: Payment History Question

Anonymous — Fri, 13 Jul 2018 01:12:23 GMT

Like @Jago22 said, if you put charges on the card and make a payment, even before statement cut, it will be reported as an on-time payment on your reports.

Re: Payment History Question

K-in-Boston — Fri, 13 Jul 2018 01:16:30 GMT

Welcome to the forums. Just to add to the conversation, if this is a card that requires you to make X payments on time in order to get Y, you should let a balance post (even a small one) so that you DO have a minimum payment to make on time each month.

Re: Payment History Question

Gmood1 — Fri, 13 Jul 2018 04:19:23 GMT

Yeah..what this guy says 👆.
Let it post unless your utilization is high.

Re: Payment History Question

Anonymous — Fri, 13 Jul 2018 04:29:11 GMT

So I can let $1 post just so I get a bill and that would qualify towards my payment history?

Re: Payment History Question

Anonymous — Fri, 13 Jul 2018 04:49:28 GMT

@Anonymous wrote:
So I can let $1 post just so I get a bill and that would qualify towards my payment history?

Yeah, you can. as long as you dont miss a payment, your payment history will be just fine. if you leave a 1 on that one card, it would honestly depend on how many cards you have and if any of those have a balance as well. If you are going after a new card/loan, then we all recommend the AZEO (all zero except one) to maximize your scores. keeping all your cards paid and reporting 0 except one card that should be at least than 8.9% of its credit limit.

Re: Payment History Question

Gmood1 — Fri, 13 Jul 2018 04:59:48 GMT

I personally don't recommend AZEO while trying to build credit payment history.
Unless you need to squeeze every last point, it is unnecessary IMO.
In a manual review it may hamper you instead of helping. UWs want to see some REAL payment history. Not zero's month after month across your accounts. With only $1 reporting on one card.
We've had members denied credit because they didn't allow payments to report.
Some lenders won't report your payment or the balance, if you pay it too soon.

Re: Payment History Question

Anonymous — Fri, 13 Jul 2018 04:57:53 GMT

@Anonymous wrote:
So I can let $1 post just so I get a bill and that would qualify towards my payment history?

Let try this from a different angle. I dont know how you check your scores/profile, and while i'd never recommend CK for scores, the info on there for your accts is good usually.

Say you have a card that you havent used or had to make a payment on in several months. your profile will still show you have perfect payment history. 0 or $1 balance is the same as long as your not late on a payment.

Re: Payment History Question

Anonymous — Fri, 13 Jul 2018 04:59:21 GMT

@Gmood1 wrote:
I personally don't recommend AZEO while trying to build credit payment history.
Unless you need to squeeze every last point, it is unnecessary IMO.
In a manual review it may hamper you instead of helping. UWs want to see some REAL payment history. Not zero's month after month across your accounts. With only $1 reporting on one card.
We've had members denied credit because they didn't allow payments to report.

+1 agree. it's really only useful if your going after new credit. On the flip side of that you dont want to look maxed out or pay interest either.

Re: Payment History Question

Gmood1 — Fri, 13 Jul 2018 05:09:01 GMT

Agreed...Oh for sure, no reason to be maxed or pay interest.
What you don't won't OP is to look as though you are manipulating your reports. They may find that a little fishy.

They see a running total of your credit card debt. If you have $10k in credit and only a $1 has reported for the last six months. In a manual review someone's going to be scratching their head. 😂

Re: Payment History Question

Anonymous — Fri, 13 Jul 2018 05:20:57 GMT

But I want the on time payments to post without accruing the unnecessary interest. I’ve recently started putting everything on credit (to get the cash back/points) and I was paying it off (down to 0 balance) the next day. Then I realized: how could a on time payment be reported if there was never a payment due? I’m just trying to get clarification and I’m getting mixed answers here so I might just have to do a little trial and error myself.

Re: Payment History Question

Gmood1 — Fri, 13 Jul 2018 05:26:01 GMT

As long as you pay by statement due date. You won't have any interest. You have 55 days if you use the CC right after the statement cuts, before it needs to be paid not to incur any interest.
Not full balance but statement balance.
I try to use mine to my full advantage! lol
That money can sit in a high yield
savings, checking or money market account until the bill is due.

Re: Payment History Question

Anonymous — Fri, 13 Jul 2018 05:25:53 GMT

That makes more sense. So go ahead and let it post so there’s a bill due, then pay it off?

Re: Payment History Question

Gmood1 — Fri, 13 Jul 2018 05:26:59 GMT

Yes, unless you're over 29% utilization on that card. If you want to be a little picky..make it 9%.

Re: Payment History Question

Anonymous — Fri, 13 Jul 2018 05:41:21 GMT

I’ll probably just do one small purchase on each card (under 30%) and let that post.

Re: Payment History Question

Gmood1 — Fri, 13 Jul 2018 06:17:06 GMT

I don't know your situation, but if you really want to build credit history. Use your CCs like a debit card. Pay every monthly bill you have with your cards. That includes food, utilities, gas..you name it.
In two years, you'll have established solid payment history and the lenders will be offering you CCs to get your business.
Scores are one small part of the recipe. Showing the creditors you're a master at managing your credit is what matters most IMO and experience.