topic Re: Is there any downside to paying my Amex every week? in Credit Cards

Is there any downside to paying my Amex every week?

SDMarik — Sun, 02 May 2021 01:06:26 GMT

Title pretty much says it.

I'm sort of anal about paying my Amex relatively quickly once the charges post.

I have to pay it in full every month regardless, however, when I'm sitting around sometimes I'll just open the app and pay the current balance, sometimes twice a week.

I know there probably isn't any benefit in doing this, but could this have any negative effect?

Thanks in advance!

Re: Is there any downside to paying my Amex every week?

dragontears — Sun, 02 May 2021 01:41:09 GMT

@SDMarik wrote:
Title pretty much says it.

I'm sort of anal about paying my Amex relatively quickly once the charges post.

I have to pay it in full every month regardless, however, when I'm sitting around sometimes I'll just open the app and pay the current balance, sometimes twice a week.

I know there probably isn't any benefit in doing this, but could this have any negative effect?

Thanks in advance!

There is only 2 reasons I can think of to pay that often.

1. To help control your spending

2. Your credit limit is too low for your spend

If neither apply you can just pay once (or twice if micromanaging your profile) per billing cycle.

Re: Is there any downside to paying my Amex every week?

SDMarik — Sun, 02 May 2021 02:34:00 GMT

@dragontears wrote:
@SDMarik wrote:
Title pretty much says it.

I'm sort of anal about paying my Amex relatively quickly once the charges post.

I have to pay it in full every month regardless, however, when I'm sitting around sometimes I'll just open the app and pay the current balance, sometimes twice a week.

I know there probably isn't any benefit in doing this, but could this have any negative effect?

Thanks in advance!
There is only 2 reasons I can think of to pay that often.
1. To help control your spending
2. Your credit limit is too low for your spend

If neither apply you can just pay once (or twice if micromanaging your profile) per billing cycle.

My spending limit seems plenty high, granted I don't know exactly what it is but I have yet to to hit it.

I know paying once a month is plenty, but I just didn't know if there was any reason not to pay as frequently as I wanted to.

Re: Is there any downside to paying my Amex every week?

grower1 — Sun, 02 May 2021 02:35:41 GMT

@SDMarik wrote:
Title pretty much says it.

I'm sort of anal about paying my Amex relatively quickly once the charges post.

I have to pay it in full every month regardless, however, when I'm sitting around sometimes I'll just open the app and pay the current balance, sometimes twice a week.

I know there probably isn't any benefit in doing this, but could this have any negative effect?

Thanks in advance!

I have the same habit. I pay everything the moment it posts, no matter how many times per month (with the exception of my $10 AZEO balance). I feel more comfortable with $0s.

Re: Is there any downside to paying my Amex every week?

Kforce — Sun, 02 May 2021 02:36:56 GMT

@dragontears wrote:
@SDMarik wrote:
Title pretty much says it.
I'm sort of anal about paying my Amex relatively quickly once the charges post.
I have to pay it in full every month regardless, however, when I'm sitting around sometimes I'll just open the app and pay the current balance, sometimes twice a week.

I know there probably isn't any benefit in doing this, but could this have any negative effect?

Thanks in advance!
There is only 2 reasons I can think of to pay that often.
1. To help control your spending
2. Your credit limit is too low for your spend

If neither apply you can just pay once (or twice if micromanaging your profile) per billing cycle.

There are other reasons.

I just don't like owing an issuer money.

Paying it off lets me sleep better..

The float is stressful, I can't wait and pay at the last minute..

I pay a little different, anal just the same, when any balance >= $1,000.

"Monk would be proud of the even number"

On a few of my cards that means two or three times a month.

For the sock drawer, cards I pay the day after my small charge post.

The downside might be not showing enough utilization for CL increases

Which are not needed when one pays all the time.

A couple of my cards reached $50,000 CL and never reported a balance over a couple hundred

I also have lowered and locked all my cards at $20,000.

I pay often. have low limits for my spend/income, and sleep well.

Pay as often as you like.

Re: Is there any downside to paying my Amex every week?

Anonymous — Sun, 02 May 2021 03:27:20 GMT

Amex likes getting paid. I think that's probably all you need to consider in this.

Re: Is there any downside to paying my Amex every week?

ladybug2016 — Sun, 02 May 2021 04:23:35 GMT

I'm thinking they like frequent payments or wouldn't offer the Pay It feature for pretty much every single transaction that posts, no matter how small.

Re: Is there any downside to paying my Amex every week?

digitek — Sun, 02 May 2021 05:04:54 GMT

@Anonymous wrote:
Amex likes getting paid. I think that's probably all you need to consider in this.

This is true of Amex for sure, but I think this kind of applies to all banks and just humankind in general. No one in the entire world in the history of time has ever been mad to be paid money they are owed =D

I also agree with K-Force about all he said. I pay every 2 weeks in full on every card and it has a lot of positive benefits. Most notably is that you don't ever have to worry about due dates. Banks seem to dig it, good for the credit score, never pay interest.

Only realy down side I have ever noticed is that you almost never receive auto-CLI, which K-Force actually mentioned. I also agree 100% that there is almost no practical reason to have total revolving lines that are multiples of your annual income. I understand that some people like to do it for fun and games, but truth is that banks definitely feel better to see lower total avaible credit lines in relation to income than larger.

Annual income is not a part of FICO scoring at all, but it is a big factor in how a bank relates with you and is asked directly when applying for new credit at a new financial institution. For some institutions, total assets are also a factor and how much you are you going to park with them.

Re: Is there any downside to paying my Amex every week?

Horseshoez — Sun, 02 May 2021 05:57:34 GMT

@digitek wrote:
@Anonymous wrote:
Amex likes getting paid. I think that's probably all you need to consider in this.
This is true of Amex for sure, but I think this kind of applies to all banks and just humankind in general. No one in the entire world in the history of time has ever been mad to be paid money they are owed =D

I would argue the contrary. Last year after my Chapter 13 was discharged, I was approved for a CapitalOne secured credit card; I secured it with the maximum allowable security deposit of $849 which yielded a credit limit of $1,000. While I was well aware of the fact that was well below my typical monthly spend, I reasoned I could pay it every week or two and it would all work out. Bzzzt! I'm sorry, that is incorrect. CapitalOne would accept my first payment per billing period, however, each subsequent payment in the cycle would trigger an AML (Anti Money Laundering) protocol and they'd put a hold on my payments for 12 days before releasing the money to my account.

After several calls to customer service I just got fed up and closed the card only six weeks after I got it. After comparing notes with other folks, it appears had I opted to used CapitalOne's payment facility and "pulled" the money from my checking account, all would have been well, however, I don't like that payment model, I'd rather initiate all of my credit card payments directly from my checking account via their online bill pay facility.

Long story short, for CapitalOne at least, there are instances where they do indeed get "mad" at being paid money which is owed to them. Go figure.

Re: Is there any downside to paying my Amex every week?

Shooting-For-800 — Sun, 02 May 2021 14:19:54 GMT

@Horseshoez wrote:
@digitek wrote:
@Anonymous wrote:
Amex likes getting paid. I think that's probably all you need to consider in this.
This is true of Amex for sure, but I think this kind of applies to all banks and just humankind in general. No one in the entire world in the history of time has ever been mad to be paid money they are owed =D

I would argue the contrary. Last year after my Chapter 13 was discharged, I was approved for a CapitalOne secured credit card; I secured it with the maximum allowable security deposit of $849 which yielded a credit limit of $1,000. While I was well aware of the fact that was well below my typical monthly spend, I reasoned I could pay it every week or two and it would all work out. Bzzzt! I'm sorry, that is incorrect. CapitalOne would accept my first payment per billing period, however, each subsequent payment in the cycle would trigger an AML (Anti Money Laundering) protocol and they'd put a hold on my payments for 12 days before releasing the money to my account.

After several calls to customer service I just got fed up and closed the card only six weeks after I got it. After comparing notes with other folks, it appears had I opted to used CapitalOne's payment facility and "pulled" the money from my checking account, all would have been well, however, I don't like that payment model, I'd rather initiate all of my credit card payments directly from my checking account via their online bill pay facility.

Long story short, for CapitalOne at least, there are instances where they do indeed get "mad" at being paid money which is owed to them. Go figure.

I got the exact opposite effect.

I paid my cap one cards weekly and used them a ton.

I got a single cli on one for $8k. The card started at $3k.

Then I got several $10k cards and a $30k card from them.

I currentl have $67k avail from Cap One.

YMMV

Re: Is there any downside to paying my Amex every week?

FinStar — Sun, 02 May 2021 14:32:19 GMT

Back on topic, please. The OP's question --"Is there any downside to paying my Amex every week?". The thread isn't about Capital One or whether it gets "mad" or not.

Thank you.

Re: Is there any downside to paying my Amex every week?

wingennis — Sun, 02 May 2021 15:28:56 GMT

@SDMarik wrote:
@dragontears wrote:
@SDMarik wrote:
Title pretty much says it.

I'm sort of anal about paying my Amex relatively quickly once the charges post.

I have to pay it in full every month regardless, however, when I'm sitting around sometimes I'll just open the app and pay the current balance, sometimes twice a week.

I know there probably isn't any benefit in doing this, but could this have any negative effect?

Thanks in advance!
There is only 2 reasons I can think of to pay that often.
1. To help control your spending
2. Your credit limit is too low for your spend

If neither apply you can just pay once (or twice if micromanaging your profile) per billing cycle.
My spending limit seems plenty high, granted I don't know exactly what it is but I have yet to to hit it.

I know paying once a month is plenty, but I just didn't know if there was any reason not to pay as frequently as I wanted to.

If it makes you feel better to pay more often, you should do that. I do it myself and have not had any adverese affect from Amex.

Re: Is there any downside to paying my Amex every week?

Rogue46 — Sun, 02 May 2021 16:32:28 GMT

I pay mine off pretty much as soon as the charge hits sometimes daily. You can also prepay with Amex which I do on occasion if I have bigger charges. I hate seeing a balance on any of my cards!

Re: Is there any downside to paying my Amex every week?

j615 — Sun, 02 May 2021 16:39:54 GMT

I've been paying my Amex accounts between 1 and 5 times a month since 2013. Never had a problem.

Re: Is there any downside to paying my Amex every week?

Anonymous — Sun, 02 May 2021 17:04:08 GMT

@Kforce wrote:
@dragontears wrote:
@SDMarik wrote:
Title pretty much says it.
I'm sort of anal about paying my Amex relatively quickly once the charges post.
I have to pay it in full every month regardless, however, when I'm sitting around sometimes I'll just open the app and pay the current balance, sometimes twice a week.

I know there probably isn't any benefit in doing this, but could this have any negative effect?

Thanks in advance!
There is only 2 reasons I can think of to pay that often.
1. To help control your spending
2. Your credit limit is too low for your spend

If neither apply you can just pay once (or twice if micromanaging your profile) per billing cycle.
There are other reasons.
I just don't like owing an issuer money.
Paying it off lets me sleep better..
The float is stressful, I can't wait and pay at the last minute..
I pay a little different, anal just the same, when any balance >= $1,000.
"Monk would be proud of the even number"
On a few of my cards that means two or three times a month.
For the sock drawer, cards I pay the day after my small charge post.

The downside might be not showing enough utilization for CL increases
Which are not needed when one pays all the time.
A couple of my cards reached $50,000 CL and never reported a balance over a couple hundred
I also have lowered and locked all my cards at $20,000.
I pay often. have low limits for my spend/income, and sleep well.
Pay as often as you like.

x100. I know it defeats the purpose of having a credit cards but I like 0 balances. I like that Amex let's me pay at 0 balance with a pending transaction. There might be other lenders that I have that allows that. If I can't do it, I'll push through with my bank. I have never taken full advantage of 0% apr on balance transfer or purchases until now. I'm doing it now because the card is the only card with a balance and I don't want my credit score to be penalized with all 0 balances. I'm so tempted to pay it off.

Re: Is there any downside to paying my Amex every week?

Anonymous — Sun, 02 May 2021 18:41:53 GMT

@Anonymous wrote:
x100. I know it defeats the purpose of having a credit cards but I like 0 balances. I like that Amex let's me pay at 0 balance with a pending transaction. There might be other lenders that I have that allows that. If I can't do it, I'll push through with my bank. I have never taken full advantage of 0% apr on balance transfer or purchases until now. I'm doing it now because the card is the only card with a balance and I don't want my credit score to be penalized with all 0 balances. I'm so tempted to pay it off.

I think it always worth doing a calculation as to the cost of this (and many may decide it is worth it for the safe feeling). With today's deposit interest rate, the numbers probably aren't huge, but it's pretty easy to get say 0.4%. If every month you pay a $1000 balance 15 days before you need to, you are giving up approx $20 a year. If you are doing this on several cards (and/or the balances are higher) it starts negating rewards.

Re: Is there any downside to paying my Amex every week?

BlackOpzFX — Sun, 02 May 2021 22:31:51 GMT

LOL!! My statement closes tomorrow and I made multiple payments in the same day to cover some Ytube Superchats I bought in real-time. I'm petty and made 3 payments that day. A sizable one then $7 and $5 and immediately made payments with minutes of making the charges. I usually end up paying multiple times per month and its never been an issue. I do it more with Amex because you can pay 'pending' charges and they instantly credit your CL when you pay soooo... I end up paying them a LOT.

Re: Is there any downside to paying my Amex every week?

Gmood1 — Sun, 02 May 2021 22:54:39 GMT

Do what works for you and Amex. Unfortunately not all lenders like to be paid multiple times a month..go figure. I can think of a few lenders you may run into an account being shut down. Just something to be aware of.

Re: Is there any downside to paying my Amex every week?

MrCreditInternational — Mon, 03 May 2021 09:18:55 GMT

I've been doing this with all my cards (especially Amex) since 2018 and no problems at all. Amex now will actually restore your credit limit as soon as you pay. Look at my signature to see my current cards that are still open

I would highly recommend doing this since it helps you stay on top of your spending and prevent having to pay interest at all. I do it so I know how much I can still spend instead of being shocked at the end of the month after I've spent more than I could afford. It also keeps my utilization very low.

Re: Is there any downside to paying my Amex every week?

Anonymous — Mon, 03 May 2021 18:09:27 GMT

Not a problem with Amex, love you for it, get to float your money as they have not even paid merchant yet.