topic Re: Paying credit card strategy in Credit Cards

Paying credit card strategy

Working-on-Credit1 — Fri, 26 Aug 2022 22:24:36 GMT

Hey Forum,

Question Does anyone know the method in which you make credit card min payment a week before due date then pay statement balance on due date? I saw something like this on another site.

Re: Paying credit card strategy

Kforce — Fri, 26 Aug 2022 22:55:31 GMT

@Working-on-Credit1 wrote:
Hey Forum,
Question Does anyone know the method in which you make credit card min payment a week before due date then pay statement balance on due date? I saw something like this on another site.

It sound like they were trying to talk about "AZEO"

All zero except one payments and when to pay your cards.

The times in the example are not good ones. (My Opinion)

Search AZEO and you will find many methods and opinions on best way to pay.

First need to decide if it is even a process you want to mess with

Re: Paying credit card strategy

calisig — Sat, 27 Aug 2022 04:57:41 GMT

@Working-on-Credit1 I don't think you are talking about AZEO. The 'hack' I think you are talking about is false and doesn't do anything better than paying your statement in full ...

Re: Paying credit card strategy

Kforce — Sat, 27 Aug 2022 15:27:24 GMT

@calisig, now you have my curiosity

Do you have a link, name, something for me to search?

Re: Paying credit card strategy

calisig — Sat, 27 Aug 2022 16:59:06 GMT

i remember seeing something like this - 'make two payments to PIF instead of one to increase score' - from so called experts marketing their 'credit fix' services on TicTok and other places ...

@Kforce

Edit: I think the OP is referring to the 15/3 myth as outlined here: https://www.nerdwallet.com/article/credit-cards/15-3-credit-card-hack-is-not-true

Re: Paying credit card strategy

CreditMarathoner — Sat, 27 Aug 2022 16:46:05 GMT

@Working-on-Credit1 wrote:
Hey Forum,
Question Does anyone know the method in which you make credit card min payment a week before due date then pay statement balance on due date? I saw something like this on another site.

I don't know offhand of any benefit of using such a technique. Paying the statement balance on/before the due date achieves the same thing. Perhaps the other site was mentioning setting autopay to pay the minimum to avoid missed/late payments and then paying the statement balance manually.

AZEO is something else entirely, where you pay all cards to report zero except one which you let report a small balance to maximize FICO scores.

Re: Paying credit card strategy

elixerin — Tue, 06 Sep 2022 14:47:40 GMT

Re: Paying credit card strategy

AlanGJP — Tue, 06 Sep 2022 16:16:14 GMT

@calisig wrote:
@Working-on-Credit1 I don't think you are talking about AZEO. The 'hack' I think you are talking about is false and doesn't do anything better than paying your statement in full ...

Yup, it's BS. Paying twice in such a short period of time accomplishes nothing - it's not a hack.

The only real 'hack' is AZEO.

Let ONE card report a small balance (1-3% of your total available credit for that card)

Pay off EVERY other card you have

This will be the best score you can get with your credit profile.

Other 'hacks' would be:

1. Getting negative items removed. (Missed payments, etc) Or waiting the 7 years for them to fall off.

2. Paying down any loans you have below 3% (Correct me if I'm wrong here on the %, but I believe it's 3% for optimal?) I forget the percentages without checking, but there are multiple percentages that bump your score, with that last 3% being the big one.

3. Letting any hard inquiries age off - Score bumps at: 3 months, 6 months, 1 year and 2 years when they finally drop.

ALSO: (THIS is the REAL hack) Pay your balance BEFORE your bill comes, don't wait for it to show up. The day your bill is created (cut) is the day they report your balance to the credit bureaus. In other words, if you get a bill for $300 and pay it in full, your payment will NOT be reported - it's too late. They sent you the bill AND reported the amount owed at the same time. Creditors report once a month when your bill is cut. They don't report again after you pay your bill. So if you have a $300 bill, pay it, and then charge $300 and your next bill comes -- the credit bureaus will show $300 for both those entire months. They will not show $0. And your score WILL NOT improve. Your bill HAS to show $0 for the bureaus to also see it, watch your report (use credit karma) and make sure it SHOWS $0. SO many people don't understand this.

Re: Paying credit card strategy

FireMedic1 — Tue, 06 Sep 2022 18:58:07 GMT

@AlanGJP wrote:
@calisig wrote:
@Working-on-Credit1 I don't think you are talking about AZEO. The 'hack' I think you are talking about is false and doesn't do anything better than paying your statement in full ...
Yup, it's BS. Paying twice in such a short period of time accomplishes nothing - it's not a hack.

The only real 'hack' is AZEO.
I wouldnt call it a hack. Many use the process before apping for credit. It maximizes your score beforehand.

Let ONE card report a small balance (1-3% of your total available credit for that card)
Pay off EVERY other card you have

This will be the best score you can get with your credit profile.

Other 'hacks' would be:
1. Getting negative items removed. (Missed payments, etc) Or waiting the 7 years for them to fall off. There have been GW success stories. After 7yrs baddies fall off. Isnt a hack.
2. Paying down any loans you have below 3% (Correct me if I'm wrong here on the %, but I believe it's 3% for optimal?) I forget the percentages without checking, but there are multiple percentages that bump your score, with that last 3% being the big one.
The biggest gain on a installment loan is once it drops below 8.99%.
3. Letting any hard inquiries age off - Score bumps at: 3 months, 6 months, 1 year and 2 years when they finally drop.
FICO doesn't count inq's once they pass 1 yr against your score. Vantage yes its used against you for the 2 yrs.

ALSO: (THIS is the REAL hack) Pay your balance BEFORE your bill comes, don't wait for it to show up. The day your bill is created (cut) is the day they report your balance to the credit bureaus. It will report $0. It was PIF. In other words, if you get a bill for $300 and pay it in full, your payment will NOT be reported - it's too late. It will reflect $300 because it wasnt PIF before statement date. They sent you the bill AND reported the amount owed at the same time. Creditors report once a month when your bill is cut.
If you PIF your balance before the statement cuts. It will report $0 no matter how many payments were made. As you mentioned AZEO. If you get a bill for $300 then it wasnt PIF before statement date. Its going to report $0 or $300. Not a hack.
They don't report again after you pay your bill. So if you have a $300 bill, pay it, and then charge $300 and your next bill comes -- the credit bureaus will show $300 for both those entire months. They will not show $0. And your score WILL NOT improve.
Incorrect. It will report $0 for the current statement. Once the $300 is charged after the statment date . It is placed on the next months statement cycle. It will report $300 if not PIF by statement date. If it is PIF. $0 balance.
Your bill HAS to show $0 for the bureaus to also see it, watch your report (use credit karma) and make sure it SHOWS $0. SO many people don't understand this. Yes it will show a $0 balance. Payment was made. Nothing really to understand.

There isnt any "hacks". We're not talking about gaining unathorized access to a computer. AZEO is a process. Which the OP never mentioned. Few things were pointed out

@Working-on-Credit1asked "Does anyone know the method in which you make credit card min payment a week before due date then pay statement balance on due date?"

@calisigplaced a great link to explain it doesnt work. Although it still has nothing to do with AZEO.

Re: Paying credit card strategy

FireMedic1 — Tue, 06 Sep 2022 17:19:35 GMT

@Working-on-Credit1 wrote:
Hey Forum,
Question Does anyone know the method in which you make credit card min payment a week before due date then pay statement balance on due date? I saw something like this on another site.

@Working-on-Credit1 Whatever is leftover that wasnt paid after statement date will reflect on the next statement cycle. @calisig placed a great link. No truth to it. Simple basic what was charged, total statement amount, how much was paid, and what carried over. It will reflect the carried over balance because it wasnt PIF. Ignore what you saw.

AZEO wasnt mentioned. Back to topic.