topic Re: When should I pay my AMEX bill? in Credit Cards

When should I pay my AMEX bill?

Anonymous — Fri, 24 Sep 2010 00:33:57 GMT

...and I am looking for more of a response than "before the due date"

Here is my situation: I am a student and began building my credit under a year ago. I have two bank issued credit cards which I currently only use to keep them active (always report 0% util). Both of these cards have limits under $1,000.

I recently was approved for an AMEX Zync, and this is the first full month I have had it. I have charged around $4,000, which is higher than my typical spending. I am wondering if I can somehow leverage this amount of spending to help convince the issuers of my bank cards to up my limits to something more reasonable.

I normally PIF the day after the statement cuts. Is there any difference between paying immediately or waiting untill a few days before the payment due date in terms of what is reported to the credit bureaus? (I have heard of the 'high balance' portion of the report, but I am not sure how it applies to charge cards, or me getting higher credit limits based on my spending in the future).

Thanks for your help!

Re: When should I pay my AMEX bill?

Anonymous — Fri, 24 Sep 2010 01:08:58 GMT

My statement just cut on the 20th and I always make sure I PIF before the statement cuts, this way it reports as a zero balance.

With AMEX it will show your balance if you pay on the due date, since this card has no credit limit.

Re: When should I pay my AMEX bill?

Creditaddict — Fri, 24 Sep 2010 01:18:34 GMT

@Anonymous wrote:
My statement just cut on the 20th and I always make sure I PIF before the statement cuts, this way it reports as a zero balance.
With AMEX it will show your balance if you pay on the due date, since this card has no credit limit.

why wouldn't you want your amex to report a balance?

and for original question it does not matter rather you pay 1 day after statement or wait until due date to pay. and after that balance reports your other creditors would be able to see that

Re: When should I pay my AMEX bill?

Anonymous — Fri, 24 Sep 2010 01:45:27 GMT

Thanks CA. So if I understand you correct once the statement cuts the high balance will be reported to the credit bureau regardless of when I pay it off?

Re: When should I pay my AMEX bill?

UpNUp — Fri, 24 Sep 2010 02:02:49 GMT

August was the most I spent on my Green Card. I paid the balance one day after the statement cut to report my highest balance which, on my reports, it appears as though I'm maxed out even though I PIF.

This month my statement cut on the 17th. I PIF on the 15th. When Amex reports to CB's I will show a balance of $0 which will look good because I'm nowhere my limit. I will continue to PIF before the statement cuts.

Re: When should I pay my AMEX bill?

Creditaddict — Fri, 24 Sep 2010 02:05:53 GMT

but amex charge cards are not calculated in your util so it does not hurt you... TU is the only one that sometimes gets this wrong.

Re: When should I pay my AMEX bill?

Anonymous — Fri, 24 Sep 2010 02:11:29 GMT

@Anonymous wrote:
...and I am looking for more of a response than "before the due date"

Here is my situation: I am a student and began building my credit under a year ago. I have two bank issued credit cards which I currently only use to keep them active (always report 0% util). Both of these cards have limits under $1,000.

I recently was approved for an AMEX Zync, and this is the first full month I have had it. I have charged around $4,000, which is higher than my typical spending. I am wondering if I can somehow leverage this amount of spending to help convince the issuers of my bank cards to up my limits to something more reasonable.

I normally PIF the day after the statement cuts. Is there any difference between paying immediately or waiting untill a few days before the payment due date in terms of what is reported to the credit bureaus? (I have heard of the 'high balance' portion of the report, but I am not sure how it applies to charge cards, or me getting higher credit limits based on my spending in the future).

Thanks for your help!

Ive been looking into the Zync card. One big reason is there is a large purchase i will be making in about 9 months of about $3000 and i want the extended warranty on it from using the card. If you dont mind me asking what is your income if they let you charge $4000 in the first month.

Re: When should I pay my AMEX bill?

UpNUp — Fri, 24 Sep 2010 02:33:19 GMT

@Creditaddict wrote:
but amex charge cards are not calculated in your util so it does not hurt you... TU is the only one that sometimes gets this wrong.

But it still looks better with a zero balance along with a high balance, in my opinion.

Re: When should I pay my AMEX bill?

Creditaddict — Fri, 24 Sep 2010 02:35:57 GMT

no because if you have a balance of 5k showing on a charge card, other creditors know you have to pay that in full... it looks like you can handle a lot of credit

Re: When should I pay my AMEX bill?

Anonymous — Fri, 24 Sep 2010 02:39:56 GMT

UpNUp, Thank you for sharing your experiences. To be honest I am relieved I can pay the balance right after the statement cuts and still have the high balance report (I hate being in debt).

Re: When should I pay my AMEX bill?

UpNUp — Fri, 24 Sep 2010 02:50:57 GMT

@Creditaddict wrote:
no because if you have a balance of 5k showing on a charge card, other creditors know you have to pay that in full... it looks like you can handle a lot of credit

I guess we're looking at it from two different angles. On the one hand, I agree. On the other, I think, upon manual review, it would look better showing a high balance with $zero oweing.

Now that I "thought" I had it all figured out, you have me confused all over again! LOL

Re: When should I pay my AMEX bill?

Anonymous — Fri, 24 Sep 2010 02:53:51 GMT

@UpNUp wrote:
@Creditaddict wrote:
no because if you have a balance of 5k showing on a charge card, other creditors know you have to pay that in full... it looks like you can handle a lot of credit
I guess we're looking at it from two different angles. On the one hand, I agree. On the other, I think, upon manual review, it would look better showing a high balance with $zero oweing.

Now that I "thought" I had it all figured out, you have me confused all over again! LOL

Haha, if it makes you feel any better I am planning on reporting a zero balance next month

Re: When should I pay my AMEX bill?

Creditaddict — Fri, 24 Sep 2010 02:55:15 GMT

@UpNUp wrote:
@Creditaddict wrote:
no because if you have a balance of 5k showing on a charge card, other creditors know you have to pay that in full... it looks like you can handle a lot of credit
I guess we're looking at it from two different angles. On the one hand, I agree. On the other, I think, upon manual review, it would look better showing a high balance with $zero oweing.

Now that I "thought" I had it all figured out, you have me confused all over again! LOL

hopefully someone else with chime in too... because on second review thinking about it, it's not in your util but on a manual review, could they possibly be like your income is say 10k and your monthly expenses are 7k, so your doing good you have 3k left each month but then all of a sudden they see your amex with over 5k on it, now they say that's a shortage of 2k.... I have never had anyone mention my amex charge when talking about my credit, but it's a thought now that we both are thinking about it. lol

Re: When should I pay my AMEX bill?

UpNUp — Fri, 24 Sep 2010 03:15:20 GMT

@Creditaddict wrote:

@UpNUp wrote:
@Creditaddict wrote:
no because if you have a balance of 5k showing on a charge card, other creditors know you have to pay that in full... it looks like you can handle a lot of credit
I guess we're looking at it from two different angles. On the one hand, I agree. On the other, I think, upon manual review, it would look better showing a high balance with $zero oweing.

Now that I "thought" I had it all figured out, you have me confused all over again! LOL
hopefully someone else with chime in too... because on second review thinking about it, it's not in your util but on a manual review, could they possibly be like your income is say 10k and your monthly expenses are 7k, so your doing good you have 3k left each month but then all of a sudden they see your amex with over 5k on it, now they say that's a shortage of 2k.... I have never had anyone mention my amex charge when talking about my credit, but it's a thought now that we both are thinking about it. lol

I understand your point about it not counting in utilities. Regardless, If I were to apply for a loan and chances are, it would be manually reviewed, it would look better to the underwriter if he/she saw a bunch of 0's on my reports instead of a bunch balances, even though I PIF all. With the exception a Charge card, the underwriter wouldn't know if I'm paying in full or just making minimum payments.

Re: When should I pay my AMEX bill?

ArisGreek — Fri, 24 Sep 2010 14:15:07 GMT

Hey, I'm new here so this is my first post.

From what I've been told by AMEX, they actually pull data 5 days before your statement is generated and that is what is reported to the bureau, not your statement balance. Because my statement balance is never what is reported to the bureau on AMEX. So for example, my statements are always posted on14th or 15th of the month so the 9th or 10th is when I'd want to have something showing zero or have it show up less which 9 out of 10 times has been reported to the credit.

Now...I have a Citi American Airlines Advantage that has a $3,000 revolving line, BUT it doesn't show up as revolving on the bureau since it has a "no pre-set spending" feature, as well -- it's confusing. So it shows up as a charge card just like my AMEX Zync. I also have my AMEX Zync card which is a charge card. Even though I can pay month-to-month with my Citi AA, it shows a balance of $512 but no credit line since they report it as a charge card. I also have a AMEX Starwood Preferred Guest (SPG) and a Home Depot (HD) card that combined total $5,000 revolving line but have a $600 balance at the moment cumulatively.

If I look at my recent Equifax report, my total credit line is the total credit line of AMEX SPG and HD ONLY since they are my only revolving accounts. The Citi AA card and AMEX Zync card show that I have a balance, but are NOT calculated in my "balance" column on Equifax. Does this make sense? So, when I look at my credit score, my total utilization reflects my REVOLVING lines only...so my current debt ration on Equifax is 12% because of $600 (Total balance of AMEX SPG and Home Depot) / $5,000 (Total Credit line on AMEX SPG/HD). While my Citi AA and Zync show a balance, they are not calculated in my debt ration because they are CHARGE cards and are omitted from the formula, even though they show a balance.

As far as paying the AMEX bill, a good rule of thumb is to pay it when you can before due date. AMEX actually likes when you pay it well before since they always say "wow, you pay very early all the time." Which the guest services people have said to me on numerous occasions. It shows you are even more responsible.

Sorry if I babbled on

-Mike J

Re: When should I pay my AMEX bill?

UpNUp — Fri, 24 Sep 2010 15:08:39 GMT

@ArisGreek wrote:
Hey, I'm new here so this is my first post.

From what I've been told by AMEX, they actually pull data 5 days before your statement is generated and that is what is reported to the bureau, not your statement balance. Because my statement balance is never what is reported to the bureau on AMEX. So for example, my statements are always posted on14th or 15th of the month so the 9th or 10th is when I'd want to have something showing zero or have it show up less which 9 out of 10 times has been reported to the credit.

Now...I have a Citi American Airlines Advantage that has a $3,000 revolving line, BUT it doesn't show up as revolving on the bureau since it has a "no pre-set spending" feature, as well -- it's confusing. So it shows up as a charge card just like my AMEX Zync. I also have my AMEX Zync card which is a charge card. Even though I can pay month-to-month with my Citi AA, it shows a balance of $512 but no credit line since they report it as a charge card. I also have a AMEX Starwood Preferred Guest (SPG) and a Home Depot (HD) card that combined total $5,000 revolving line but have a $600 balance at the moment cumulatively.

If I look at my recent Equifax report, my total credit line is the total credit line of AMEX SPG and HD ONLY since they are my only revolving accounts. The Citi AA card and AMEX Zync card show that I have a balance, but are NOT calculated in my "balance" column on Equifax. Does this make sense? So, when I look at my credit score, my total utilization reflects my REVOLVING lines only...so my current debt ration on Equifax is 12% because of $600 (Total balance of AMEX SPG and Home Depot) / $5,000 (Total Credit line on AMEX SPG/HD). While my Citi AA and Zync show a balance, they are not calculated in my debt ration because they are CHARGE cards and are omitted from the formula, even though they show a balance.

As far as paying the AMEX bill, a good rule of thumb is to pay it when you can before due date. AMEX actually likes when you pay it well before since they always say "wow, you pay very early all the time." Which the guest services people have said to me on numerous occasions. It shows you are even more responsible.

Sorry if I babbled on

-Mike J

On my Green Card, my statement balance is always reported.

Re: When should I pay my AMEX bill?

ArisGreek — Fri, 24 Sep 2010 15:11:44 GMT

I wonder if it is different then depending on the card. My statement balance (except once out of the 3 years I've almost had the AMEX SPG) has never been my credit report balance.

I wonder if there really is no system.