topic Re: Obsessive About CC Payments? in Credit Cards

Obsessive About CC Payments?

mAndrew1980 — Tue, 03 Apr 2012 14:35:22 GMT

Hey guys,

So I'm pretty obsessive about paying my cc's. I used to have horrible credit so I'm a little anal about how I go about paying. Usually I'll make multiple payments to a single credit card in a month (like once a week). Is there any down-side to doing this?

For example, I just opened a Chase United card and I'm using it for everything. At the end of the this week, I'll probably have spent $300-$400 on it and I'll just pay it off. Next week, I'll do the same. I just don't like the thought of waiting a full month

I did this with my Barclays card as well. Does anybody else do this?

Re: Obsessive About CC Payments?

RockinRay — Tue, 03 Apr 2012 14:38:40 GMT

I do not see any thing wrong with this. I do the same thing.

Each Sunday morning, I sit down and pay the previous weeks purchases. It has become habit for me.

Re: Obsessive About CC Payments?

Open123 — Tue, 03 Apr 2012 14:40:58 GMT

No, I don't see any downside, unless it's a brand new account.

I'd wait a few months before making 10 + payments per month. Frequent payments and prepayments for new accounts are often money laundering and fraud triggers. With no prior relationship and brand new account, frequent small payments and prepayments can be considered outlier behavior.

However, with a history, you could pay as many times as you'd like, and I'm sure it'll be fine.

Re: Obsessive About CC Payments?

Anonymous — Tue, 03 Apr 2012 14:42:01 GMT

Just remember, Chase is a little picky about trying to pay within a window of 3 days apart. You can push the payment through, but once a week is fine.

I think the only one that snickers at multiple payment is AMEX, from what I've read.

Re: Obsessive About CC Payments?

Anonymous — Tue, 03 Apr 2012 14:43:17 GMT

I used to do that with my capital one card. Only because with a 500 CL I didnt have a choice but pay it multiple times.

My Discover and United card I have had for a few months now and have only paid once the statement was generated. This month however I am a little worried Chase and Discover will get spooked. I planned on taking advantage of the 0% for 15 months on my discover more and get new tires and brakes for my car since both were much needed. However a week after that my car starts leaking oil and then another whammy. I have been putting all my monthly regular expenses on my United card since I plan on paying that in full, while carrying a balance on the discover card.

Needless to say with about 11,000 in credit limits total I am at abut 30% util. Hope that doesn't spook my creditors especially when the accounts are 2 months old.

Re: Obsessive About CC Payments?

CS800 — Tue, 03 Apr 2012 14:45:45 GMT

Speaking of obsessive, I pay my card the minute the charge posts..I know its too much but thats how i roll.

Never EVER be late

Ok i need therapy

Re: Obsessive About CC Payments?

Open123 — Tue, 03 Apr 2012 14:49:08 GMT

@Anonymous wrote:
I used to do that with my capital one card. Only because with a 500 CL I didnt have a choice but pay it multiple times.

My Discover and United card I have had for a few months now and have only paid once the statement was generated. This month however I am a little worried Chase and Discover will get spooked. I planned on taking advantage of the 0% for 15 months on my discover more and get new tires and brakes for my car since both were much needed. However a week after that my car starts leaking oil and then another whammy. I have been putting all my monthly regular expenses on my United card since I plan on paying that in full, while carrying a balance on the discover card.

Needless to say with about 11,000 in credit limits total I am at abut 30% util. Hope that doesn't spook my creditors especially when the accounts are 2 months old.

If nothing alarming is going on in your reports, I think 30 - 40% utility while not great for your Fico numerical scores, will be fine with your creditors. I don't think they become concerned until you reach about 60% utility and barely paying the minimum while applying for new credit.

Re: Obsessive About CC Payments?

RockinRay — Tue, 03 Apr 2012 14:49:28 GMT

@Anonymous wrote:

I think the only one that snickers at multiple payment is AMEX, from what I've read.

Amex has never had an issue with me and I do pay them weekly...

Re: Obsessive About CC Payments?

webhopper — Tue, 03 Apr 2012 14:50:51 GMT

I pay multiple times, never had issues so far. I like paying bills on saturday mornings, its become habit, and I've been doing it this way for 6 yrs... Guess what? Never had a late payment in six yrs go figure! Others have mentioned amex snickering, but you know what? You're the customer and their product is to make your life easier, if they don't like that then that's fine, ill let someone else make my life easier!

Re: Obsessive About CC Payments?

Open123 — Tue, 03 Apr 2012 14:53:03 GMT

@Anonymous wrote:
I think the only one that snickers at multiple payment is AMEX, from what I've read.

From what I've seen, this only relates to the charge card.

I'm not sure how they feel regarding multiple payments on the credit card. However, I do know one of the many speculated upon triggers of an FR would be frequent and prepayments.

Frequent prepayments is a well known money laundering strategy whereby a person prepays a credit card from another bank, then requests a credit or check refunded. This is repeated with another CC, and eventually it becomes almost impossible to ascertain the original source of the funds.

Re: Obsessive About CC Payments?

Open123 — Tue, 03 Apr 2012 14:54:18 GMT

@webhopper wrote:
I pay multiple times, never had issues so far. I like paying bills on saturday mornings, its become habit, and I've been doing it this way for 6 yrs... Guess what? Never had a late payment in six yrs go figure! Others have mentioned amex snickering, but you know what? You're the customer and their product is to make your life easier, if they don't like that then that's fine, ill let someone else make my life easier!

Couldn't agree more.

While I'm more than willing to compromise and be reasonable, ultimately I am the customer. If I prefer to pay frequently, and they don't like it, well then I'll go to someone else who doesn't mind my preferrence.

Re: Obsessive About CC Payments?

Anonymous — Tue, 03 Apr 2012 14:55:05 GMT

@Open123 wrote:

I'm not sure how they feel regarding multiple payments on the credit card. However, I do know one of the many speculated upon triggers of an FR would be frequent and prepayments.

This is the great urban myth that I frequently have read as well.

I've only had AMEX for about two months and each time have only paid once a month, so based on experience my original comment is not.

Re: Obsessive About CC Payments?

mAndrew1980 — Tue, 03 Apr 2012 15:10:22 GMT

Thanks for the replies. Didn't think paying once a week would be a big deal. But the topic of money laundering is scary -- considering all I'm trying to do is make sure I never have a late payment!

Re: Obsessive About CC Payments?

Anonymous — Tue, 03 Apr 2012 15:16:13 GMT

@RockinRay wrote:
I do not see any thing wrong with this. I do the same thing.

Each Sunday morning, I sit down and pay the previous weeks purchases. It has become habit for me.

I have the same habit.

Re: Obsessive About CC Payments?

Anonymous — Tue, 03 Apr 2012 15:25:27 GMT

IMHO, I think this is really depends on what do you spend on your cc.

If your spending is majorly on regular purchases etc. that should be fine.

If your spending has a lot of APs, BTs, gift cards or USmint and you spend 80% of income in 3 month, multiple payments a month may create an alarm, especially for Amex...

Re: Obsessive About CC Payments?

pizzadude — Tue, 03 Apr 2012 18:25:29 GMT

@Anonymous wrote:
@Open123 wrote:

I'm not sure how they feel regarding multiple payments on the credit card. However, I do know one of the many speculated upon triggers of an FR would be frequent and prepayments.

This is the great urban myth that I frequently have read as well.
I've only had AMEX for about two months and each time have only paid once a month, so based on experience my original comment is not.

I have a ZYNC and I pay it multiple times per week. Never have had any feedback from AMEX regarding this, so I am assuming that it isn't really an issue.

Of course my ZYNC has the $200 hard limit, so if I didn't pay early and often the card would be relatively useless....

Re: Obsessive About CC Payments?

Anonymous — Tue, 03 Apr 2012 21:23:08 GMT

@Anonymous wrote:
@Open123 wrote:

I'm not sure how they feel regarding multiple payments on the credit card. However, I do know one of the many speculated upon triggers of an FR would be frequent and prepayments.

This is the great urban myth that I frequently have read as well.
I've only had AMEX for about two months and each time have only paid once a month, so based on experience my original comment is not.

It is not a myth. Depends on the bank.

For my wifes CITI Sears MC, they only allow 5 paymens a month, You can not charge more than your limit in a month, enen if you pay it down. For the first 2 payments in a month the credit is made available next day. For any other, they automatically hold the credit for 10 days. They claim all these rules are too discourage money laundering.

Re: Obsessive About CC Payments?

LS2982 — Tue, 03 Apr 2012 21:25:11 GMT

@mAndrew1980 wrote:
Hey guys,

So I'm pretty obsessive about paying my cc's. I used to have horrible credit so I'm a little anal about how I go about paying. Usually I'll make multiple payments to a single credit card in a month (like once a week). Is there any down-side to doing this?
For example, I just opened a Chase United card and I'm using it for everything. At the end of the this week, I'll probably have spent $300-$400 on it and I'll just pay it off. Next week, I'll do the same. I just don't like the thought of waiting a full month

I did this with my Barclays card as well. Does anybody else do this?

Yes. I make multiple payments on Cap1 and Barclays. I will make 1 payment a month on AMEX and Discover.

Re: Obsessive About CC Payments?

Anonymous — Tue, 03 Apr 2012 21:27:46 GMT

My obsession is to make a payment immediately after the statement closes.

I make at least minimum payment right away and sometimes more if amount is small or I need the available credit. I generally PIF before the due date on any amount that would incur interest.

Priorities.

Never be late with a payment.

Rarely pay interest, unless I plan to.

Make use of the float.

Re: Obsessive About CC Payments?

Anonymous — Tue, 03 Apr 2012 21:53:54 GMT

I do become obsessed only when the statement period closes. I always pay in full, in fact only paid interest once in 20 years. I don't make multiple payments during the month.