topic Re: paying off credit card immediately. Do you still gets points in Credit Cards

paying off credit card immediately. Do you still gets points

Darius1976 — Tue, 09 Jul 2013 06:13:50 GMT

Hello Team,

I have the Hilton Honors Credit Card. I was wondering. If I use the card to, lets say, buy grocercies...then I immediately pay off what I spent within an few hours. (ie make payment through the online pay system), do I still get the bonus Hhonor points? Thank you in advance.

Re: paying off credit card immediately. Do you still gets points

riffdex — Tue, 09 Jul 2013 06:59:28 GMT

Yes you can and should pay it off immediately.

Re: paying off credit card immediately. Do you still gets points

Darius1976 — Tue, 09 Jul 2013 07:27:55 GMT

Ok. I just wasn't sure if I would still get the points if I did.

Re: paying off credit card immediately. Do you still gets points

SSA_2013 — Tue, 09 Jul 2013 07:49:15 GMT

@riffdex wrote:
Yes you can and should pay it off immediately.

This is almost always true. However, you must also remember that some banks may or may not report activity figures if you always report a $0 balance. This is why it is best to rotate a few cards so that it generates a small enough bill and pay it off before it accumulates any interest.

Re: paying off credit card immediately. Do you still gets points

Anonymous — Tue, 09 Jul 2013 20:07:30 GMT

You should be OK in receiving the points.

However, In my opinion, it's not always a good idea to continuously have your credit cards report zero balances.

You should rotate them to report balance and pay before Interest takes effect.

I have heard after six months of zero balances FICO will no longer consider the account for purposes of scoring.

Re: paying off credit card immediately. Do you still gets points

Anonymous — Tue, 09 Jul 2013 20:40:02 GMT

Why would you think it is beneficial to payoff your credit card immediatly? that's just bad advice... Unless you are planning on apping for something in the next 30-45 days; and need the drop in utilization to help your score. It is more beneficial to let that money sit in an account that is earning interest, and pay your statement balance on the due date in order to maximize your interest earnings.

Re: paying off credit card immediately. Do you still gets points

Anonymous — Tue, 09 Jul 2013 21:02:53 GMT

@SSA_2013 wrote:
@riffdex wrote:
Yes you can and should pay it off immediately.
This is almost always true. However, you must also remember that some banks may or may not report activity figures if you always report a $0 balance. This is why it is best to rotate a few cards so that it generates a small enough bill and pay it off before it accumulates any interest.

Wow I never knew that I was always scared of having a high utilization which is why I pay it off frequently

Re: paying off credit card immediately. Do you still gets points

Darius1976 — Tue, 09 Jul 2013 21:04:03 GMT

Thanks for everyone's advice... I am applying for a mortgage in the near future (30-45 days). The loan is at the underwriter. This is why I am paying off the card early. Should I pay everything except a couple of dollars then so it will report?

Re: paying off credit card immediately. Do you still gets points

GatorGuy — Tue, 09 Jul 2013 21:05:41 GMT

@Anonymous wrote:
Why would you think it is beneficial to payoff your credit card immediatly? that's just bad advice... Unless you are planning on apping for something in the next 30-45 days; and need the drop in utilization to help your score. It is more beneficial to let that money sit in an account that is earning interest, and pay your statement balance on the due date in order to maximize your interest earnings.

This.

Re: paying off credit card immediately. Do you still gets points

SSA_2013 — Tue, 09 Jul 2013 22:00:20 GMT

@GatorGuy wrote:
@Anonymous wrote:
Why would you think it is beneficial to payoff your credit card immediatly? that's just bad advice... Unless you are planning on apping for something in the next 30-45 days; and need the drop in utilization to help your score. It is more beneficial to let that money sit in an account that is earning interest, and pay your statement balance on the due date in order to maximize your interest earnings.

This.

This is good advice too but can be hurtful in some instances. If you have all of your accounts post with high utilization it might spook some creditors month after month.

Re: paying off credit card immediately. Do you still gets points

Anonymous — Tue, 09 Jul 2013 22:02:26 GMT

@SSA_2013 wrote:
@GatorGuy wrote:
@Anonymous wrote:
Why would you think it is beneficial to payoff your credit card immediatly? that's just bad advice... Unless you are planning on apping for something in the next 30-45 days; and need the drop in utilization to help your score. It is more beneficial to let that money sit in an account that is earning interest, and pay your statement balance on the due date in order to maximize your interest earnings.

This.
This is good advice too but can be hurtful in some instances. If you have all of your accounts post with high utilization it might spook some creditors month after month.

that is why you keep your spending down to 2-3 cards and have high credit limits. I normally only use 3 cards and my monthly spending is less then 10-20% of my overall limits...... this is where having high credit limits really helps.