topic Re: Explain this to me-use simple words LOL in General Credit Topics

Explain this to me-use simple words LOL

JMMD — Wed, 31 May 2017 20:46:22 GMT

ok, so I want to use a CC to build credit. I want to use it for one expense per month and pay it off in full. As an example, say I set up my electric bill to auto-pay usiing the card. Then I set up auto-pay on the card so it just automatically gets paid in full each month. How can I do this without having to pay interest on the card?

Thanks!

Re: Explain this to me-use simple words LOL

Anonymous — Wed, 31 May 2017 21:28:49 GMT

As long as the bal is paid off completely by the due date no interest will be charged. You can also pay it off a few days before the statement date if you don't want a bal reported.

Re: Explain this to me-use simple words LOL

JMMD — Wed, 31 May 2017 21:37:05 GMT

@Anonymous wrote:
As long as the bal is paid off completely by the due date no interest will be charged. You can also pay it off a few days before the statement date if you don't want a bal reported.

Thank you!

Re: Explain this to me-use simple words LOL

SouthJamaica — Wed, 31 May 2017 22:22:36 GMT

@JMMD wrote:
ok, so I want to use a CC to build credit. I want to use it for one expense per month and pay it off in full. As an example, say I set up my electric bill to auto-pay usiing the card. Then I set up auto-pay on the card so it just automatically gets paid in full each month. How can I do this without having to pay interest on the card?

Thanks!

Just the way you said.

But it depends on the credit card and on the utility as to how to set up the mechanics of it all. You might or might not be able to get the utility to hit up your credit card every month. You need to check it out.

Also bear in mind that utilities often charge a service charge for credit card payments.

Re: Explain this to me-use simple words LOL

Anonymous — Thu, 01 Jun 2017 01:11:36 GMT

I agree with the above. You may want to consider other bills that you have that likely don't charge you a fee when paid via CC such as your phone bill, car insurance, gym bill, etc.

Out of curiosity, why are you looking to only pay just 1 bill every month on your CC? If you're going to PIF, you may as well send more of your bills (like the ones I mentioned above) through the CC. It's essentially the same thing as paying with your debit card or check, just that your pushing the dollars through the card first and then paying off the card instead of the bill directly. I'm not sure what CC you have, but if it's a rewards card this simply means more rewards. If it's not a rewards card, pushing more transactions/dollars through it can be a positive thing and prompt the creditor to extend you a CLI at some point which indirectly can further aid in building your credit (and scores).

Re: Explain this to me-use simple words LOL

JMMD — Thu, 01 Jun 2017 18:11:20 GMT

@SouthJamaica wrote:
@JMMD wrote:
ok, so I want to use a CC to build credit. I want to use it for one expense per month and pay it off in full. As an example, say I set up my electric bill to auto-pay usiing the card. Then I set up auto-pay on the card so it just automatically gets paid in full each month. How can I do this without having to pay interest on the card?

Thanks!
Just the way you said.

But it depends on the credit card and on the utility as to how to set up the mechanics of it all. You might or might not be able to get the utility to hit up your credit card every month. You need to check it out.

Also bear in mind that utilities often charge a service charge for credit card payments.

Thanks for the info. I don't need it to be a utility, I just chose that for my example. I will see what reoccuring bills we have that I can use.

Re: Explain this to me-use simple words LOL

JMMD — Thu, 01 Jun 2017 18:14:14 GMT

@Anonymous wrote:
I agree with the above. You may want to consider other bills that you have that likely don't charge you a fee when paid via CC such as your phone bill, car insurance, gym bill, etc.

Out of curiosity, why are you looking to only pay just 1 bill every month on your CC? If you're going to PIF, you may as well send more of your bills (like the ones I mentioned above) through the CC. It's essentially the same thing as paying with your debit card or check, just that your pushing the dollars through the card first and then paying off the card instead of the bill directly. I'm not sure what CC you have, but if it's a rewards card this simply means more rewards. If it's not a rewards card, pushing more transactions/dollars through it can be a positive thing and prompt the creditor to extend you a CLI at some point which indirectly can further aid in building your credit (and scores).

I want just one bill so the card doesn't get too high. We had a lot of CC debt and I don't ever want to get back in that position but definitely want to keep building credit. We have 3 capitol one cards, we each a WM card, each an Amazon card, care credit, few store cards and a visa through our bank. All the cards are at zero except the care credit which we are paying off within the next month or two.

Re: Explain this to me-use simple words LOL

rmduhon — Fri, 02 Jun 2017 14:37:50 GMT

I have Netflix set to hubby's Cabela's card to keep it active (mostly used during hunting season) and Pandora One to his Best Buy Visa. Our MyFico accounts are each on a different card and so is my Ancestry account. And I pay those shortly after the charge posts so that they don't report balances (we have other cards that do). Just giving you some ideas.

Re: Explain this to me-use simple words LOL

Anonymous — Fri, 02 Jun 2017 17:05:56 GMT

@JMMD wrote:
@Anonymous wrote:
As long as the bal is paid off completely by the due date no interest will be charged. You can also pay it off a few days before the statement date if you don't want a bal reported.

Thank you!

But if they dont report SOMETHING then it defeats the purpose of what you are trying to do. Let it report, but pay it off by due date.

Re: Explain this to me-use simple words LOL

rmduhon — Fri, 02 Jun 2017 17:08:32 GMT

It won't matter if it doesn't report a balance because you'll still get another month of positive history. Assuming at least 1 card reports a balance.

Re: Explain this to me-use simple words LOL

SouthJamaica — Fri, 02 Jun 2017 21:02:36 GMT

@JMMD wrote:
@SouthJamaica wrote:
@JMMD wrote:
ok, so I want to use a CC to build credit. I want to use it for one expense per month and pay it off in full. As an example, say I set up my electric bill to auto-pay usiing the card. Then I set up auto-pay on the card so it just automatically gets paid in full each month. How can I do this without having to pay interest on the card?

Thanks!
Just the way you said.

But it depends on the credit card and on the utility as to how to set up the mechanics of it all. You might or might not be able to get the utility to hit up your credit card every month. You need to check it out.

Also bear in mind that utilities often charge a service charge for credit card payments.
Thanks for the info. I don't need it to be a utility, I just chose that for my example. I will see what reoccuring bills we have that I can use.

Oh then that makes it easy. You could do it on netflix, or a gym, or some monthly internet thing, or a storage room, etc

Re: Explain this to me-use simple words LOL

Anonymous — Sat, 03 Jun 2017 03:55:37 GMT

@JMMD wrote:
I want just one bill so the card doesn't get too high. We had a lot of CC debt and I don't ever want to get back in that position but definitely want to keep building credit. We have 3 capitol one cards, we each a WM card, each an Amazon card, care credit, few store cards and a visa through our bank. All the cards are at zero except the care credit which we are paying off within the next month or two.

The card won't get too high if you pay off your purchases immediately. How do you pay for your non-CC purchases? Debit card? Cash? Instead, you simply use your CC and then use the cash or money from your checking account to pay off that CC charge. Yes this adds probably 30 seconds to the process, but it allows you to show more CC usage while not increasing your credit card debt.

Re: Explain this to me-use simple words LOL

JMMD — Sat, 03 Jun 2017 18:28:28 GMT

@rmduhon wrote:
I have Netflix set to hubby's Cabela's card to keep it active (mostly used during hunting season) and Pandora One to his Best Buy Visa. Our MyFico accounts are each on a different card and so is my Ancestry account. And I pay those shortly after the charge posts so that they don't report balances (we have other cards that do). Just giving you some ideas.

Thanks! I appreciate the ideas!

Re: Explain this to me-use simple words LOL

JMMD — Sat, 03 Jun 2017 18:30:05 GMT

@SouthJamaica wrote:
@JMMD wrote:
@SouthJamaica wrote:
@JMMD wrote:
ok, so I want to use a CC to build credit. I want to use it for one expense per month and pay it off in full. As an example, say I set up my electric bill to auto-pay usiing the card. Then I set up auto-pay on the card so it just automatically gets paid in full each month. How can I do this without having to pay interest on the card?

Thanks!
Just the way you said.

But it depends on the credit card and on the utility as to how to set up the mechanics of it all. You might or might not be able to get the utility to hit up your credit card every month. You need to check it out.

Also bear in mind that utilities often charge a service charge for credit card payments.
Thanks for the info. I don't need it to be a utility, I just chose that for my example. I will see what reoccuring bills we have that I can use.
Oh then that makes it easy. You could do it on netflix, or a gym, or some monthly internet thing, or a storage room, etc

Thanks! appreciate the help!

Re: Explain this to me-use simple words LOL

JMMD — Sat, 03 Jun 2017 18:31:28 GMT

@Anonymous wrote:
@JMMD wrote:
I want just one bill so the card doesn't get too high. We had a lot of CC debt and I don't ever want to get back in that position but definitely want to keep building credit. We have 3 capitol one cards, we each a WM card, each an Amazon card, care credit, few store cards and a visa through our bank. All the cards are at zero except the care credit which we are paying off within the next month or two.
The card won't get too high if you pay off your purchases immediately. How do you pay for your non-CC purchases? Debit card? Cash? Instead, you simply use your CC and then use the cash or money from your checking account to pay off that CC charge. Yes this adds probably 30 seconds to the process, but it allows you to show more CC usage while not increasing your credit card debt.

We pay everything by debit card now so that would make sense to use the CC, then pay if off.

Re: Explain this to me-use simple words LOL

rmduhon — Sat, 03 Jun 2017 19:06:38 GMT

Especially if it's a rewards card. Might as well make some money for paying bills.

Re: Explain this to me-use simple words LOL

Anonymous — Sun, 04 Jun 2017 00:33:41 GMT

@JMMD wrote:

We pay everything by debit card now so that would make sense to use the CC, then pay if off.

Exactly.

Debit cards and cash are basically the same thing to me and I use neither unless I absolutely have to.

I used a debit card (cash) only one time in 2016. I was at a local county fair which did not take CCs... so I had to use my debit card at an ATM on site to withdraw $40. It killed me to do so, but I did it... for the sake of my 4 year old at the time