topic Re: Paying credit card off every week in General Credit Topics

Paying credit card off every week

Jojo567 — Tue, 27 Apr 2021 22:22:43 GMT

To help me better budget my expenses I wanted to start paying off my credit cards every week, the only problem is 0% utilization dings your score. If I pay off my cards and reports my balances at like $10-30 and the utilization for any given cards is 0% my overall utilization would be 0%. Does it still ding your credit if you have small balances? And would any lender take AA by doing this say 4x a month?

Re: Paying credit card off every week

TheFIGuy — Tue, 27 Apr 2021 22:37:36 GMT

@Jojo567 wrote:
To help me better budget my expenses I wanted to start paying off my credit cards every week, the only problem is 0% utilization dings your score. If I pay off my cards and reports my balances at like $10-30 and the utilization for any given cards is 0% my overall utilization would be 0%. Does it still ding your credit if you have small balances? And would any lender take AA by doing this say 4x a month?

Maybe something like YNAB can help, seeing it allocates the money for every transaction into a category bucket to pay the CC monthly

Re: Paying credit card off every week

SouthJamaica — Wed, 28 Apr 2021 00:38:46 GMT

@Jojo567 wrote:
To help me better budget my expenses I wanted to start paying off my credit cards every week, the only problem is 0% utilization dings your score. If I pay off my cards and reports my balances at like $10-30 and the utilization for any given cards is 0% my overall utilization would be 0%. Does it still ding your credit if you have small balances? And would any lender take AA by doing this say 4x a month?

It's fine to pay them off every week. Just make sure that at least one of them reports a small balance before you pay it off.

Re: Paying credit card off every week

Kforce — Wed, 28 Apr 2021 18:26:28 GMT

@SouthJamaica wrote:
@Jojo567 wrote:
To help me better budget my expenses I wanted to start paying off my credit cards every week, the only problem is 0% utilization dings your score. If I pay off my cards and reports my balances at like $10-30 and the utilization for any given cards is 0% my overall utilization would be 0%. Does it still ding your credit if you have small balances? And would any lender take AA by doing this say 4x a month?
It's fine to pay them off every week. Just make sure that at least one of them reports a small balance before you pay it off.

+ 100

Have seen a few lenders that have a pay limit of one payment per month for first month or two from account opening. Also have seen in the fine print some that only except 4 payments per month, however real CC customers report far more than 4 payments per month from those issuers. Have never had a problem with once a week from any issuer that I have had.

My take.

After first two months, you should be able to pay every week with out a problem.

Because each transfer has a small charge involved, I would not push the threshold and pay every other day.

I personally never had a problem with paying every week, I however do not currently pay that often, so my data points are years old.

Re: Paying credit card off every week

kb2ehj — Thu, 29 Apr 2021 02:22:41 GMT

This is how I do it, right or wrong it's been working for me since January of 2021 when I started getting serious about this credit stuff figured out and on the road to a better score.

I pay multiple times during the statement period on 5 of 6 credit cards (6th one i don't use at all) keeping the balance at $0.00. As I approach the closing statement date (I have a paper calendar that shows on what day the CC statement period will end on) I again pay off any balance that will put the card over about 5% utiliazation. I allow this balance to get reported to the CB's and then pay off the balance on those cards the day the new billing period starts and because this balance is payed before the bill due date.....i pay no interest.

Again, just the way I've been doing it.

@Kforce wrote:
@SouthJamaica wrote:
@Jojo567 wrote:
To help me better budget my expenses I wanted to start paying off my credit cards every week, the only problem is 0% utilization dings your score. If I pay off my cards and reports my balances at like $10-30 and the utilization for any given cards is 0% my overall utilization would be 0%. Does it still ding your credit if you have small balances? And would any lender take AA by doing this say 4x a month?
It's fine to pay them off every week. Just make sure that at least one of them reports a small balance before you pay it off.
+ 100
Have seen a few lenders that have a pay limit of one payment per month for first month or two from account opening. Also have seen in the fine print some that only except 4 payments per month, however real CC customers report far more than 4 payments per month from those issuers. Have never had a problem with once a week from any issuer that I have had.

My take.
After first two months, you should be able to pay every week with out a problem.
Because each transfer has a small charge involved, I would not push the threshold and pay every other day.
I personally never had a problem with paying every week, I however do not currently pay that often, so my data points are years old.

Re: Paying credit card off every week

SouthJamaica — Thu, 29 Apr 2021 14:06:12 GMT

@kb2ehj wrote:
This is how I do it, right or wrong it's been working for me since January of 2021 when I started getting serious about this credit stuff figured out and on the road to a better score.
I pay multiple times during the statement period on 5 of 6 credit cards (6th one i don't use at all) keeping the balance at $0.00. As I approach the closing statement date (I have a paper calendar that shows on what day the CC statement period will end on) I again pay off any balance that will put the card over about 5% utiliazation. I allow this balance to get reported to the CB's and then pay off the balance on those cards the day the new billing period starts and because this balance is payed before the bill due date.....i pay no interest.

Again, just the way I've been doing it.
@Kforce wrote:
@SouthJamaica wrote:
@Jojo567 wrote:
To help me better budget my expenses I wanted to start paying off my credit cards every week, the only problem is 0% utilization dings your score. If I pay off my cards and reports my balances at like $10-30 and the utilization for any given cards is 0% my overall utilization would be 0%. Does it still ding your credit if you have small balances? And would any lender take AA by doing this say 4x a month?
It's fine to pay them off every week. Just make sure that at least one of them reports a small balance before you pay it off.
+ 100
Have seen a few lenders that have a pay limit of one payment per month for first month or two from account opening. Also have seen in the fine print some that only except 4 payments per month, however real CC customers report far more than 4 payments per month from those issuers. Have never had a problem with once a week from any issuer that I have had.

My take.
After first two months, you should be able to pay every week with out a problem.
Because each transfer has a small charge involved, I would not push the threshold and pay every other day.
I personally never had a problem with paying every week, I however do not currently pay that often, so my data points are years old.

If you were to allow all but one of the cards to report a zero balance, you would probably see an increase in your mortgage scores. Having a number of cards reporting small balances works decently for FICO 8's and 9's, but is a drag on mortgage scores, which like to see zero balances.

Re: Paying credit card off every week

kb2ehj — Thu, 29 Apr 2021 19:04:04 GMT

I already have a morgage so that is a mute point for my situation.