CC PIF Approach?

[YoungMoney06]

I've recently gotten back into the routine of rebuilding my credit, and have since acquired a few major credit cards with rewards on them. I've been wanting to use these cards to run my monthly bills through, and of course any other charge that I can typically payoff in full each month.

I've heard multiple scenarios of how you should PIF each month... including reading somewhere on MyFico that said paying off a charge immediately after it posts is frowned upon by CC companies.

My question- should one pay the balance once the charge posts, or wait until before the closing date? I've been allowing charges to post to my account and then paying them off within a week following the posted charge.

[Taurus22]

I typically pay on my cards 2x per month. I have all of my cards closing dates arranged to post between the 1st-5th of the month. So, I'll use my cards until around the 20th of the month, then pay my balances down. Then when my statements post, they post a lower UTI% and I pay them off usually between the 5th-10th.

Paying after each spend has posted, would be very cumbersome and too micro-managed. Twice per month for me is manageable.

[GatorGuy]

Use the CC, charge what you can afford and then pay the statement balance before the due date. This is how CCs are designed to be used. 

If you will be applying for new credit and need a few extra points, pay off the balance on all cards except one before the reporting date. 

[longtimelurker]

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@GatorGuy wrote:

Use the CC, charge what you can afford and then pay the statement balance before the due date. This is how CCs are designed to be used. 

If you will be applying for new credit and need a few extra points, pay off the balance on all cards except one before the reporting date. 

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Yes, this is what normal customers do, and so doing that avoids standing out, which may or may not be desireable.   After all, few of us read electricity/water/gas meters every few days and send in payments multiple times a month, or pay cellphone bills more often than needed.   For most people, credit cards bills are no different.

But, some people have other desires/requirements, and want to pay off every charge as it goes because they don't like debt.   ("Hey, what about those mounting electricitiy charges, going to let that bill all build up!")  And of course, micromanaging your credit score calls for different behavior.  

[Jojo567]

I'm scared to pay weekly as it may be frowned upon. Instead, I opened a second checking account with a online bank, so at the beginning of the day I add up my charges from the previous day and send that from my main account to my second account just for credit cards. This helps me budget how much money I'm spending and ensures I always have enough to cover my credit card payments.  I don't pay until the statement cuts.

[FalconSteve]

I always PIF before statement close (minus $1) to maximize my credit score

[longtimelurker]

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@FalconSteve wrote:

I always PIF before statement close (minus $1) to maximize my credit score

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This trades off score against using the float period and so has an opportunity cost.  IMO, not worth doing every month, only when you really need the score.

[Yasselife]

That's what I try to do, leave one or two accounts post balances; keeps me more in control over my cards; I rather loose a lender than ruin my credit by having a late payment. I use Mint for micromanagement, and stare at each of my accounts for couple of minutes while my autistic brain processes colors, shapes, symbols and 0s, once that's done I'm all set.