Confused about Credit Cycling

[Credit12Fico]

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@EAJuggalo wrote:

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@Anonymous wrote:

I have a delta skymiles platinum $1700 CL... I have $3500 in spending since 2/17/21...first statement 3/19/21...have made 6 payments and is PIF as of 3/17/21 waiting for statement. All payments made through same Cu acct. But this is my/wife's daily driver. Completed SUB on 3/10/21 ...70k for 2k..

I am waiting for 3 full statements for CLI.( 1ST time amex ever)..will see if i get love or get stuck in the friends zone..

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I thought it was AMEX that specifically had it in their T&Cs that you were only allowed one payment in the first statement period.  Is it Chase?

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It's definetly not Chase speaking from experience

[CreditAggie]

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@Credit12Fico wrote:

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@EAJuggalo wrote:

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@Anonymous wrote:

I have a delta skymiles platinum $1700 CL... I have $3500 in spending since 2/17/21...first statement 3/19/21...have made 6 payments and is PIF as of 3/17/21 waiting for statement. All payments made through same Cu acct. But this is my/wife's daily driver. Completed SUB on 3/10/21 ...70k for 2k..

I am waiting for 3 full statements for CLI.( 1ST time amex ever)..will see if i get love or get stuck in the friends zone..

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I thought it was AMEX that specifically had it in their T&Cs that you were only allowed one payment in the first statement period.  Is it Chase?

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It's definetly not Chase speaking from experience

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I'm in my first billing cycle on my CFF and have already made two payments. 

[jstratford]

In the same boat I spend more on all my cards monthly and payoff as I get paid. They all have toy limits tho maybe that y discover never gives me love. I'm new to the Amex world, I use the card and since it's only 1800sl I plan on paying it every time it get to 1k. 

[jstratford]

I'm not sure about Amex but I've noticed with some of my other cards when I make big payments or multiple a month they might hold a payment for a week and I have had to call and three way my bank to get funds released just to keep my utilization down. When I only had two cards.

[Horseshoez]

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@jstratford wrote:

I'm not sure about Amex but I've noticed with some of my other cards when I make big payments or multiple a month they might hold a payment for a week and I have had to call and three way my bank to get funds released just to keep my utilization down. When I only had two cards.

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Last year I only had a Secured CapitalOne card with a $1,000 limit and tried the same thing and got the same result, my payments put on hold for up to 12 days.  I closed the card after only 6-weeks in disgust.

[Ghost_host999]

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@jstratford wrote:

I'm not sure about Amex but I've noticed with some of my other cards when I make big payments or multiple a month they might hold a payment for a week and I have had to call and three way my bank to get funds released just to keep my utilization down. When I only had two cards.

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So far Amex has immidiately updated my available credit right after I pay it from the app or on the website. This goes for the $175 payment as well as the $2000 payment. I always wait for one payment to clear my bank before making another on though. 

[Anonymous]

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@EAJuggalo wrote:

I thought it was AMEX that specifically had it in their T&Cs that you were only allowed one payment in the first statement period.  Is it Chase?

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I've read that they only allow one payment through their website during the first statement period.  If you needed to make more than one, you can call, or push a payment to them from your bank account.

Back on topic, I don't cycle my cards, even though my limits are small, but only because my spending is small too.  If I have a big purchase coming up, I may pay some of it ahead (with a push from my bank account) to avoid running too close to a limit, but I haven't had to do this in a long time, since I don't spend much.

[FalconSteve]

I did it with our Citi DC card since our limit was too low and I never received any adverse events from it, but it isn't ideal.

[4sallypat]

Wow, that's a new issue: AML

No wonder I keep hearing of users' payments being held and CL not updated when Goldman Sachs' Apple Card.

That explains a lot.

[Azza]

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@Anonymous wrote:

It depends on whether or not you're paying off the balance in full monthly or if you're carrying it.  Someone that runs their balance up all the way monthly but always pays it off in full is known as a Transactor.  You could have a $10k limit card and spend $9k/mo for example, but as long as you're paying off that $9k right away you're exhibiting Transactor behavior and presenting little risk to your lender.  This is exactly the type of customer they want because they get all of those transaction fees from the heavy use of the card, but none of the risk that you may not pay.  Someone that does not pay off their card in full monthly that continues to run their balance up after paying some of it down is known as a Revolver.  These individuals are much more risky.  If someone is a Revolver for a length of time, lenders could consider AA such as reducing their credit limit and likely would not increase their credit limit.  A Transactor on the other hand stands little chance of AA and heavy use/payment on a card often can stimulate credit line increases.

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Awesome post.

What about those that PIF and still have a balance after statement cut with pending charges, but then PIF next month while continuing to carry a new balance? Revolver or transactor?

Thanks!