Help me to understand the logic of Credit Card payment options?

[AzCreditGuy]

While I have most of my CC on autopayments for the montly due date. I have 2 AU cards that I am under that seem to not want to play nice when it comes to setting auto payments. 

1. Chase which pays off a Verzion bill and falls on the 29th and statment closes on the 26th and due date is 23rd

2. Wells Fargo pays off a Tmobile Bill and falls onthe 7th and the statement closes on the 26th and due date is the 20th 

Which leaves a $0 balance on the accounts for due date, I have tried to set auto payments to pay off the balances that is on the card on the due date to create AZEO, but these accounts refuse to make my payments since there is no balance when the statement closes. Another annoyance is the fact that the dollar amount has to be rounded up the nearest dollar, instead of the actual dollar amount? 

I would think these banks would welcome autopayments regardless of balance on due date or not and would not hinder the consumer from putting autopayments in play to not miss any payments? 

[SecretAzure]

I also would like to know what others here will advise. My best advice to you would be to change the due date on the actual bills. This is something they will permit you to do...although sometimes it can take 2 billing cycles to kick in. Make it a date early in the new credit card billing cycle.

Best I can do, let's see what the smarties here say!

[Anonymous]

Are you able to use bill pay from your checking to push payments on a certain day to the accounts? It allows you to pay without having a balance due at the time.

[K-in-Boston]

Your post is a bit confusing.  Are you saying that you are unable to set up autopay to make a payment on the current balance rather than the statement balance on the due date?  The sole purpose of autopay is to pay either the minimum or full amount that is due.  If nothing is actually due because it was charged during the current statement period, there's no way to pay it any way other than manually.

If I am understanding your question correctly, that is not something most consumers would ever want.  You are essentially paying a bill that hasn't even been generated yet a month early.

[NRB525]

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@AzCreditGuy wrote:

I would think these banks would welcome autopayments regardless of balance on due date or not and would not hinder the consumer from putting autopayments in play to not miss any payments? 

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Autopay is available, for the prior statement balance. 

AZEO is not normal behavior.

Trying to autopay the current balance is not something the bank wants to provide, because it surprises people if a larger charge is made, and the expectation is it will show up on the statement. 

Some banks allow you to schedule a future payment, using the then-current balance as the target to pay. Typically not available in Autopay.

[UpperNwGuy]

I personally don't think much of AZEO, but if you want to try it, you're going to need to pay your bills manually so you have more control than autopay will give you.  I don't use autopay for credit card payments ever, because I like the control.  I am absolutely not a "set it and forget it" type of guy.

[Azza]

haha here I am paying off everything as I buy it and letting a small amount report when statement cuts on my Discover.

Eyyyy it's work, but it works.

[NRB525]

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@Azza wrote:
haha here I am paying off everything as I buy it and letting a small amount report when statement cuts on my Discover.

Eyyyy it's work, but it works.

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It may be a system you prefer, but how many points does it get you on FICO 8? Is your gardening goal nearly a year? That's a long time to try to manage AZEO when nobody else will be looking at your credit reports. 

Some of us believe that not reporting significant balances as they occur, may cause bank computer algorithms to go berserk when a significant balance finally does appear.

Consistently reporting of balances gets the algorithms familiar with that habit.  

[AzCreditGuy]

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@NRB525 wrote:

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@Azza wrote:
haha here I am paying off everything as I buy it and letting a small amount report when statement cuts on my Discover.

Eyyyy it's work, but it works.

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It may be a system you prefer, but how many points does it get you on FICO 8? Is your gardening goal nearly a year? That's a long time to try to manage AZEO when nobody else will be looking at your credit reports. 

Some of us believe that not reporting significant balances as they occur, may cause bank computer algorithms to go berserk when a significant balance finally does appear.

Consistently reporting of balances gets the algorithms familiar with that habit.  

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Someone else posted AZEO is not normal behavior? I would say being in debt and given away money to the banks through interest is not normal behavior.

Ive been in the garden for a year+ now and the cards that are mine are on the auto payment, yes its easier since there is a balance and I set the payment amount to be paid. But I’ve set the auto pay and let it go, of course the 1st month I checked all accounts to make sure they were all paid.

I don’t see a problem with managing AZEO on the AU side as there are 3 bills each being paid on 3 cards with specific payments due. The family members doesn’t use the credit cards and know if they do, they have to realize that full payment of use on that card is due on the due date.

The algorithms you speak of are flawed and there is no way determine if your statement is true “not reporting significant balances as they occur, may cause bank computer algorithms to go berserk when a significant balance finally does appear”

The above statement makes no sense as my 30% UTI went down to 8% and the algorithms that determine where I am on the scale spit out that “Account balances too high”

At this point with my highest Fico 8 score being 772 (EX) and my other 2 at 755, Im over Fico 8 and the 3 with its outdated algorithms, very soon that 8% will go down to 1% AZEO and some other BS code will pop out or I still have to deal with Short account History.

One last thing having control of ones Financials, means having the tools to control the Finances.

1. Bank Balance sheet
2. Credit Card Balance sheet

This is how I control my CCs and why I prefer to set auto pay and just forgot about them, I only use one card that has been paid off for bigger purchases if needed and manually pay the card off on the due date.

[Anonymous]

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@AzCreditGuy wrote:

Someone else posted AZEO is not normal behavior? I would say being in debt and given away money to the banks through interest is not normal behavior.

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AZEO is not typical behavior outside the membership here.  And you don't have to AZEO or pay ahead of statement cut to avoid paying interest.

Most people use their cards and pay the bill when it is due (whether in full or partial), meaning you're paying charges made in a previous cycle, and there is a balance on the statement, which also gets reported to the bureaus.

AZEO or paying before statement cut is paying the balance before it even appears on a statement, so the balance reports 0 or a small amount you determine.  Most CC users don't normally do this.

PIF, as in paying the statement balance in full, doesn't necessarily bring the account balance to zero, since you may have made additional charges since the statement was generated.