I Have a Credit Card Confession

[grower1]

I feel like I can only discuss this here, as friends or DH would call me 1st world problems.

So this afternoon I was talking on the phone to my mom, she expressed some major concerns with her current bed/bedroom setup and I agreed that she needed new furnishings. I promtly set out online to find her a new bedroom set, mattress, box sping, pillows, comforter set, delivery with set up etc. She lives in another state, so I had to send her many photos until she decided on everything.

This whole time I was thinking about which card I would charge it to, which card would give me the most time to pay it off before the next statement cut (thus keeping my utilization low) and which card I could harvest the most points with. I was all strategy. 

Everything was going according to plan, we picked out all of the items she wanted. I decided to myself that I would pay it off in 3rds, 3 big payments and be done with it by early in the new year 2019. However when the pending charges showed up on my account about 30 minutes later, I paid the whole balance in full, sigh.  

I don't have the bravery to let my credit...actually be a credit. I have to pay off everything the moment that I see it. To make matters worse, I do AZEO because I do see a slight point benefit from it, but even carrying a $5-$20 amount makes me feel uneasy. Does anyone one else feel this way? I'm addcited to paying bills and can't rest if anything is unpaid. I'm suffering from some sort of my fico illness

[Anonymous]

That's not super uncommon in this space I think, it speaks to the obsessive compulsive nature we have about our credit and finances lol. If you must pay off everything, of course you must only spend what you have in your checking account - only spend what you can afford to pay off.

In such cases, maybe look into some kind of 0% interest option. If you can finagle valuable rewards with it that's nice, but the main goal is to pay no interest of course, as this far outweighs rewards if it becomes a pattern. If you find it difficult to allow yourself to carry debt even at 0% interest with an effective plan in action to pay it off before any interest is due, then you can start to distinguish your reaction to paying interest from your reaction to letting debt roll over: you have the opposite problem of the common consumer it sounds like, where you try to pay off your debt too fast. You must rationalize that, in some cases, paying a small amount of interest for a billing cycle or two may be your most financially sound option in achieving whatever you're trying to achieve (like buying a new bedroom set)...of course keep in mind that's a slippery slope, but that notion screams in the face of people that have OCD about paying off everything. You could also put off buying the bedroom set, but that kinda stuff seems to always have long term 0% financing.

[Anonymous]

I'm the same way.
Okay, so maybe it's overkill, but shouldn't you do too much rather than too little to maintain good financial health? I don't think of AZEO as a score boost at this point so much as treating credit as something you can pay off as you use.
I feel like those who don't pay any attention to their accounts will eventually get blindsided. They are more likely imo to accidently miss a payment, etc. If I keep tight control over my credit cards, I catch mistakes be before they become a problem.
I think it's great that you would do this for your Mom and a plus that you didn't let it interrupt the good habits that you practice.
I work say keep up the great work and stop worrying.

[CreditInspired]

Wow OP, quite impressive, I say.

I think you’re just fine, nope, more than just fine.

You remind me of the good old days—from my parents era—when they didn’t buy anything unless the money was already stashed away in a tin coffee can (Maxwell), under the mattress, or even in my mom’s bra.

Honestly, if more Americans behaved like you, many wouldn’t be 1 or 2 paychecks away from being homeless.

And if this is your “1st World problem,” so be it. At least you can put a big spend on your card and pay it off immediately, and you’re still earning rewards because you didn’t use a debit card.

Yep, I imagine there are many who would either be jealous or would love to be in your shoes.

We all have our own little idiosyncrasies. Mine is to only apply for 0% APR cards for large purchases (12-mo minimum). So if my purchase is $5K and I have 18 months, I pay $295/mo for 17 months. For me it’s silly, but I call it “beat the clock” and I actually get a kick out of this little scenario. I also get a kick out of never paying interest. Then I wash and repeat. I apply for another long-term 0% interest card.

Two months ago, I tried something different instead of applying for another card. I needed to make another large purchase. So, first I called Discover and asked for a 12-Mo, 0% offer which was granted and then I hit the luv button and got a $3K CLI.

So OP, I understand where you’re coming from and applaud your behaviors that’s unique to you.

[bizarrocreditworld]

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@grower1 wrote:

I feel like I can only discuss this here, as friends or DH would call me 1st world problems.

So this afternoon I was talking on the phone to my mom, she expressed some major concerns with her current bed/bedroom setup and I agreed that she needed new furnishings. I promtly set out online to find her a new bedroom set, mattress, box sping, pillows, comforter set, delivery with set up etc. She lives in another state, so I had to send her many photos until she decided on everything.

This whole time I was thinking about which card I would charge it to, which card would give me the most time to pay it off before the next statement cut (thus keeping my utilization low) and which card I could harvest the most points with. I was all strategy. 

Everything was going according to plan, we picked out all of the items she wanted. I decided to myself that I would pay it off in 3rds, 3 big payments and be done with it by early in the new year 2019. However when the pending charges showed up on my account about 30 minutes later, I paid the whole balance in full, sigh.  

I don't have the bravery to let my credit...actually be a credit. I have to pay off everything the moment that I see it. To make matters worse, I do AZEO because I do see a slight point benefit from it, but even carrying a $5-$20 amount makes me feel uneasy. Does anyone one else feel this way? I'm addcited to paying bills and can't rest if anything is unpaid. I'm suffering from some sort of my fico illness

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You're practicing what I think is an excellent habit to have. I hate balances and I hate interest, so I pay everything off (plus or minus a few dollars) before the statement cuts on each of my cards. It's part of the "don't spend it if you can't afford it" mentality that a lot of us have, which comes from how we were taught to handle money (or from our previous experiences with credit).

You're in a good position to be able to pay off the bills ASAP. If you can continue to do it, then keep doing it. If you find yourself in a position where you need to leave a few dollars on a couple of cards, don't sweat it. Also, make sure you're setting aside money in the bank in case you need it for an emergency. If you can pay the bills and save some money, then you're better off than a lot of people in the world.

[AverageJoesCredit]

Ive trained my mind to think this way on my second journey into credit. I may not have the money to buy everything and pif the same dsy it posts but my mindset is there. Having 0% promos and such can help but even then i know its something owed. Great job. Its nice knowing something you baught is paid for

[UpperNwGuy]

If I don't have cash on hand, I don't make the purchase.  Once I make the purchase, I wait until the statement cuts before paying it off.  I never carry a balance into the second statement, so no interest is ever charged.

[Anonymous]

I'm the same way.  I hate, hate, HATE debt.  Even long term debt like a mortgage or car loan.  Even to the point where I took CLDs on all my cards so I can't run up a balance I can't pay in full.

It sure beats the alternative.  Keep up the good work.  I feel so much freer when I know I don't owe anyone anything.

[Kree]

[Disclaimer: This is not finacial advice.  This particular post serves primarily as a thought exercise in percentages and maximized earnings, and as such does not cover all possible outcomes or variables that need to be considered. Investing with "debt" can be dangerous and is generally considered foolhearty. Never invest money if expenses cannot be immediately covered by petty cash or insurance savings.]

As a fellow minmaxer I understand the joy of maximizing rewards, while minimizing interest. And at the surface it would appear paying in full is the best option.

However, lets look at things a little deeper. A good benchmark for investments is 7% return on average. A good balance transfer offer is 0% apr for 18 months with 3% transfer fee.

1000 dollars charged, then transfered, over 18 months would cost you 30 dollars.

That same 1000 dollars invested over 18 months should earn you 110 dollars.

So by paying in full immediately, you could be losing 80 dollar per 1000 dollars spent.

EDIT: added in disclaimer.

EDIT: corrected some formating.

[Anonymous]

Nothing wrong with that.

I used to do the same (except on 0% cards.)  Now I actuallly float a whole months spend and just have auto PIF on all my cards near the due date.  I log in once a month to see what I will owe and track that in a spreadsheet.  I know exactly how much money I have outgoing every month and so can pre-plan my savings.  I save all that isn't spent.  My focus now is not to pay it now, but to lower my daily spend so I have more  to go into savings.  I also don't need to monitor my accounts all the time.  If I lose my job or something drastic I will need to drain a month of spend from my savings to pay them all off, but for now I earn interest on their money.