Is there any downside to paying my Amex every week?

[NRB525]

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@SDMarik wrote:

Title pretty much says it.

I'm sort of anal about paying my Amex relatively quickly once the charges post.

I have to pay it in full every month regardless, however, when I'm sitting around sometimes I'll just open the app and pay the current balance, sometimes twice a week.

I know there probably isn't any benefit in doing this, but could this have any negative effect? 

Thanks in advance!

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Your AMEX is a Platinum? The charge cards use spend and balance history to determine your internal limit for how much they will allow you to charge.  I don't know whether "monthly spend even if paid daily" is a pattern that helps raise your internal limit. Paying once per month prior to statement payment due date definitely is a factor in that internal limit. 

This may turn up if you have a large spend you want to put on the card. Such a charge might involve asking them whether the charge will be accepted. The pattern of frequent payments shouldn't be a problem getting the charge approved, but a regular large statement balance paid in full means another large charge is just part of your regular pattern. 

On my AMEX charge cards, I let the charges accumulate and use the autopay "statement balance" to let them pull the funds. I do frequently post my card charges to my Money app, and over the course of the year that gives me a view to what my spend patterns are. Categories such as groceries, travel, computer purchases, cellphone, all get me a better view to my actual budget.  I'd rather have a detailed tracking of my spend patterns than frequently pay cards to zero.  Yes, cards can provide a "spend analysis" report, but they are each different.  

[Anonymous]

AMEX loves cycling. I charge and pay every week and AMEX apparently loves it. 

[blossom_rebuilding]

I can't imagine why AmEx would have a problem with multiple payments in a month; it just shows that you aggresively care about not carrying a balance or missing a due date. Hard to see a downside to that; it just comes down to personal preference. I prefer to pay certain sets of my bills at set times during the month, but if you don't mind paying immediately after transactions and there's no risk of it backfiring, I say live and let live

[Anonymous]

If Amex didn't like getting paid so often then they wouldn't created the ability to "Pay It" in the app. So I don't really see a downside to doing it.

My only thought for logging in and PIF so often would be that you're way too bored. lol  

Personally that's way too hands on, repetitive and energy exhaustive, so I prefer only making one payment to each issuer per month. 

[okurosetta]

I think it comes down to what works for you. Some people will say to only pay balances when they are due, that paying early is essentially giving an interest-free loan to a bank. When looked at purely from a maximizing everything perspective, there's definitely some truth to this - though how much interest one would actually eke out by delaying would not be substantial, for most people.

But what works for you >>> anything else, period.

What has worked for me, in terms of reducing/eliminating debt and increasing my credit score, has included paying early. I have found I keep myself more accountable when I readily know where my balances are at, including what is on 0% promos and what isn't. I keep a spreadsheet that shows this information, including a column that takes my total savings minus my credit card debt. This is a number I can quickly look at to stay accountable and I try to improve it every time I make payments/update my sheet. Paying early helps improve this number, so I often do.

For American Express in particular, they sure haven't seemed to mind. I once hit a limit with Wells Fargo - I had sent a bunch of small payments from various accounts as a test when I first opened the card, haven't had issue since - but I've paid AmEx more often than that so I'm guessing they have no issues. If they have no issues + what you're doing is working for you, I think you have your answer.

[Anonymous]

I do the same thing myself. Mostly with large charges because it bothers me to see that large balance sitting there. I have read that Amex appreciates customers making multiple payments within the billing cycle. I have seen no adverse effects from doing so. If it makes you feel good keep it up!

[Anonymous]

To my mind it comes down to who are you trying to please? The credit rating agencies or AmEx?  If at the end of each cycle they see your balances are not out of line, or are very small because you're paying along the way, AmEx would be happy I'd think. They will report whatever balance exists whenever they report, and so long as there aren't wide swings in your day to day balance then the reporting agencies wont notice.

Most importantly, please yourself;  If paying along makes you comfortable, then do so.  I do the same but only when there are large purchases, just to keep things under control.  I don't think it's ever hurt my score.

[Anonymous]

This is me   #1 and 2.  

And ditto @grower1 

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@dragontears wrote:

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@SDMarik wrote:

Title pretty much says it.

I'm sort of anal about paying my Amex relatively quickly once the charges post.

I have to pay it in full every month regardless, however, when I'm sitting around sometimes I'll just open the app and pay the current balance, sometimes twice a week.

I know there probably isn't any benefit in doing this, but could this have any negative effect? 

Thanks in advance!

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There is only 2 reasons I can think of to pay that often. 

1. To help control your spending 

2. Your credit limit is too low for your spend

If neither apply you can just pay once (or twice if micromanaging your profile) per billing cycle. 

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