Paying a CC "too fast" ?

[Anonymous]

Thanks guys.

By positive balance, are you referring to a credit balance (i.e. Showing -$5.00 for example as balance) ?

[core]

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@bada_bing wrote:

In my experience issuers don't care if you pay anytime after charges post. Unless you need

One thing issuers do not like, and I have gotten nasty-grams about several times, is paying too

early and having a positive balance on your account. Issuers have some legal contraints over

holding money rather than debt and they absolutely do not like positive balances on credit card

accounts. 

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That may be true with Chase, I do not know because I don't remember overpaying them by a sizeable amount.  But I wouldn't say "issuers" in general and there do not appear to be any legal constraints in the short term at least.  Capital One had $10k of mine and the CSR was friendly with me and said that next time I can just wait 2 statements instead of calling in and a check would be sent automatically.  Citi I overpaid considerably more than that.  They actually wanted to keep my money for a while!  I had to nag them quite a few times before they sent the check.

Which company did you get the nasty-gram from, and what precisely did it say?

[CreditCuriosity]

I personally on all my CC's and all my lenders pay my CC whenever I see something post or whenever I login and see stuff posted, that is just me.

Don't overthink it.. Do what ever you feel comfortable with, most of the stuff you hear has other reasons behind it, take it at face value as if you pay alot that certainly alone wouldn't result in AA.. Way overthinking of it.. Just pay when you feel like just not late.

[Anonymous]

I hope not. My barclay gets paid multiple times per week.. and i mean lots of times Only because my limit is $500 and its my main card because it gets the best money back compared to my QS 1.5% which is crap unless you buy something over $200+ it seems. 

[Anonymous]

Considering I pay my Sallie Mae on average about 20 times a month I bet you have no issues.  I never have in all my time of owning the card.  

[bada_bing]

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@core wrote:

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@bada_bing wrote:

In my experience issuers don't care if you pay anytime after charges post. Unless you need

One thing issuers do not like, and I have gotten nasty-grams about several times, is paying too

early and having a positive balance on your account. Issuers have some legal contraints over

holding money rather than debt and they absolutely do not like positive balances on credit card

accounts. 

---

That may be true with Chase, I do not know because I don't remember overpaying them by a sizeable amount.  But I wouldn't say "issuers" in general and there do not appear to be any legal constraints in the short term at least.  Capital One had $10k of mine and the CSR was friendly with me and said that next time I can just wait 2 statements instead of calling in and a check would be sent automatically.  Citi I overpaid considerably more than that.  They actually wanted to keep my money for a while!  I had to nag them quite a few times before they sent the check.

Which company did you get the nasty-gram from, and what precisely did it say?

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BoA was the issuer I received several boiler plate messages from about maintaining a positive

balance. It has been several years so I don't have a copy handy, but I remember it cited a banking

reg # that prevented them from holding balances over a longer period. BoA is the only issuer I deal

with that allows the ability to substantially overpay a credit card on their website. The other issuers I have

accounts with either will not accept more than the amount due on their web page or limit the overage

to rounding up to the nearest $100. From that, I infer that overpaying isn't popular with any of them. In

order to generate a positive balance with any of rest of them you have to push a payment, they do not

facilitate it on their payment page. I have had BoA and Chase send unsolicted checks to return positive

balances left at statement cut. 

I used to run tighter balances on my checking and tended to manually overpay credit cards sometimes.

With the recent lack of any interest return negating an advantage in getting short term money working, I just let

money sit in checking and let autopay work. I haven't paid any cards up to a substantial positive balance

in probably 5 years. 

[Anonymous]

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@elim wrote:

Most times I see people commenting on to many payments in a billing cycle.  I would let it ride and make a simple, large payment.  Don't want to look to excited, lol.

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interesting.  Then I am going to be in big trouble. Often times I make payments the same day, or next day.  My credit picture seems to keep improving too.  But something in the back of my head has always been saying be careful...kinda like taking candy from a baby I guess?

I mean with my utilization under 5%, does it really matter when I pay?  Amex especially I have carried a balance on my ED since I opened it in may..even my delta and PRG they get paid very quickly.

I always wondered if it showed me as being paranoid? Or more responsible? Or a point abuser? But most folks have said relax, they are getting their swipes so thats all that matters.  So what is the consensus here?

[Anonymous]

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@OmarGB9 wrote:
No, just being cautious with them lol. Since I'm just starting out with them.

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I had a Fraud Alert put on my account when I made three payments within a 72 hour period with Amex. They wouldn't let me make another payment until after the statement cut a couple of weeks later.

[core]

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@bada_bing wrote:

BoA was the issuer I received several boiler plate messages from about maintaining a positive

balance. It has been several years so I don't have a copy handy, but I remember it cited a banking

reg # that prevented them from holding balances over a longer period. BoA is the only issuer I deal

with that allows the ability to substantially overpay a credit card on their website.

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Wow so you were doing this from their own web site?  Yikes.  Honestly I didn't even know BofA allowed you to do that.  When you say "substantially" I'm assuming a couple k at least.  I can't say I'll take advantage of that since pushing payments is so much simpler, but I'm going to look into that.   I can certainly see why they frown upon you using their web site for such things because they are essentially floating you the cash in the form of releasing credit line before the ACH clears.  If I were them I'd get grumpy too.

Jonfi-  I don't mess with Amex.  I'm not surprised you got scolded by them.  3 payments in a month makes me nervous enough with them.  I suppose it depends which Amex you have, and what you're doing with it.

[OmarGB9]

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@Anonymous wrote:

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@OmarGB9 wrote:
No, just being cautious with them lol. Since I'm just starting out with them.

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I had a Fraud Alert put on my account when I made three payments within a 72 hour period with Amex. They wouldn't let me make another payment until after the statement cut a couple of weeks later.

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I rest my case. Lol. Was that a new account?