cancel
Showing results for 
Search instead for 
Did you mean: 

Question about best cycle to pay AMEX ED

lonelyisland
Frequent Contributor

Question about best cycle to pay AMEX ED

Hi, 

 

I am using the AMEX ED in place of my debit card now for everyday stuff. Is it better to:

 

1. Let the statement be cut with the monthly spend (anywhere from $1500-$2000 I would imagine), and then pay it off.

2. Pay it all off before the statement cuts, then let it report as "0".

3. Pay it down before statement cuts to a minumum amount say $100-$200, and let that report.

 

Any experience on how AMEX "likes" it to look, or what overall best practices are? I haven't ever really used a CC in this manner before.

 

Thanks in advance!

 

Start: MyFICO EQ 579 (Oct 2013)
Now: MyFICO EX 717 | EQ 697 | TU 727 | (DEC 2014)

AMEX Everyday $23.5K | Chase Marriott Premier $12K | Sportsman Guide Visa $10K | Discover IT $9K | Loft MC $7900 | J Crew $7150 | Chase Freedom $5.5K | Talbots $5100 | Barclays Sallie Mae $5K | Nordstroms $5K | Amazon $3700 | Banana Republic $3500 | Macys $2500 | Cap One QS1 $1800 | Cap One QS1 $1750 |
Message 1 of 7
6 REPLIES 6
Creditaddict
Legendary Contributor

Re: Question about best cycle to pay AMEX ED

the only reason to pay before the statement and the reporting is for util if you are getting ready to apply for something otherwise util has no memory and you are just creating more work for yourself trying to time payments for no reason... a pay in full is a pay in full to a creditor.

Message 2 of 7
ezdoesit
Valued Contributor

Re: Question about best cycle to pay AMEX ED


@Creditaddict wrote:

the only reason to pay before the statement and the reporting is for util if you are getting ready to apply for something otherwise util has no memory and you are just creating more work for yourself trying to time payments for no reason... a pay in full is a pay in full to a creditor.


+1

Message 3 of 7
lonelyisland
Frequent Contributor

Re: Question about best cycle to pay AMEX ED

OK, I was asking because on a credit recon recently, a rep mentioned that I hadnt used XYZ card, and I do use it sometimes I just PIF when I get paid (happens to be a week before the statement is cut) - so I wasnt sure what to make of the comment. Got me wondering if the companies themselves care about the way the card is used and paid. 

 

Thanks. 

Start: MyFICO EQ 579 (Oct 2013)
Now: MyFICO EX 717 | EQ 697 | TU 727 | (DEC 2014)

AMEX Everyday $23.5K | Chase Marriott Premier $12K | Sportsman Guide Visa $10K | Discover IT $9K | Loft MC $7900 | J Crew $7150 | Chase Freedom $5.5K | Talbots $5100 | Barclays Sallie Mae $5K | Nordstroms $5K | Amazon $3700 | Banana Republic $3500 | Macys $2500 | Cap One QS1 $1800 | Cap One QS1 $1750 |
Message 4 of 7
robbulous
Regular Contributor

Re: Question about best cycle to pay AMEX ED

From what I've heard AMEX prefers you to pay in full every month, whether it's a charge card or credit card.


NPSL.................$30,000............$28,000.............$20,500............$28,000............$80,000............$19,000............$21,300..............$20,500
Current FICO Score Across All 3: 770+..... GOAL: 800+ Current Utilization: 5%....... Infiniti Financial Auto Loan at 1.9%
Message 5 of 7
Creditaddict
Legendary Contributor

Re: Question about best cycle to pay AMEX ED


@lonelyisland wrote:

OK, I was asking because on a credit recon recently, a rep mentioned that I hadnt used XYZ card, and I do use it sometimes I just PIF when I get paid (happens to be a week before the statement is cut) - so I wasnt sure what to make of the comment. Got me wondering if the companies themselves care about the way the card is used and paid. 

 

Thanks. 


if it's always reporting $0 on the credit report then they dont' know you are using it... they can only see activity if they see a balance which means you are letting a statement generate with a balance. that's why if you are paying all cards before a statement it's good to rotate which card you actually let report each month.

Message 6 of 7
bada_bing
Frequent Contributor

Re: Question about best cycle to pay AMEX ED

The question about paying before statement cut and showing a "0" balance depends

on who you are talking about. A card issuer knows how much you charged on their card

each billing cycle. You won't influence them by having a "0" balance report. Most big 

issuers have their own internal scoring and a raw FICO doesn't have much or even any

sway.

 

The interesting question I haven't seen asked before is what influence does seeing

activity on competing card issuer's accounts have? The conventional advice is to have

all accounts report "0" balance except one report <10% for maximum scoring. If you do

that for every billing cycle though, maybe you are harming your credit file more than

helping it ? The reasoning is, especially on a manual review, it might be better to report

larger balances on competing issuer cards that get paid in full monthly? That way you are

demonstrating how much potential business your account represents to an issuer. If

all your report shows them is you pay off a $100 balance on one card each month,

your credit file isn't indicating you do much credit card swipe $$$ that can be lured away

from a competitor. There are lots of people with sky high FICO's that don't have much

profit potential as credit card account holders. 

 

I have been told by CSR's during calls about unrelated issues that they notice my longstanding

autopayment history. All my accounts are set to autopay in full on the due date and have been, in

some cases, for over a decade. Although I don't have a specific example where having my bank

account tied to an autopay has influenced a CSR, I strongly suspect it has a positive influence. If you 

need a little good karma on a manual review for some issue, a multiple year autoPIF from a

funded bank account might be the little bit that influences an issue to go your way.....or not. YMMV 

+ 850 FICO8 since 2015, Thanks MyFICO - 5+ years since last HP
Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.