So here is the question.
I have a QS1 with a measily 300 limit.
It has 1.5% CB which is nice enough for a beginner unsecure card.
My quesiton is can i make a charge of say 150 and next day pay it of and after it is paid off the following day again make another 150 card purchase etc. up to a few days before the report date of the card.
Then come time to report just leave a small 10% or < balance to report.
A would i get my cashe back on all the purchases spent and B am i safe doing this as long as i pay daily on the card.
I currently have 2 secure cards a 53rd and PNC.
Neither graduate in my experience and neither will offer me a an unsecure based on SP.
so my only choices here are run the carad game with QS1 and show i am good for spending and paying etcc, and then at 62 days do the CLI request and then wait for the 5-6month CLI auto and just wait till my CR gets a little better with some of the baddies falling off .
Is there a best reccomendation plan for using the others ? 10% no % rotate which ones get some percent etc... ?
Thaks for the tips .
You folks are pretty awesom in these parts
Yes, by all means use $290 of that $300 QS card. Get the rewards. Pay it daily if necessary.
Utilization may appear "high percentage " but that's only a point in time measure, and really only relevant when the statement prints, not during the month. It shows good payment activity to Cap One and gets you a nice reward for your effort.
When you app for your next Cap One it will reflect well. If you want to control utilization for a future app, just plan your payments to get lower reported on a statement. By frequently paying, you should be able to develop an understanding of how long it takes for those payments to post through Cap One, to your available credit.
Thanks for the feedback NRB. I have a few questions to clarify to make sure that i am on the same page as you.
"Yes, by all means use $290 of that $300 QS card. Get the rewards. Pay it daily if necessary."
So with this statement i am understanding that i use up $290 in a single day gainning 1.5% on that for cash back.
If i were to go home that night and post a payment to the card I would just be waiting for the payment to clear and then....
DO IT AGAIN !!! AHAHAH!! (Voice of Dextor Laboratory)
That leads me to the next part
"Utilization may appear "high percentage " but that's only a point in time measure, and really only relevant when the statement prints, not during the month."
I am not following on this part. If i am paying it on a daily basis the only people that would know it is a high utilization is the Cap one folks ( Who are seeing me pay it daily) and myself.
When it goes to report ( which i am still trying to understand when it reports vs when it is due) Just make sure the balance is small 8-10%
This would then be only 3% of my total CL as i have the 2 other secure cards at 300 as well. Is That ok ?
Now for another thought that came to mind based on this statement.
"It shows good payment activity to Cap One and gets you a nice reward for your effort.
When you app for your next Cap One it will reflect well. "
Do you have experience with QS or CAP1 as to whether they like this type of behavior or not or is this a universal duh thatmost CC like ? Sorry for the ignorance.
Also will i get rewards on all the money spent to the card even if it is more than the 300 limit ?
Credit cards are different than debit cards. When you do anything as debit, the funds are deducted from your checking account immediately.
When you use credit (either through a debit or a credit card), the funds are "authorized" but usually don't post for 2-5 days. You cannot pay them off or dispute them until your purchases officially post.
So the answer is no, you cannot charge $290 on your credit card one day, pay it off immediately, and then charge another $290 on it the next day to get all of the rewards. You need to wait for the charges to post to your account, pay them off, and then you can spend more money on your card after all of that happens.
I should have known that really as my other 2 secure cards take a few days to post the transaction althoug the credit limit decreases right away.
That aside, If i pay it when I see it then and verify it went through by the credit limit going back to full, then that would be fine and I would effectivley be able to rock the 1.5% CB well beyond the 300 limit as long as i am paying it off immediately after using it.
Most card lenders won't let you pay your balance off early.
If you try to pay online or whichever method you use, the lender will only let you pay up to the amount that's the current balance on the card, nothing more. The current balance is a total of cleared transactions that have posted to the card. If you have a card with a $5,000 credit line for example, you can have a $4,600 current balance and only $100 in avaliable credit because you just made a $300 purchase---at that point you'd only be able to pay ONLY on the $4,600, and not $4,900 of it.
Unless you have some bank or credit union with an outdated system that just lets you "transfer" funds from one account to your credit card with no checks in place, you cannot over pay on your credit card, and with those outdated systems, the bank would just send you a check for the negative balance on your account.
Perhaps my question is not conveying what i am trying to accomplish currectly.
I am not trying to pre-pay (baloon pay) if you will more than my CL.
I am asking if I use within the CL up to 90% of it say, then it posts, then i pay it off, it will reset yes, the amount of credit available at some point in time that month ( probably within a few days) then i would be free to use the re-instated balance again and just keep doing that etc... being mindfull of the posting date so as not to max the card or maybe it doesnt matter, maybe it is good to max the card, then pay it off. Technically 270 of 900 (thats my total CL) is exactly 30% UTIL .
Look forward to hearing thoughts on this.
WoW Chynnac !! Thats intense!
Do you mind sharing with me what your situation was and the time frame in which that took place.
Allot of people here are portraying that usage is not the whole 9 yards but the entire credit picture. I get that it makes sense. I guess my question is what did you CR profile look like during this time. Did you have any baddies at all on your account what was your AAoA (mine is 11years) this will shorten when some of my old cards fall off in a year or two but whatever to that.
I would like to know what to expect on my QS1.
My plan is to do what you did, blast the card im talking 2500 a month through it for the first 2 cycles then request an increase and continue on hoping to get a decent CLI then in another 3-4 months get the steps action on another CLI.
Then garden for another few months and start putting some sights on serious cards AMEX, CITI, CHASE.
Currently I am as follows for credit
FiCO 8 scores
TU - 613
EX - 625
2 CO under 130
1 paid (370)
1 medical 699)
53 months since last 30 late
3 accounts ever that had 30/60 late
DTI is %80 on $600 (just closed on a house and now they will be 0)
AAoA - 92months
AoOA - 140months
AoMR - 24months this will soon change i just got the QS1
#RI - 4
That seems like a pretty detailed breakdown as i am trying to really track where i am with this vs others.
I may start another thread to gather attention for specifics of this but will see what kind of response i get here.
Thans again to all who stop by to read and remeber to let us know if you have experience in the topics discussed, that is where the value is and one day, you may need such value that may even be a direct result of somehting you shared and prospered someone else who then gave back so please comment if you know.
Never know how it will return to you at a later time
P.S. Income is greater that 100k