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Transactions vs Payments

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Anonymous
Not applicable

Transactions vs Payments

if i make 10 purchases on my credit card and pay off my card in that same month is that seen has me making 10 payments? 

Message 1 of 22
21 REPLIES 21
Gmood1
Super Contributor

Re: Transactions vs Payments

Nope, just one.

Message 2 of 22
Nomad3
Frequent Contributor

Re: Transactions vs Payments


@Anonymous wrote:

if i make 10 purchases on my credit card and pay off my card in that same month is that seen has me making 10 payments? 


If you're talking about FICO scoring then it's the monthly statement payment that is counted. So 1.

 

If you're talking about the credit card companies internal view it will show that you made multiple payments in a month. Assuming you are cycling a low limit this could show them that you need a higher limit

Message 3 of 22
K-in-Boston
Credit Mentor

Re: Transactions vs Payments


@Nomad3 wrote:

@Anonymous wrote:

if i make 10 purchases on my credit card and pay off my card in that same month is that seen has me making 10 payments? 


If you're talking about FICO scoring then it's the monthly statement payment that is counted. So 1.

 

If you're talking about the credit card companies internal view it will show that you made multiple payments in a month. Assuming you are cycling a low limit this could show them that you need a higher limit


This would be the case if OP made 10 purchases in a month and made 10 payments.  Without elaboration on OP's part, we can only make assumptions, but my thought that was that perhaps the question pertained to a card offering "make X payments on time and receive a credit line increase" or similar?  In that case, the lender would be looking for X statements to go by with at least a minimum payment made in a timely manner.  Like a Capital One credit steps card, making 7 purchases and 7 payments in one month would not satisfy that requirement, but making 7 or more on-time payments over the course of 7 statements would.

Message 4 of 22
Remedios
Credit Mentor

Re: Transactions vs Payments

Right, but it would increase CKs percentage of "on time payments"  which is probably why OP is asking.

 

 

Message 5 of 22
Anonymous
Not applicable

Re: Transactions vs Payments

Exactly!  My goal is to reach 600 on time payments. Which, if I am understanding everyone correctly, means that every time I make a purchase I should immediately make a payment on my CC instead of paying it all off before the end of the month?! 

Message 6 of 22
K-in-Boston
Credit Mentor

Re: Transactions vs Payments


@Anonymous wrote:

Exactly!  My goal is to reach 600 on time payments. Which, if I am understanding everyone correctly, means that every time I make a purchase I should immediately make a payment on my CC instead of paying it all off before the end of the month?! 


No, in that case paying 30 times a month or 1 time a month on the same account still equals 1 on-time payment as only one payment is due each month.

Message 7 of 22
Anonymous
Not applicable

Re: Transactions vs Payments


@Anonymous wrote:

Exactly!  My goal is to reach 600 on time payments. Which, if I am understanding everyone correctly, means that every time I make a purchase I should immediately make a payment on my CC instead of paying it all off before the end of the month?! 


@Anonymous No; not at all.  Your lender only reports your account status to the credit bureaus once per month and they will only report that your payment was on-time for the last payment cycle.  The number of times you pay the lender is irrelevant; they will only report that your account payment status was "on-time."

Message 8 of 22
Kforce
Valued Contributor

Re: Transactions vs Payments


@K-in-Boston wrote:

@Anonymous wrote:

Exactly!  My goal is to reach 600 on time payments. Which, if I am understanding everyone correctly, means that every time I make a purchase I should immediately make a payment on my CC instead of paying it all off before the end of the month?! 


No, in that case paying 30 times a month or 1 time a month on the same account still equals 1 on-time payment as only one payment is due each month.


One place where the number of cards, and loans helps get there faster.

You should rush out and get a lot more cards   Smiley LOL  Heart

(600 pmts / 12mo-year) = 50 years for 1 card

50 years  / 50 cards = 1 year

 

Message 9 of 22
K-in-Boston
Credit Mentor

Re: Transactions vs Payments


@Kforce wrote:

@K-in-Boston wrote:

@Anonymous wrote:

Exactly!  My goal is to reach 600 on time payments. Which, if I am understanding everyone correctly, means that every time I make a purchase I should immediately make a payment on my CC instead of paying it all off before the end of the month?! 


No, in that case paying 30 times a month or 1 time a month on the same account still equals 1 on-time payment as only one payment is due each month.


One place where the number of cards, and loans helps get there faster.

You should rush out and get a lot more cards   Smiley LOL  Heart

(600/12)=50 months of payments

50 months / 50 cards = 1 year

 


I almost typed it but never want to encourage people to just rush out and get cards for the sake of having cards.  But yes, the only way to get that number to go up is to have more accounts with satisfactory payments each month.

Message 10 of 22
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