credit card balance

[babbles]

how do creditors feel about customers running up their balances but paying it down a few days later??

[Anonymous]

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@babbles wrote:

how do creditors feel about customers running up their balances but paying it down a few days later??

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I have been doing that for decades and I never had a problem. I pay my CC's before the statements cut off on a daily basis

Thanks

Mark

[Kforce]

Like all things it depends on a few other factors.

If one has short credit history and low credit limits it is often necessary to run them up and pay off sometimes a few times during a month.

Others just don't like being in debt and when they see a large balance, pay it off.  Some want to manage what utilization reports and pay it before statement cuts every month. A few pay it down after large charges like tax's, insurance, etc.  I have never had a problem with making a few (3-4) payments during a month. I however don't spend more than my CL on the card and charges are reasonable for my income.

The danger is when one spends more than the credit limit and amounts that might look like you are spending more than you make.  Example:  You state 50k a year income, have a 10k CL and charge 8k, and do that 3 time during the month (24k thru a 10k card limit and  2/3 your yearly income.  So as with all financial things YMMV

[SoCalGardener]

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@babbles wrote:

how do creditors feel about customers running up their balances but paying it down a few days later??

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As long as they're getting paid, and their cards are getting used, I think they're quite happy! It's when you don't use a card, or don't make your payments, that they start getting upset.

Do you have a specific card in mind? Or are you just asking in general?

[SouthJamaica]

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@babbles wrote:

how do creditors feel about customers running up their balances but paying it down a few days later??

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My experience has been that they're fine with it.

[Remedios]

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@Anonymous wrote:

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@babbles wrote:

how do creditors feel about customers running up their balances but paying it down a few days later??

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I have been doing that for decades and I never had a problem. I pay my CC's before the statements cut off on a daily basis

Thanks

Mark

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I'm getting more confused with each post. In this post, you're paying your cards before statements cut.

Here  you're stating your "problem" is reaching 2% utilization if limits are increasing. 

Those aren't congruent statements 

[HHH71]

I try to make sure my cards never post a balance on a statement. However, I run between $12,000-$15,000 a month through them. I am often paying them off every few days or every week. I have a reminder in my google calender of when each card produces a statement so I can double check the balance is zero before the statement is produced. This obviously keeps utilization extremely low. Sometimes a big purchase hits and is pending and posts the same day a statement is produced. No big deal. So my utilization can be between 2% and 5% because of that. I haven't used my debit card in years. Everything goes on a credit card no matter how much or little. Maximizes cash back, points, etc. keeps someone between me and my bank account, and I have someone to help fight fraud.

I never however go any where near the CL. For example, my Amex Hilton Aspire has a $24k limit. I'll put $2k on it today and pay it as soon as it is no longer pending a day or two later. I probably make 7-10 payments a month on that card alone. It gets the most spend; around $8k a month. 

So, with this behavior, what do the banks think? They must like it. American Express has approved me for over $100k through 4 cards. I have 4 chase cards with over $30k CL. I have a Cap One and discover, both around 10k CL. My credit stays in the high 700's, and everyone seems to be happy.

hope this helps

[staticvoidmain]

Banks have no feelings. They have formulas.

If you pay your card in time, they don't care. They care about profits. As long as you use it, they still make money (interchange fees). This only mostly affects your credit, which the bank uses on their equations. If they have feelings, I would say they like it, because they make money from you with little to no risk.

[babbles]

I was just asking in general, appreciate the reply!

[Anonymous]

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@Remedios wrote:

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@Anonymous wrote:

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@babbles wrote:

how do creditors feel about customers running up their balances but paying it down a few days later??

---

I have been doing that for decades and I never had a problem. I pay my CC's before the statements cut off on a daily basis

Thanks

Mark

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I'm getting more confused with each post. In this post, you're paying your cards before statements cut.

Here  you're stating your "problem" is reaching 2% utilization if limits are increasing. 

Those aren't congruent statements 

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I let 2 percent report each month but I use much more. I am careful to not go over 2 percent report so I pay most off prior to statement closings. I have never had an issue

thanks

Mark