Is making 4 or 5 payments to your credit card each month bad if CL is high?

[MikeyMagic]

Hi

This doesn't apply to me now but I have been curious about this. Let's say I have a credit card with a $5000 CL. And I spend $4500 on the card within a week. Let's say the statement closing date is 3 weeks away. Will Chase or Cap1 or Discover or any credit card company have a problem if I then paid for example $1400 the next week, $900 a few days after that, $1000 a week later and then the remaining balance before the statement closing date? So I would make 4 or 5 or even 6 payments to pay off the balance in a given billing cycle? 

I would hope not but with all these algorithms these companies use I'm thinking maybe they would. I remember Cap1 froze my account with my paltry $300 CL when I made a couple payments within a day of each other. Or maybe it was 2 payments in a day. Cap1 was immediately giving me my CL back once I made a payment before even taking the money out of my checking account. So I don't know if that played a role.

Thanks to anyone that knows the answer - I gamble and play poker and for a CL of $5000 or higher I can see myself wanting to pay a bunch of times a month rather than like $4500 or more all at once. I just don't want these banks/card companies to close my account doing so.

[Brian_Earl_Spilner]

It depends on the lender. Amex allows you to make up to 5 payments a day. As you discovered with cap1, they're not a fan of multiple payments. Their fraud algorithms kick in and you can expect at least a delay in payment posting of 2 weeks, if the account isn't frozen, when you make too many payments in a certain amount of time. That being said, I've made 3 or 4 payments a months with cap1 without any delays when I started my rebuild and the limits weren't enough for my spend. It even led to them increasing my limits, so I assume it's a timing issue with them. 

[Rogue46]

I put 100% of my daily spend on credit cards and pay them daily or at the most within a few days so multiple, multiple payments within the billing cycle and never had any issues.

[MikeyMagic]

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@Brian_Earl_Spilner wrote:

It depends on the lender. Amex allows you to make up to 5 payments a day. As you discovered with cap1, they're not a fan of multiple payments. Their fraud algorithms kick in and you can expect at least a delay in payment posting of 2 weeks, if the account isn't frozen, when you make too many payments in a certain amount of time. That being said, I've made 3 or 4 payments a months with cap1 without any delays when I started my rebuild and the limits weren't enough for my spend. It even led to them increasing my limits, so I assume it's a timing issue with them. 

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Thanks sir appreciate the reply and your experience is noted.

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[Zoostation1]

@Brian_Earl_SpilnerI used to make 3-5 payments a month on Capital One cards early in my rebuild as well, but they were generally spaced out enough to not be a problem.  The only delay I had was when I made my first larger payment (~$1500).  That payment was held and after complaining a supervisor agreed to release the available credit if we conferenced in my bank to confirm the funds had cleared and was no longer a pending transaction.  These days I try to avoid multiple payments where possible.

[coldworld]

I have not had issues making multiple payments with Chase or Amex.

Back in the day when I had Cap1 cards, they did not like that. Multiple holds on large payments.

[MikeyMagic]

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@coldworld wrote:
I have not had issues making multiple payments with Chase or Amex.

Back in the day when I had Cap1 cards, they did not like that. Multiple holds on large payments.

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Thx for you DP. Yeah it's obv if Cap1 froze my account because I made 3 payments in 2 days on a bucketed $300 CL card, I'm gonna have to handle my Cap1 payments differently. 

[BuckyB]

I really don't understand why they flag accounts for this.  Especially these days when people are moving money OUT of checking accounts in favor of putting it in savings and money market accounts that have at least halfway decent interest rates.  Often these "high yield" accounts are at other banks.

I have several checking accounts at different banks with a couple thousand in each so if I have a large credit card bill I pay that in 2-3 smaller amounts from these different banks. If I didn't, I'd have to move a large amount out of savings at different banks into one single account and THAT would probably cause some algorithm to freak out too!

[MikeyMagic]

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@BuckyB wrote:

I really don't understand why they flag accounts for this.  Especially these days when people are moving money OUT of checking accounts in favor of putting it in savings and money market accounts that have at least halfway decent interest rates.  Often these "high yield" accounts are at other banks.

I have several checking accounts at different banks with a couple thousand in each so if I have a large credit card bill I pay that in 2-3 smaller amounts from these different banks. If I didn't, I'd have to move a large amount out of savings at different banks into one single account and THAT would probably cause some algorithm to freak out too!

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These algorithms are annoying as hell. 

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