@thatguycx wrote:
- Which option would maximize your score? Multiple on-time payments (not paying the full amount at once) OR paying in full (one payment)
- If I have auto-pay on (for one payment) and then for that same month, do a manual payment (for a second payment), will that count as 2 on-time payments on the credit report or just 1 on time payment?
Other have answered - my answer is basically the same, but will elaborate a bit.
Question 1 - In general, each account will issue a statement on the same day of each month (say, the 19th), or within about a day or two of that depending on weekends. Whenever they issue the statement, it will show your balance at that moment in time - the statement balance. That is what goes on your credit report. Nothing else eg number of payments or how the payments were broken up goes on the credit report. Other lenders, who you might apply to for additional cards or accounts, do not know, and would not care, whether it was one $3k payment or three $1k payments.
Question 2 - Simple answer, it will count as just one on-time payment. All that matters for on-time payment is: "was the minimum amount paid by the due date?" It is binary, yes/no.
Making multiple payments does have uses, but it's more for managing your CLs, particularly if your CLs are too low for how you want to use the card. By making multiple payments throughout the month, you keep the balance from ever being too high, which may matter for that lender's internal scoring in some cases. It also can simply be a way for you to avoid a balance you can't pay from one paycheck or whatever sneaking up on you.
Having said that, there are some other related things you didn't ask about, but which might be useful to know. Mainly, your score will be maximized if all cards except one report a balance of $0 on the statement, and the one that reports a balance is a small balance, say 5% utilization. That is known as the All Zero Except one (AZEO) method and is useful if you are preparing for an important application that you aren't sure will be successful. It is not necessary all the time, because all scoring relating to your balances is based only on your current statement balances at that point in time. It does not build up over time. If all your cards are at 90%, then you pay them all off, as soon as the statements cut showing they were paid off, your score will be exactly the same as if they had been paid off all along, or vice versa.
Hope this helps! Good luck, and have a great 2020.
Why complicate your life? Use your cards, when the bill is due make sure to pay in ful , if able, and move on to next statement
. You dont score points for multiple payment a month, just each month you successfully paid your cc on time.
. You dont score points for multiple payment a month, just each month you successfully paid your cc on time.
@thatguycx wrote:Of course the answer would be to pay off your credit card balance in full before the end of the month so you don't rack up any interest charges, but that's not what I'm getting at. This is for in terms of maximizing your credit score.
Here's how I do it: My first credit card from my local credit union is a low-rate card. Rather if I pay it off in full or not really depends if I feel like it, but usually, I have auto-pay on for the minimum only and then I go and do a manual payment too also in order to lower the utilization. Of course if the rate was high like most of the big name credit cards, I would pay it in full at the end of the month but with this card, it's a 50/50 chance that I will do either or.
So I kinda have two questions here.
- Which option would maximize your score? Multiple on-time payments (not paying the full amount at once) OR paying in full (one payment)
No difference.
2. If I have auto-pay on (for one payment) and then for that same month, do a manual payment (for a second payment), will that count as 2 on-time payments on the credit report or just 1 on time payment?
They just report that it's paid on time, not how many payments came in.
The method I have used for years and what I learned here...I'm never later. I pay my credit cards 2 days (my choice) before the closing date on my statement. This date pretty much is the same every month. I put that date on my calendar.
Starting Score: EXP 587 10/27
@AverageJoesCredit wrote:
Why complicate your life? Use your cards, when the bill is due make sure to pay in ful , if able, and move on to next statement
+1
I totally agree so many times we see people, paying mutltiple times trying to get paid before that statement cuts, on my goodness . Just pay your bills on time, pay in full when you can, if not pay as much as you can. Relax and enjoy your familiy and life. People get way too wrapped up in credit scores.............................................
If you are replying to me...I am happy and have a wonderful life. Being fiscally responsible doesn't have to be an awesome task. I was simply sharing a tool that I learned many years ago of looking at statement ending date as opposed to due date. Not everyone here can pay a credit off every month. Using this method my score jumped 190+ points. I'm now 789. It came in handy purchasing a home.