Just a question that I have no idea what the answer is to it 😕
If you have a low limit CL card and want to use it to really build up a history with it, is there any "penalty" or hindrance to your credit score if you use it in the following way? Say I use this card to fill up with gas every week and then I get home and schedule the payment for that charge with my CU's Bill Pay, will the CU look at that as funny if I'm paying every charge as it comes up (the card will be through the same CU that I bank at)? Basically 4 charges per month that get the payment made within a couple of days of the charge incurring. So basically I'm, in a way, using the card more like a debit card than like a credit card and just paying the balances immediately as they accumulate.
TIA for the insight!
The issue you'll have is you're establishing a pattern. Down the road if you decide to carry a balance for whatever reason, the computer could think you're in financial distress and you may receive AA of some sort. That's what happened to me with Amex. Carried a balance one time in 2 years and they slapped me with a spending limit because I wasn't paying the balance down fast enough.
Just pay it once a month unless you need to cycle the limit.
@Brian_Earl_Spilner wrote:The issue you'll have is you're establishing a pattern. Down the road if you decide to carry a balance for whatever reason, the computer could think you're in financial distress and you may receive AA of some sort. That's what happened to me with Amex. Carried a balance one time in 2 years and they slapped me with a spending limit because I wasn't paying the balance down fast enough.
Just pay it once a month unless you need to cycle the limit.
As someone that also never carries a balance and PIF every day, I'm thinking that may be a mistake. That's not to say you should carry a balance after your statement cuts - don't. But paying every day like I have may also be a bad idea. I'm personally looking at options that make sense to pay once/month rather than daily.
@MileHigh96 wrote:Just a question that I have no idea what the answer is to it 😕
If you have a low limit CL card and want to use it to really build up a history with it, is there any "penalty" or hindrance to your credit score if you use it in the following way? Say I use this card to fill up with gas every week and then I get home and schedule the payment for that charge with my CU's Bill Pay, will the CU look at that as funny if I'm paying every charge as it comes up (the card will be through the same CU that I bank at)? Basically 4 charges per month that get the payment made within a couple of days of the charge incurring. So basically I'm, in a way, using the card more like a debit card than like a credit card and just paying the balances immediately as they accumulate.
TIA for the insight!
I have had many cards and have never had a problem with making multiple payments.
I've run into limits on how many payments I can pull on the lender's website, but never a problem on pushed payments like what you describe.
No I don't think it would negatively affect your credit score in any way, unless you wind up with all your reported balances at zero. That gets you a penalty. You want to make sure that at least one card reports some small balance each month.
@SouthJamaica wrote:
@MileHigh96 wrote:Just a question that I have no idea what the answer is to it 😕
If you have a low limit CL card and want to use it to really build up a history with it, is there any "penalty" or hindrance to your credit score if you use it in the following way? Say I use this card to fill up with gas every week and then I get home and schedule the payment for that charge with my CU's Bill Pay, will the CU look at that as funny if I'm paying every charge as it comes up (the card will be through the same CU that I bank at)? Basically 4 charges per month that get the payment made within a couple of days of the charge incurring. So basically I'm, in a way, using the card more like a debit card than like a credit card and just paying the balances immediately as they accumulate.
TIA for the insight!
I have had many cards and have never had a problem with making multiple payments.
I've run into limits on how many payments I can pull on the lender's website, but never a problem on pushed payments like what you describe.
No I don't think it would negatively affect your credit score in any way, unless you wind up with all your reported balances at zero. That gets you a penalty. You want to make sure that at lease one card reports some small balance each month.
@SouthJamaicaI think it was Disco that said a couple times way back in the begining of the rebuild. Some type of warning you just made a payment and had to wait so many days to make the next.
@AlanGJP wrote:
@Brian_Earl_Spilner wrote:The issue you'll have is you're establishing a pattern. Down the road if you decide to carry a balance for whatever reason, the computer could think you're in financial distress and you may receive AA of some sort. That's what happened to me with Amex. Carried a balance one time in 2 years and they slapped me with a spending limit because I wasn't paying the balance down fast enough.
Just pay it once a month unless you need to cycle the limit.
As someone that also never carries a balance and PIF every day, I'm thinking that may be a mistake. That's not to say you should carry a balance after your statement cuts - don't. But paying every day like I have may also be a bad idea. I'm personally looking at options that make sense to pay once/month rather than daily.
I wasn't thinking of paying it daily, more like once a week, so it would be 4 payments per month as debt accrues on this one particular card instead of paying it when the statement drops at the end of the billing period.
