cancel
Showing results for 
Search instead for 
Did you mean: 

Paying credit card charges as they accrue

MileHigh96
New Contributor

Paying credit card charges as they accrue

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!

BK7 discharged - 06JUL2021

Before discharge:

Since discharge:


FICO8 Scores on 08/19/2021:
Message 1 of 11
10 REPLIES 10
pizzadude
Moderator Emeritus

Re: Paying credit card charges as they accrue

The card balance when your next statement cuts would be what shows on your credit report, this is what would be factored into your FICO score.   Assuming you're paying it down ( or all the way to $0 ) there shouldn't be any negative impact on your score.

 

Consistant use of your card will help when it comes time to ask for a CLI, which I'm assuming is your goal here, right?   There shouldn't be an issue unless your CU limits the number of payments / transfers you can make.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 11
Brian_Earl_Spilner
Community Leader
Mega Contributor

Re: Paying credit card charges as they accrue

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. 




Message 3 of 11
ZeroQuest
Regular Contributor

Re: Paying credit card charges as they accrue


@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.


Message 4 of 11
Iusedtolurk
Established Contributor

Re: Paying credit card charges as they accrue


@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. 


This is why I always sift through the forum even if it's not a topic that directly affects me currently. Tidbits of experiences in certain scenarios that could arise down the line.

 

I have been slowly cutting down the number of cards with balances just to see how my scores react and keeping the zero balances at that stage (utilizing them and PIF) no sock drawing.

 

Now I'm thinking I should start letting a balance occur from time to time (cycle the zero balances) to not cause that scenario where the algo may think I'm getting in Financial distress in the event I make a larger purchase and pay it down a little slower.

Message 5 of 11
SouthJamaica
Super Contributor

Re: Paying credit card charges as they accrue


@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.


Total revolving limits 677500 (584500 reporting) FICO 8: EQ 758 TU 777 EX 749

Message 6 of 11
FireMedic1
Super Contributor

Re: Paying credit card charges as they accrue


@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.






My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's.
Message 7 of 11
MileHigh96
New Contributor

Re: Paying credit card charges as they accrue


@ZeroQuest 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.

BK7 discharged - 06JUL2021

Before discharge:

Since discharge:


FICO8 Scores on 08/19/2021:
Message 8 of 11
Kforce
Valued Contributor

Re: Paying credit card charges as they accrue


@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 least one card reports some small balance each month.


^^^ This

Many people with smaller CL's pay 2-4 time a month.

Use your card and pay as needed.

 

It might be a problem if you had $20,000 limit and were using your card for $15,000 a week.

Different picture than a small limit and normal spend

 

FNBO Cashback Visa (20k) / Bank-West Cashback MC (20k) / USAlliance 3% Visa (20k)
Two Old CU cards (20k each) -- (Sock Drawer) / Secret 3% MC (20k)
Ficos : 830 / AAoA : 9 yrs / AoOA : 24 Yrs / AoYA : 0
Message 9 of 11
Kforce
Valued Contributor

Re: Paying credit card charges as they accrue


@FireMedic1 wrote:

@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.


From Dico's online payment page. (computer program).

My daughter has small limit and pays many times a month, push from CU.

 

 

FNBO Cashback Visa (20k) / Bank-West Cashback MC (20k) / USAlliance 3% Visa (20k)
Two Old CU cards (20k each) -- (Sock Drawer) / Secret 3% MC (20k)
Ficos : 830 / AAoA : 9 yrs / AoOA : 24 Yrs / AoYA : 0
Message 10 of 11
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.