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Agree about the obsession over credit scores taking tiny hits from cc purchases. No reason to clear cc charges that frequently. I've always paid off my cc balances each month, but it's important to not charge more than you CAN pay off in any one cycle. If I am paying off a cc from an interest-bearing bank account I prefer leaving as much money in it to work for me for as long as possible (yea, I know...it's tiny, but better than a kick in the head); so pay the cc right before the monthly due date, not before.
For me its a mental thing. I love seeing the zero balance
As a reformed financially wiser, I have zero cards. Once they changed the new fee for making more then two payments a month I was done with 'riding the credit wave'. Life is more manageable without a monthly card payment. I buy gift visa if I absolutely HAVE to secure a reservation with such. Op- pay it once a month. Beyond that ...pay cash if it's that readily utilized. Money has not 'worked' for me. I had to work at managing it without being pummeled with fees.
As a reformed financially wiser, I have zero cards. Once they changed the new fee for making more then two payments a month I was done with 'riding the credit wave'. Life is more manageable without a monthly card payment. I buy gift visa if I absolutely HAVE to secure a reservation with such. Op- pay it once a month. Beyond that ...pay cash if it's that readily utilized. Money has not 'worked' for me. I had to work at managing it without being pummeled with fees.
What fee are you talking about for making more than two payment a month?
Even so, this only matters if there's going to be a credit inquiry where the score needs to be as high as possible during the month following.
I have one card with a 0% APR and $0 xfer fee special, so I bought my wife's car recently with my cash back 2.5% card, earned the cash back there and then xferred the balance to the other card so I can free up my cash for 12 months. However, that maxed out the card I transferred the balance to, which brought my score down 35-40 points.
Since I have no need for a mortgage in the next year, having my score dip as I pay the minimum payments on that card is meaningless. Going from 805 to 760 is hardly an issue - even going from 740 to 705 isn't a big deal. The only time it might be concerning is if your credit was marginal to start with - dropping below 620 isn't smart, because you have a higher likelihood of needing credit in a pinch than those with 740+ scores.
Some people get so obsessed over their score without fully understanding the impact (or lack thereof) of that score decrease. As soon as I pay off that card at the end of the 12 month period, my score will rebound back to the 800s. I also have 15+ open credit card lines (I used to have 22+ but closed some due to annual fees), so my overall utilization rate is still below 10% despite the high balance on one card.
I always wondered what the benefit was of having wo many credit card lines was and how difficult it is to manage. In the last few years I’ve made about 70K a year (some years more, some years less) and it seems like 22 cards would be way too much to juggle. Right now I only have three which is much more doable for me. I plan to have 5 before I take out a home mortgage, but have read it’s best to wait 90 days between applying for cards. I could see how having 22 cards might make more sense if you have significantly higher income though.
What bank? It seems like chase and cap one let charges pend for 3 or 4 days. Its annoying and payment can't be made until it clears. In 2018 it should clear in a day
I use Bank of America and Chase. You’re right that both usually tend to take 3 or 4 days before they go through. The pending message usually shows up almost immediately, but it takes some days to process typically. It’s closer to immediate than waiting a month though haha.
I use Bank of America and Chase. You’re right that both usually tend to take 3 or 4 days before they go through. The pending message usually shows up almost immediately, but it takes some days to process typically. It’s closer to immediate than waiting a month though haha.
I always wondered what the benefit was of having wo many credit card lines was and how difficult it is to manage. In the last few years I’ve made about 70K a year (some years more, some years less) and it seems like 22 cards would be way too much to juggle. Right now I only have three which is much more doable for me. I plan to have 5 before I take out a home mortgage, but have read it’s best to wait 90 days between applying for cards. I could see how having 22 cards might make more sense if you have significantly higher income though.
Agree about the obsession over credit scores taking tiny hits from cc purchases. No reason to clear cc charges that frequently. I've always paid off my cc balances each month, but it's important to not charge more than you CAN pay off in any one cycle. If I am paying off a cc from an interest-bearing bank account I prefer leaving as much money in it to work for me for as long as possible (yea, I know...it's tiny, but better than a kick in the head); so pay the cc right before the monthly due date, not before.
Well stated.
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