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it just seems really strange to me to make additional payments on the card like that. what are you accomplishing by doing it that way?
It could help the (User) with cash flow, if they tend to send it as they get it, paying twice a month get it paid where one a month they did not save the cash to pay it then.
Also it help with the available credit line, If you pay off some of it your available credit goes up.
And yet people say you need to pay the balance when u get the statement, not before..
Quote:
Originally Posted by jencam
Why would anyone say that?
The balance on the day the statement closes is generally the number that the card company reports to the credit bureaus. If it's always zero, it looks to the credit agencies as if you're not using the card. So the ideal is to pay the card after the monthly statement closes, but early enough before the due date that you're not risking a late fee. If you've run up more than 20% of the available credit on the card, then it's best to pay enough of that off before the statement closes to get the figure down below 20%, but leave the rest to be reported when that statement closes (again, paying it off after the statement closes but before the due date).
There's often an interval of three weeks or so between when the monthly statement closes and the statement due date, so getting the payment in on time isn't tough (especially if you use electronic bill pay). You can either set up autopay to do it, or just get into the habit of paying the card off at the same time every month (which is what I do).
it just seems really strange to me to make additional payments on the card like that. what are you accomplishing by doing it that way?
I use it for EVERYTHING including bills like electricity. Anything that doesn't charge a fee, like my mortgage and HOA dues. I don't want the balance to be high all the time, so paying twice a month ensures that.
The balance on the day the statement closes is generally the number that the card company reports to the credit bureaus. If it's always zero, it looks to the credit agencies as if you're not using the card. So the ideal is to pay the card after the monthly statement closes, but early enough before the due date that you're not risking a late fee. If you've run up more than 20% of the available credit on the card, then it's best to pay enough of that off before the statement closes to get the figure down below 20%, but leave the rest to be reported when that statement closes (again, paying it off after the statement closes but before the due date).
There's often an interval of three weeks or so between when the monthly statement closes and the statement due date, so getting the payment in on time isn't tough (especially if you use electronic bill pay). You can either set up autopay to do it, or just get into the habit of paying the card off at the same time every month (which is what I do).
It doesn't matter. It doesn't help your score to have a balance. I do pay attention to what day it reports, and make sure that it will be 0-10% on that day.
I just looked at one of my cards. The statement date is the 15th. They report on the 16th. Payment due date is the 12th. In that case, electronically paying on or a couple days before the due date will work out the way I want: showing a 0 balance or one well below 10%. I'm glad the convo led here so that now I know that one is easy.
I used mobile banking and as soon as I make a charge I can almost immediately pay it off my transferring the funds over from my checking account. But is this the best approach to take? Does it effect your credit/rewards when way or another to not do this and instead wait until whenever the bill is due?
I think I know the answer, but would rather be safe
Depends on the utilization ratio if its a big purchase for me. If its over 10% I pay down immediately. Smaller purchases I pay right after my statement date of the multiple CC I have.
I use it for EVERYTHING including bills like electricity. Anything that doesn't charge a fee, like my mortgage and HOA dues. I don't want the balance to be high all the time, so paying twice a month ensures that.
why dont you want the balance to be "high"? if you are just using it for monthly spend and then paying off the full balance; how is the full monthly balance going to hurt you?
if you want to keep your utilization % down, it may be easier to request in increase in credit line. i have done that to help maintain a low utilization. i also put every expense i possibly can on my credit card (without incurring a fee).
i was never a fan of putting things on automatic payment but i have decided to do that now to keep things easy for me. so the full payment gets paid each month on its own. easy peasy.
The balance on the day the statement closes is generally the number that the card company reports to the credit bureaus. If it's always zero, it looks to the credit agencies as if you're not using the card. So the ideal is to pay the card after the monthly statement closes, but early enough before the due date that you're not risking a late fee. If you've run up more than 20% of the available credit on the card, then it's best to pay enough of that off before the statement closes to get the figure down below 20%, but leave the rest to be reported when that statement closes (again, paying it off after the statement closes but before the due date).
There's often an interval of three weeks or so between when the monthly statement closes and the statement due date, so getting the payment in on time isn't tough (especially if you use electronic bill pay). You can either set up autopay to do it, or just get into the habit of paying the card off at the same time every month (which is what I do).
This!
The bank kept telling me to wait, but i didnt listen and for 2 years it never helped or hurt, till i close the account. So thats 2 years of my credit that i lost and hurt. Its stupid that they do that, but like always, its a game for them. Card always showed zero balance..
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