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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
Paying cc off once a month is much easier and makes it easier to balance our payment account too, why bother paying it early, there is no advantage unless a person does not know how to live within their income.
Paying cc off once a month is much easier and makes it easier to balance our payment account too, why bother paying it early, there is no advantage unless a person does not know how to live within their income.
I don't take it as far as OP, but it is a good way to ensure never being late, over the limit, or over-spending. I pay twice a month, sometimes more after a large purchase. I use it for everything for the cash-back, but I don't want to get over 50% of my limit ever, and I don't want my report to reflect more than 10% usage. I get a ten point hit for going over 20% on the day it reports.
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
Pay multiple times per month if your monthly spending is more than 25-30% of your credit limit or so, since the balance at the time of reporting can impact your FICO credit score. Otherwise it does not matter.
Pay multiple times per month if your monthly spending is more than 25-30% of your credit limit or so, since the balance at the time of reporting can impact your FICO credit score. Otherwise it does not matter.
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.
Paying Off a Credit Card Charge Immediately or Waiting Until the Due Day?
I think I know the answer, but would rather be safe
What matters most is that you do them. All. Every month.
Next is that you do them consistently (eg: A&B on the 10th; X&Y on the 15th etc).
Get into a pattern of missing or juggling payments and you'll end in trouble.
As for me it's pay on receipt.
I see no advantage to having an accounts payable process too
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
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
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.
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