Credit card payment habits

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Gryphon
Posts: 150
Joined: Sat May 07, 2016 11:43 am
Location: Missouri

Re: Credit card payment habits

Post by Gryphon » Sun Dec 22, 2019 8:51 pm

Pay in full every month, within a few days of receiving the email notification that there's a new statement.

DorothyB
Posts: 113
Joined: Wed Oct 17, 2012 6:17 pm

Re: Credit card payment habits

Post by DorothyB » Sun Dec 22, 2019 9:03 pm

I track my balances like a checking account so I know what I owe every week.

I pay the bills in full a few days before due date. I almost exclusively use my 3 USAA cards (one gives better rewards for gas & groceries, another for restaurants & fast food, and then I use the 3rd for pretty much everything else.

I go to the USAA website and pay from my linked checking account.

HawkeyePierce
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Location: Colorado

Re: Credit card payment habits

Post by HawkeyePierce » Sun Dec 22, 2019 9:10 pm

All my cards (>20 right now, yes I churn) are set to auto-pay the statement balance on the due date. All transactions are auto-imported into YNAB so I review them there.

atdharris
Posts: 431
Joined: Wed Jan 02, 2019 3:18 pm

Re: Credit card payment habits

Post by atdharris » Mon Dec 23, 2019 4:13 pm

I autopay on the statement due date. No real reason to pay it off weekly unless you want to report 0% utilization.

SpaghettiMonster
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Joined: Sun Oct 28, 2018 1:24 pm

Re: Credit card payment habits

Post by SpaghettiMonster » Mon Dec 23, 2019 4:16 pm

I pay about a week before the due date to keep my utilization rate low.

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Doom&Gloom
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Re: Credit card payment habits

Post by Doom&Gloom » Mon Dec 23, 2019 4:29 pm

Am I confused? I thought that to keep utilization low the payment for outstanding charges had to be made before the statement was cut rather than when the payment was due.

Jelloanddon
Posts: 102
Joined: Sat Oct 04, 2014 12:18 pm

Re: Credit card payment habits

Post by Jelloanddon » Mon Dec 23, 2019 8:16 pm

ARoseByAnyOtherName wrote:
Sun Dec 22, 2019 8:40 am
I pay my credit card balances off entirely once a week on the weekend.

This is unnecessary and likely atypical, and the only thing it does for me is make me feel better, but that it does so I do it.
I’m even “worse” - pay when charges show pending. I do this almost daily. Yes, too much time on my hands.

TravelGeek
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Joined: Sat Oct 25, 2014 3:23 pm

Re: Credit card payment habits

Post by TravelGeek » Tue Dec 24, 2019 11:40 am

Jelloanddon wrote:
Mon Dec 23, 2019 8:16 pm
I’m even “worse” - pay when charges show pending. I do this almost daily. Yes, too much time on my hands.
Why?

And what do you do with pending transactions that later post with a different amounts? (restaurant charges that don’t include the tip yet, hotels or car rental companies that block a certain amount of dollars that isn’t necessarily the final amount). Seems like way too much effort to keep this all straight. Every manual step (payment) introduces the opportunity for mistakes. I look at credit cards as a way to simplify my life (and earn some rewards), not to create busy work. :D

I review charges and schedule my payments for (due date - 2) when the statement closes. I keep a ledger in a spreadsheet that tracks the future balance of my checking account based on scheduled and expected payments, so I know when I have to move money from somewhere else (Vanguard, Fidelity) into my checking account. Savings account tied to checking (Ally) serves as overdraft buffer.

All credit cards are also configured to pay the minimum amount at due date, in case I am temporarily incapacitated and can’t schedule the actual balance payment.

Horsefly
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Location: Colorado, mostly

Re: Credit card payment habits

Post by Horsefly » Tue Dec 24, 2019 11:57 am

Doom&Gloom wrote:
Mon Dec 23, 2019 4:29 pm
Am I confused? I thought that to keep utilization low the payment for outstanding charges had to be made before the statement was cut rather than when the payment was due.
That is true. So if you for some reason need to maximize your credit score for some amount of time, you need to be watching your card balances and pay them down to zero or near zero a couple of days before the end of the statement period. I do this some of the time, but most of the time I have all my credit cards set to autopay the full balance.

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LilyFleur
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Re: Credit card payment habits

Post by LilyFleur » Tue Dec 24, 2019 1:53 pm

I have some small autopays set up so that my credit union sends about $100 to each credit card once a month so I don't ever have to pay a late fee. I recently set all three of my credit cards to be due on the same day of the month. I use Google calendar to remind me to go to the credit card websites to make the payments a few days before they are due.

Broken Man 1999
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Re: Credit card payment habits

Post by Broken Man 1999 » Tue Dec 24, 2019 1:56 pm

Jelloanddon wrote:
Mon Dec 23, 2019 8:16 pm
ARoseByAnyOtherName wrote:
Sun Dec 22, 2019 8:40 am
I pay my credit card balances off entirely once a week on the weekend.

This is unnecessary and likely atypical, and the only thing it does for me is make me feel better, but that it does so I do it.
I’m even “worse” - pay when charges show pending. I do this almost daily. Yes, too much time on my hands.
You do realize that sometimes "pending transactions" are errors? I cast a jaded eye at "pending transactions" I notice that aren't of my doing, and 99.99% of the time they don't make it into the "transactions" status.

At one time American Express would not take a report of a "pending transaction" you didn't recognize, you had to wait until it was a "transaction." No idea what AE does today.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain

Jelloanddon
Posts: 102
Joined: Sat Oct 04, 2014 12:18 pm

Re: Credit card payment habits

Post by Jelloanddon » Tue Dec 24, 2019 3:47 pm

Broken Man 1999 wrote:
Tue Dec 24, 2019 1:56 pm
Jelloanddon wrote:
Mon Dec 23, 2019 8:16 pm
ARoseByAnyOtherName wrote:
Sun Dec 22, 2019 8:40 am
I pay my credit card balances off entirely once a week on the weekend.

This is unnecessary and likely atypical, and the only thing it does for me is make me feel better, but that it does so I do it.
I’m even “worse” - pay when charges show pending. I do this almost daily. Yes, too much time on my hands.
You do realize that sometimes "pending transactions" are errors? I cast a jaded eye at "pending transactions" I notice that aren't of my doing, and 99.99% of the time they don't make it into the "transactions" status.

At one time American Express would not take a report of a "pending transaction" you didn't recognize, you had to wait until it was a "transaction." No idea what AE does today.

Broken Man 1999
I always recognize the charges so it hasn’t been an issue.

Jelloanddon
Posts: 102
Joined: Sat Oct 04, 2014 12:18 pm

Re: Credit card payment habits

Post by Jelloanddon » Tue Dec 24, 2019 3:53 pm

TravelGeek wrote:
Tue Dec 24, 2019 11:40 am
Jelloanddon wrote:
Mon Dec 23, 2019 8:16 pm
I’m even “worse” - pay when charges show pending. I do this almost daily. Yes, too much time on my hands.
Why?

And what do you do with pending transactions that later post with a different amounts? (restaurant charges that don’t include the tip yet, hotels or car rental companies that block a certain amount of dollars that isn’t necessarily the final amount). Seems like way too much effort to keep this all straight. Every manual step (payment) introduces the opportunity for mistakes. I look at credit cards as a way to simplify my life (and earn some rewards), not to create busy work. :D

I review charges and schedule my payments for (due date - 2) when the statement closes. I keep a ledger in a spreadsheet that tracks the future balance of my checking account based on scheduled and expected payments, so I know when I have to move money from somewhere else (Vanguard, Fidelity) into my checking account. Savings account tied to checking (Ally) serves as overdraft buffer.

All credit cards are also configured to pay the minimum amount at due date, in case I am temporarily incapacitated and can’t schedule the actual balance payment.
Yes, the pending charges from restaurants don’t include the tips and when they do show up, I pay them. Doesn’t bother me. Because I check my cards almost daily, I have been able to catch fraud charges. My checking account and charge card are from the same institution so it’s easy to transfer the monies over.

I’m sure no one is neurotic as me but it works for me.

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Sandtrap
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Re: Credit card payment habits

Post by Sandtrap » Tue Dec 24, 2019 4:18 pm

mtmingus wrote:
Sun Dec 22, 2019 8:34 am
Credit scores, most of us care, depend on credit utilization ratios (among others).
Do you

1) pay in full automatically every month as scheduled, or
2) pay when the balances show up on your accounts, or
3) other ways

?
Credit score is max.
Pay CC in full either when due or before.
Zero debt and zero monthly payments of any kind.

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LittleMaggieMae
Posts: 217
Joined: Mon Aug 12, 2019 9:06 pm

Re: Credit card payment habits

Post by LittleMaggieMae » Tue Dec 24, 2019 5:09 pm

For the "day to day" card - I always pay in full plus whatever balance is pending a couple days after the close date.
For my other cards (that do not have transactions hitting everyday (or atleast what feels like everyday) I pay in full (sometimes I'll pay whatever is pending/left - if I won't be using the card again for a few weeks or a quarter (because of reward %) usually a week or so before the "due date". I usually do these payments all at the same time - as that is how the close/due dates of the various cards align. :)

I tend to check my Credit Card balances every 2 weeks when I get paid.

I paid interest for a couple of cycles on a credit card balance back in the mid 1980's... that was the only CC interest I've ever paid.

bac
Posts: 79
Joined: Sun Apr 01, 2018 6:19 pm

Re: Credit card payment habits

Post by bac » Wed Dec 25, 2019 12:05 am

I usually pay each credit card manually shortly after the statement posts online (with statements from the same card issuer synchronized). I prefer to get it off my plate.

Occasionally I'll set payment of a large balance (i.e., more than $1000) for late in the grace period if I need a direct deposit to cover it.

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Michael Patrick
Posts: 127
Joined: Wed Dec 19, 2018 10:25 am
Location: Madison, WI

Re: Credit card payment habits

Post by Michael Patrick » Wed Dec 25, 2019 8:02 am

I don't use auto pay, I set up the payments manually to fire on the statement due date. I pay in full every month without fail.

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Cubicle
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Re: Credit card payment habits

Post by Cubicle » Wed Dec 25, 2019 11:21 am

Every weekend I bank bill pay my credit cards ~$1-2 dollars of the current balance including pending charges. It also gives me a chance to review all charges while they are no more than 7 days out of my mind. I have found erroneous charges this way & have had them reversed.

I also overpay a card if I want to make a big purchase on it, over the credit limit. Doesn't always work, but usually does if I call it in.
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MidwestMike
Posts: 95
Joined: Fri Jun 30, 2017 10:12 pm

Re: Credit card payment habits

Post by MidwestMike » Wed Dec 25, 2019 11:30 am

I only have one credit card which I use as much as possible to get the cash back. I check it daily. I pay the full balance automatically.

mouses
Posts: 4217
Joined: Sat Oct 24, 2015 12:24 am

Re: Credit card payment habits

Post by mouses » Wed Dec 25, 2019 5:39 pm

Planner01 wrote:
Sun Dec 22, 2019 2:07 pm
Pay it off every month as scheduled.

Did you know that when you make multiple payments (more than just one payment a week), you automatically get flagged for possible fraud? The bank internally places a watch on your account as someone who could be leveraging the lending system in an unintended way and eventually they could shut down the account. It doesn’t happen often but it can happen.

I used to work in that area of business.
What? What illegal thing could one be doing with this?

3504PIR
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Joined: Mon Jul 26, 2010 2:46 am

Re: Credit card payment habits

Post by 3504PIR » Wed Dec 25, 2019 5:49 pm

Pay in full at some point every month, usually 10 days before due date.

Interestingly, with no other loans other than my mortgage, my credit score has dropped over 100 points over the past year, which I discovered while refinancing the mortgage last week. No idea why other than I am not using available credit. Luckily it didn’t effect the refinancing, but my heart skipped a few beats when I heard my score. Planning to lock everything down once the mortgage refinancing is closed.

olliema
Posts: 34
Joined: Sun Mar 11, 2018 10:34 pm

Re: Credit card payment habits

Post by olliema » Wed Dec 25, 2019 9:52 pm

I pay 1 or 2 times per week.
I put as much on cards as I can.
Every day or so I quickly login to the credit card website to review my transactions and log them in my ledger.
Keeping them paid helps me keep my cash flow tight.

RudyS
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Joined: Tue Oct 27, 2015 10:11 am

Re: Credit card payment habits

Post by RudyS » Wed Dec 25, 2019 10:12 pm

Cheez-It Guy wrote:
Sun Dec 22, 2019 9:02 am
Autopay in full on statement due date. When bill comes out each month, I review charges, redeem cash back accrued, and then make sure I have enough in the checking account to cover the balance. If not, I arrange a transfer from money market. Simple.
same here.

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