Question about paying a credit card early

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dimond_dj
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Question about paying a credit card early

Postby dimond_dj » Sun Mar 13, 2016 12:19 am

I received my shiny new credit card in the mail today, I didn't think it took long at all to get it. My application was approved on March 8 and I received my card on March 12, not too shabby...... They did have to do a manual review of my application and verify my information but then it was only a couple days for the approval.

Now for those who know about First National Bank Omaha, do they accept payments before the statement cuts? I had to start out with a secured card and I only have a $300 limit. I know with some cards you can charge $278 then pay it right away before the billing date so your not reported with a high utilization. Of course when you are building credit, you only charge what you can pay off easily. From what I can tell the card is only good to charge one small item per month then wait for the statement and pay it off.

At the bank they told me they consider you for a CLI without an additional security deposit after 6 months then with careful use I can get me deposit back in about a year and then I could get a respectable credit limit soon after that. I want to be careful not to mess that up.


Tubpbs
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Re: Question about paying a credit card early

Postby Tubpbs » Sun Mar 13, 2016 10:39 am

dimond_dj wrote:I received my shiny new credit card in the mail today, I didn't think it took long at all to get it. My application was approved on March 8 and I received my card on March 12, not too shabby...... They did have to do a manual review of my application and verify my information but then it was only a couple days for the approval.

Now for those who know about First National Bank Omaha, do they accept payments before the statement cuts? I had to start out with a secured card and I only have a $300 limit. I know with some cards you can charge $278 then pay it right away before the billing date so your not reported with a high utilization. Of course when you are building credit, you only charge what you can pay off easily. From what I can tell the card is only good to charge one small item per month then wait for the statement and pay it off.

At the bank they told me they consider you for a CLI without an additional security deposit after 6 months then with careful use I can get me deposit back in about a year and then I could get a respectable credit limit soon after that. I want to be careful not to mess that up.


Just call the number on the back of the card and ask them. I'd also ask what is the quickest way to have the payment process.

I would assume the answer is yes though. There would be no good reason for them not to accept a payment before the statement cuts, but you never know.
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dimond_dj
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Re: Question about paying a credit card early

Postby dimond_dj » Sun Mar 13, 2016 8:56 pm

They said I can pay online 30 days in advance but I couldn't schedule a payment that exceeds the balance due, I'm going to assume I can purchase a cell phone for $250 then pay it off as soon as it posts. It would make the card a little more useful if I could load it up and pay it off, then put like a $10 charge on it so a balance reports but utilization is low.

I would have to think the bank would like it better if I used the card more rather than just charge a $10 item each month and put the card away. Someone on another forum suggested that I use it for one small thing like a monthly nexflix subscription but never carry the physcial card. Somebody else suggested that I run up the bill and pay it off a couple times a month so I shows the bank I intend to use their card. They said they would consider me for a CLI without an additional deposit after 6 months and would consider converting the card to unsecured after a year. If they bumped up my credit limit when that happens it could be a fairly decent card.

So far so good, I picked up a few groceries tonight and used this card instead of my debit card. The transaction went through quickly with no problems. I guess I'll let everyone know how it works when I make payments.

Tubpbs
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Re: Question about paying a credit card early

Postby Tubpbs » Sun Mar 13, 2016 10:27 pm

dimond_dj wrote:They said I can pay online 30 days in advance but I couldn't schedule a payment that exceeds the balance due, I'm going to assume I can purchase a cell phone for $250 then pay it off as soon as it posts. It would make the card a little more useful if I could load it up and pay it off, then put like a $10 charge on it so a balance reports but utilization is low.

I would have to think the bank would like it better if I used the card more rather than just charge a $10 item each month and put the card away. Someone on another forum suggested that I use it for one small thing like a monthly nexflix subscription but never carry the physcial card. Somebody else suggested that I run up the bill and pay it off a couple times a month so I shows the bank I intend to use their card. They said they would consider me for a CLI without an additional deposit after 6 months and would consider converting the card to unsecured after a year. If they bumped up my credit limit when that happens it could be a fairly decent card.

So far so good, I picked up a few groceries tonight and used this card instead of my debit card. The transaction went through quickly with no problems. I guess I'll let everyone know how it works when I make payments.


Yea. I think you could do it either way. It's a bit pain in the ass to spend a lot of money on the card and make sure you pay it before the statement cuts and all that, but it may be worth it. As far as maxing and paying several times a month... That depends first and foremost on how much money you would otherwise be spending on the card regularly and, again, how much you want to deal with cycling the card out each month. Maybe try one or two cycles of each and see what you prefer. I don't think it will make that much of a difference if you spend a ton of money or a little for the first series of months. They just want to see that you pay what you charge and do what you say whether it's $10 or $1000 a month. That's my opinion.
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kdm31091
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Re: Question about paying a credit card early

Postby kdm31091 » Mon Mar 14, 2016 8:30 am

The different "strategies" you hear are of course just opinions/anecdotes. I don't think it makes sense to just use it for netflix and not carry the card unless you are not going to pay the bill BEFORE the statement comes -- because in this case, with such a low limit, if you rack up much in everyday charges, your utilization is going to look poor.

I think you shouldn't obsess about a strategy - just use the card every month for whatever you can pay off before the statement comes. Show usage and build history. The rest will fall into place over time. As the limit (hopefully) grows over time, it will become less important to pay before the statement.

takeshi
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Re: Question about paying a credit card early

Postby takeshi » Mon Mar 14, 2016 8:36 am

dimond_dj wrote:Now for those who know about First National Bank Omaha, do they accept payments before the statement cuts?

Any creditor does.

dimond_dj wrote:I would have to think the bank would like it better if I used the card more rather than just charge a $10 item each month and put the card away. Someone on another forum suggested that I use it for one small thing like a monthly nexflix subscription but never carry the physcial card. Somebody else suggested that I run up the bill and pay it off a couple times a month so I shows the bank I intend to use their card. They said they would consider me for a CLI without an additional deposit after 6 months and would consider converting the card to unsecured after a year. If they bumped up my credit limit when that happens it could be a fairly decent card.

It really doesn't matter either way. A CLI will be determined based on what your credit profile and income qualify for. Don't rely on usage or anything about the one account one its own. Your entire credit profile matters.

dimond_dj wrote:Of course when you are building credit, you only charge what you can pay off easily.

That applies to everyone -- not just builders. Don't spend what you don't have.



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