Is multiple payments bad?

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TXviking
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Is multiple payments bad?

Postby TXviking » Tue Apr 19, 2016 10:25 am

I often wind up making two "in-full" payments on my credit cards every month. I don't really need to -- I don't use anywhere near my limits -- but seeing that $0 balance satisfies my OCD.

I am aware that reporting zero on everything is sub-optimal for my credit, so I do try to keep a couple hundred dollars showing on at least one card at reporting time, even if I pay it off before interest starts accruing.

Should I be limiting myself to one payment per card per month, or does it not matter?


kdm31091
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Re: Is multiple payments bad?

Postby kdm31091 » Tue Apr 19, 2016 10:57 am

TXviking wrote:I often wind up making two "in-full" payments on my credit cards every month. I don't really need to -- I don't use anywhere near my limits -- but seeing that $0 balance satisfies my OCD.

I am aware that reporting zero on everything is sub-optimal for my credit, so I do try to keep a couple hundred dollars showing on at least one card at reporting time, even if I pay it off before interest starts accruing.

Should I be limiting myself to one payment per card per month, or does it not matter?


I don't think it matters. Even if all cards report zero, yes, you take a hit but the hit is temporary just like everything else with utilization.

IMO, not worth stressing over. As long as you're paying your bills, that's the main thing. Whichever process/system you want to use is up to you, and you should do what works for you because it's very unlikely to matter in any practical way.

Elijahmex
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Re: Is multiple payments bad?

Postby Elijahmex » Tue Apr 19, 2016 11:02 am

Back when I only had 1 CC, I would make 2 payments/month and a CapOne CSR told me I was doing great and to continue making payments so there is nothing wrong making several payments. Now I just PIF at the end of the month bc I have more CCs to manage and by closing date a very small amount is reported and all is good.

Hope this helps
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thom02099
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Re: Is multiple payments bad?

Postby thom02099 » Tue Apr 19, 2016 11:20 am

To answer your very specific question, no. Making multiple payments is not bad. "Bad" would indicate some sort of negative result from the action. Anecdotally, there's LOTS of folks who do this with no negative results, especially for folks who have one of the AMEX charge cards and make multiple payments. I'm one of those, also OCD about my charge cards showing a balance, so I do this regularly. And have for many, many years. This is something I've done, with charge and credit cards, for well over 40 years and no negative consequences.

One minor caveat. Some card issuers may limit the number of payments one can make in a month, or statement cycle. Wells Fargo is one of them. Limit is 2 payments within a cycle period, if paying on line with their system. A payment can always be pushed through. This is not, however, bad. Simply somewhat inconvenient.
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Elijahmex
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Re: Is multiple payments bad?

Postby Elijahmex » Tue Apr 19, 2016 11:30 am

thom02099 wrote:To answer your very specific question, no. Making multiple payments is not bad. "Bad" would indicate some sort of negative result from the action. Anecdotally, there's LOTS of folks who do this with no negative results, especially for folks who have one of the AMEX charge cards and make multiple payments. I'm one of those, also OCD about my charge cards showing a balance, so I do this regularly. And have for many, many years. This is something I've done, with charge and credit cards, for well over 40 years and no negative consequences.

One minor caveat. Some card issuers may limit the number of payments one can make in a month, or statement cycle. Wells Fargo is one of them. Limit is 2 payments within a cycle period, if paying on line with their system. A payment can always be pushed through. This is not, however, bad. Simply somewhat inconvenient.


What is the point of that? Why would Wells Fargo limit the amount of payments one can make?
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thom02099
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Re: Is multiple payments bad?

Postby thom02099 » Tue Apr 19, 2016 11:35 am

Elijahmex wrote:
thom02099 wrote:To answer your very specific question, no. Making multiple payments is not bad. "Bad" would indicate some sort of negative result from the action. Anecdotally, there's LOTS of folks who do this with no negative results, especially for folks who have one of the AMEX charge cards and make multiple payments. I'm one of those, also OCD about my charge cards showing a balance, so I do this regularly. And have for many, many years. This is something I've done, with charge and credit cards, for well over 40 years and no negative consequences.

One minor caveat. Some card issuers may limit the number of payments one can make in a month, or statement cycle. Wells Fargo is one of them. Limit is 2 payments within a cycle period, if paying on line with their system. A payment can always be pushed through. This is not, however, bad. Simply somewhat inconvenient.


What is the point of that? Why would Wells Fargo limit the amount of payments one can make?


Good Question. I have no idea. I ran across this with one of my WF cards when I had large expenses on it and wanted to pay multiple times. Their response was "that's the way our system is set up". Certainly not a good answer, and an antiquated way of doing things. Ended up pushing payments through for future transactions, and now I limit its usage. It will soon be a retired card.
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TXviking
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Re: Is multiple payments bad?

Postby TXviking » Tue Apr 19, 2016 12:03 pm

I wouldn't bank with Wells Fargo if they were the last bank on Earth, so I don't have to worry about that one.

I'd read on another forum that multiple payments could be bad because they could be a sign of "manufactured spending" to earn points (which is not a game I want to play, for the record.) In that case, however, it seems to involve people who basically max out their credit line, pay it off and max it out again multiple times per statement cycle.

I religiously keep my utilization below 10% on all my cards, and I pay all balances in full every month. I figured I was in good shape, but always good to have confirmation -- thanks for the info! :cheers:

Kevin86475391
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Re: Is multiple payments bad?

Postby Kevin86475391 » Tue Apr 19, 2016 12:24 pm

I PIF weekly, sometimes a second time in a week, so I usually have about 4 or 5 payments per cycle. Like you I don't need to in terms of credit limits, my balances rarely reach 2 or 3% utilization before I PIF; I just like to keep stuff zeroed out too. Plus, for me it helps me keep track of spending, especially since I also tend to use different cards for different categories (partially for rewards, but again mostly because that's just how I like to do it). So as soon as I log in I know right away if I'm spending too much on a given type of expense. Sure, I could wait till the end of the month, but I feel more on top of it doing it weekly.

Anyway, I've been doing this for years and have excellent Fico 8s, so it doesn't seem to be a problem.

takeshi
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Re: Is multiple payments bad?

Postby takeshi » Tue Apr 19, 2016 2:51 pm

TXviking wrote:I'd read on another forum that multiple payments could be bad because they could be a sign of "manufactured spending" to earn points (which is not a game I want to play, for the record.) In that case, however, it seems to involve people who basically max out their credit line, pay it off and max it out again multiple times per statement cycle.

A creditor looking for signs of MS is going to consider more than just number of payments on its own. Do what works for you and don't worry about making 2 payments per cycle.

If there was a negative impact to what you were doing wouldn't you see the effect?

TXviking wrote:but seeing that $0 balance satisfies my OCD.

Obsessive != OCD despite how often people misuse OCD.

macuserman
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Re: Is multiple payments bad?

Postby macuserman » Tue Apr 19, 2016 7:41 pm

takeshi wrote:Obsessive != OCD despite how often people misuse OCD.


You're not a programmer are you? :)



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