When to pay

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karna68
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When to pay

Postby karna68 » Wed Jun 22, 2016 2:42 pm

Hello all. I just got one of those credit cards with outrageous fees to start to rebuild my credit. I plan on paying it off every month. My question is, do I need to wait for the bill to be cut before making the payment? Or can I charge something and immediately send a payment for what I spent? I'm thinking I probably need to wait for the bill but I just want to make sure. Thanks!


JonE
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Re: When to pay

Postby JonE » Wed Jun 22, 2016 8:20 pm

karna68 wrote:Hello all. I just got one of those credit cards with outrageous fees to start to rebuild my credit. I plan on paying it off every month. My question is, do I need to wait for the bill to be cut before making the payment? Or can I charge something and immediately send a payment for what I spent? I'm thinking I probably need to wait for the bill but I just want to make sure. Thanks!


You can really do either/or. I had a CreditOne card previously (don't ask!) and paid it every payday when I had the opportunity. It was only $300 so it wasn't that hard.
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takeshi
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Re: When to pay

Postby takeshi » Thu Jun 23, 2016 9:53 am

You can pay whenever works best for you as long as it fits within whatever restrictions your creditor may have. Some may not allow you to make a payment if you don't have a balance because the purchase transaction has not posted. Some restrict the number of payments one can make. You'd need to verify such things with your creditor.

Just make sure that every statement balance is paid in full by it's due date to avoid incurring debt & interest and to avoid losing your grace period.

Kevin86475391
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Re: When to pay

Postby Kevin86475391 » Thu Jun 23, 2016 7:04 pm

takeshi wrote:You can pay whenever works best for you as long as it fits within whatever restrictions your creditor may have. Some may not allow you to make a payment if you don't have a balance because the purchase transaction has not posted. Some restrict the number of payments one can make. You'd need to verify such things with your creditor.

Just make sure that every statement balance is paid in full by it's due date to avoid incurring debt & interest and to avoid losing your grace period.


Please correct me if I'm wrong, but don't these subprime cards like Credit One for instance not have a grace period to begin with?

For this reason, I quite agree that the sooner you pay off your balances the better. Depending on the terms of your card you may not have a grace period, in which case the sooner you can pay the balance the less interest you'll owe.

Tubpbs
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Re: When to pay

Postby Tubpbs » Thu Jun 23, 2016 7:19 pm

Kevin86475391 wrote:
takeshi wrote:You can pay whenever works best for you as long as it fits within whatever restrictions your creditor may have. Some may not allow you to make a payment if you don't have a balance because the purchase transaction has not posted. Some restrict the number of payments one can make. You'd need to verify such things with your creditor.

Just make sure that every statement balance is paid in full by it's due date to avoid incurring debt & interest and to avoid losing your grace period.


Please correct me if I'm wrong, but don't these subprime cards like Credit One for instance not have a grace period to begin with?

For this reason, I quite agree that the sooner you pay off your balances the better. Depending on the terms of your card you may not have a grace period, in which case the sooner you can pay the balance the less interest you'll owe.


I thought they all had to have at least 25 days or something like that. What happened with that?
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karna68
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Re: When to pay

Postby karna68 » Fri Jun 24, 2016 10:04 am

Tubpbs wrote:
I thought they all had to have at least 25 days or something like that. What happened with that?


Probably not with this type of credit card.

Thanks everyone, so charging something and paying it within the same billing cycle doesn't "cancel out" as if there was no activity on the account?

Bama87
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Re: When to pay

Postby Bama87 » Fri Jun 24, 2016 10:22 am

To the CC issuer, yes they will see the activity on your account. If you have a $0 balance when the billing period is over, then $0 will be reported to the credit bureaus, but I believe the CC issuer also reports if you have made on time payments or not the the bureaus at that time as well.

If you are rebuilding your credit, you will not reap the rewards from having your CC report $100 one time and paying it off one time. Just focus on using your card wisely and paying if off when you can for now. No reason the play the 8-10% utilization game at this point.

augiedog
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Re: When to pay

Postby augiedog » Sat Jun 25, 2016 4:32 pm

Bama87 wrote:If you are rebuilding your credit, you will not reap the rewards from having your CC report $100 one time and paying it off one time. Just focus on using your card wisely and paying if off when you can for now. No reason the play the 8-10% utilization game at this point.


I have to agree with you, Bama87.

Since you're rebuilding your credit, as long as you keep making on-time payments and at least the minimum, your credit line will grow, and you will be closer to 10-30% utilization. Keep this up, and your credit score will rebound in one or two years. It will take time, but time is the most important factor in credit scores.
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karna68
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Re: When to pay

Postby karna68 » Sun Jun 26, 2016 8:29 am

Well problem solved, it doesn't look like it will let me make a payment before the statement is generated.

Tubpbs
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Re: When to pay

Postby Tubpbs » Sun Jun 26, 2016 8:39 am

karna68 wrote:Well problem solved, it doesn't look like it will let me make a payment before the statement is generated.


That's ridiculous. It's possible it's only for the first payment, but given their business model, seems unlikely.
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