Are multiple monthly credit card payments better?

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Dylan1982
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Are multiple monthly credit card payments better?

Postby Dylan1982 » Sat Mar 10, 2012 4:33 am

Sorry that I've been making a lot of threads, but I am trying to learn and trying to pay off my one credit card.

Now my question about making monthly payments is as follows... I read somewhere that if you make 2 monthly payments that are greater than or equal to your minium that it will fool or trick the interest on how you're being charged and more will be applied to the principal and will cut your credit card bill down some?

So for example lets say your minium monthly payment is $150 that is due the 20th of ever month. You pay $85 on the 1st of the month and $85 on the 15th of the month, for a total of 2 payments in a single month that equate to $170, that is $+20 more than the minium monthly payment.

What are the benefits of doing this?
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)


jeffysdad
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Postby jeffysdad » Sat Mar 10, 2012 5:49 am

Any benefit would be negligible to nonexistent. If you carry a balance, pay as much as you can every month by the due date. Paying earlier in the payment cycle might help with interest, but not really enough to worry about. The most important thing is to pay as much as you can on time every month.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

Dylan1982
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Posts: 323
Joined: Tue Mar 06, 2012 12:15 am
Location: Chicago

Postby Dylan1982 » Sat Mar 10, 2012 6:44 pm

jeffysdad wrote:Any benefit would be negligible to nonexistent. If you carry a balance, pay as much as you can every month by the due date. Paying earlier in the payment cycle might help with interest, but not really enough to worry about. The most important thing is to pay as much as you can on time every month.

With the article I read, the 'financial advisor' made it seem by paying multiple times in a month that it will trick the interest and you'll be able to pay it down faster.

Almost like a mortgage- you make half your mortgage payment the 1st of the month and the other half of the mortgage payment by the end of the month, more goes to the principal and it is supposed to knock of like 7 yrs on the back end of the loan.

So I was thinking that same thing applies to a credit card??
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)



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