Maxing out and paying off low limit cards?

For just about anything you want to get off your chest about credit cards.
4 posts
circle_k
Green Member
Green Member
 
Posts: 22
Joined: Tue Oct 23, 2012 8:28 am
Location: Kansas

Maxing out and paying off low limit cards?

Postby circle_k » Sat Oct 27, 2012 3:07 am

I have a question on recycling cards, I guess that's what I would call it. I know several people with low limit, toy or token limit cards. I'm talking about a $200 or $300 CL. By recycle I mean charging say $198 on a $200 and paying it off 3 or 4 times a month as opposed to say charging $25 and waiting until the bill cuts to pay it. I can't sleep because it keeps going through me head how creditors look at this. I doubt if it makes much difference on the credit scores, but I'm curious how it's looked at internally.


DavidNY
Centurion Member
Centurion Member
 
Posts: 1332
Joined: Tue Jul 05, 2011 12:28 pm
Location: New York

Postby DavidNY » Sat Oct 27, 2012 10:03 am

If you're losing sleep over your bank's credit card policies, it's time to stop using them,

You can get a secured card and set your own credit line.

circle_k
Green Member
Green Member
 
Posts: 22
Joined: Tue Oct 23, 2012 8:28 am
Location: Kansas

Postby circle_k » Sat Oct 27, 2012 6:04 pm

It's not me, I told someone they would be okay doing that, but now I'm thinking I might have given bad advise

432521
Centurion Member
Centurion Member
 
Posts: 379
Joined: Thu Apr 26, 2012 3:15 pm
Location: USA

Postby 432521 » Sat Oct 27, 2012 8:09 pm

From my understanding that It is fine and will not effect your score if you max out and make multiple payments in one billing cycle just make sure than before it closes that it is under the 10% utilization.

For example my bill closes on the 23rd of the month.
I buy a whole bunch a crap that month but my llmit is 500 bucks
On the first 1st I buy a new TV for 480, the next day I pay it off the next day
On the 5th of the month I buy a new camera for 450, I pay it off the next day
On the 10th I buy a new computer for 490, I pay it off the next day
So I went the whole month and charged close to 1500 on a card with a 500 limit. As long as my balance is 0 on lets say the 20th and I do not use it again until the 27th which is the next cycle I am fine and it will NOT affect my credit score negatively.
March 2011- Wellsfargo Cash Back College Card
May 2012- Chase Freedom
May 2012- Discover IT
August 2012- American Express Blue Cash Everyday



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests