I'm back! Worked on building credit and now have 2 reward cards

For just about anything you want to get off your chest about credit cards.
8 posts
PowerMan572
Gold Member
Gold Member
 
Posts: 48
Joined: Sun Feb 09, 2014 10:27 pm
Location: USA, Minnesota

I'm back! Worked on building credit and now have 2 reward cards

Postby PowerMan572 » Sun Feb 09, 2014 10:52 pm

Long story short, I had 3 cards report to my credit as "charged off" because I was young a stupid.

I waited to apply for new credit cards because A.) I wouldn't get approved and B.) I wanted to graduate from college with my Bachelor's in Information Technology and have a stable job. I've now accomplished some personal life goals and I feel like I'm a more mature adult now (I'm a 27 yr. old male.)

For the last 2 years I have had a few small store credit cards like Best Buy, Macy's and The Buckle to help build my credit slowly. I even opened a Capital One secured credit card with a $200 deposit. That Capital One credit card did wonders! It helped increase my credit score and within the last week I've finally been able to get approved for TWO rewards credit cards!

They are:
1. Barclaycard Arrival ($1,200 limit.)
2. Capital One Venture ($5,000 limit.)

The Barclaycard I am excited to get because of the 40k mile signup bonus. The Capital One Venture I was very surprise to be approved for $5k, but after thinking about it I probably wouldn't have been approved for so much had I not opened a secured credit card with them 22 months ago (which has now been closed.) I've never had credit cards before that offer signup bonuses.

Anyway, that's my story! I do have a question though. I definitely learned my lesson regarding "don't buy something unless you have the money for it." So, is it OK to submit payments to the credit card company BEFORE the statement even arrives? So for instance, I got the Barclaycard and I've already charged $900 to it. Normally I would have used my bank's debit card, but obviously I want to start collecting miles now. As soon as that charge hits the credit card in a few days, can I submit a payment to be taken out of my bank account since I have the money? Does this defeat the purpose of building credit, or will it still report as effectively to my credit report?

I'm a freak about paying things off ASAP and have it taken out of my bank account. Again, I've learned my lesson.


Thanks!


samhradh
Centurion Member
Centurion Member
 
Posts: 388
Joined: Thu Nov 21, 2013 1:13 pm
Location: United States

Postby samhradh » Mon Feb 10, 2014 12:37 pm

PowerMan572 wrote:So, is it OK to submit payments to the credit card company BEFORE the statement even arrives?
Yes.
PowerMan572 wrote:Does this defeat the purpose of building credit, or will it still report as effectively to my credit report?
It does not defeat the purpose to pre pay but be aware of two things: some banks allow only X amount of payments per cycle and it is recommend to let a small percent of your balance report each month (5-10%).
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

User avatar
Vattené
Centurion Member
Centurion Member
 
Posts: 1157
Joined: Sun Jan 26, 2014 3:55 am
Location: US

Postby Vattené » Mon Feb 10, 2014 3:07 pm

This has been my strategy, too. I usually pay in full each payday...mainly because I'm worried about forgetting. Is there a way to get that 5-10% of your balance to report each month or do you just kind of have to guess when it will be reported?

Congrats on the cards, improved credit, and lesson learned (though it sounds like it was an expensive one).
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

PowerMan572
Gold Member
Gold Member
 
Posts: 48
Joined: Sun Feb 09, 2014 10:27 pm
Location: USA, Minnesota

Postby PowerMan572 » Mon Feb 10, 2014 4:18 pm

Barclaycard does not offer early payments!! I just tried logging into my account to submit a big payment since I've already maxed out the card in cell phone purchases for my eBay store and it said I can't make a payment when my balance due is $0 or something like that :-(

Well at least I know I'll be getting the max miles each month. Not too difficult to max out $1,200 for my online store.

Hopefully when I get my Capital One I can submit payments early if I need to.

samhradh
Centurion Member
Centurion Member
 
Posts: 388
Joined: Thu Nov 21, 2013 1:13 pm
Location: United States

Postby samhradh » Mon Feb 10, 2014 6:02 pm

Yes: Only pay off your balance before the due date for 95-90% of the charges. By the way, I've never done this and its affect vs. effort are debatable.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

User avatar
Vattené
Centurion Member
Centurion Member
 
Posts: 1157
Joined: Sun Jan 26, 2014 3:55 am
Location: US

Postby Vattené » Mon Feb 10, 2014 6:07 pm

samhradh wrote:Yes: Only pay off your balance before the due date for 95-90% of the charges. By the way, I've never done this and its affect vs. effort are debatable.
I see, so balances are typically reported right at the due date. I did not know that. Do you think this is worth paying the interest, though?

I've always paid in full. My credit score isn't stellar (739), but I like to think this is largely because I have a pretty thin credit profile (I recently graduated college, so my AAoA is pretty low...plus the only kind of credit history I have is for credit cards).
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

samhradh
Centurion Member
Centurion Member
 
Posts: 388
Joined: Thu Nov 21, 2013 1:13 pm
Location: United States

Postby samhradh » Mon Feb 10, 2014 6:15 pm

No, balances are reported when your statement is delivered. Most companies then give you almost a month to pay the balance. It you've paid most of your balance down when the statement is cut you're then reporting lower utilization of credit than you actually had during that cycle.

Personally this is not something I do but I have a pristine file and high FICO so I'm not actively concerned with needing to raise my score.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

User avatar
Vattené
Centurion Member
Centurion Member
 
Posts: 1157
Joined: Sun Jan 26, 2014 3:55 am
Location: US

Postby Vattené » Mon Feb 10, 2014 6:28 pm

Of course. I apologize, I totally misunderstood you when you said "due date," conflating it with the balance reported!
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests