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Multiple Credit Card Payments vs Autopay… I'm Nuts

Home Personal Finance and Budgeting Multiple Credit Card Payments vs Autopay… I'm Nuts

  • Craigy Craigy 
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    For as long as I can remember, I have been in the habit of logging on and paying off my credit card balance, sometimes multiple times a month.  I know it helps the credit score to have a lower balance and lower utilization, but mostly it’s just because I like to see that zero balance.

    I know that this is a huge waste of time, and that I should just set it to autopay, and think about this once a month when I get the statement instead of all the time.   Plus it would let me keep my money rolling around in my account for an extra month or so while I get them to float my last month’s spending for free during the grace period.

    But I can’t help myself and this urge to pay my balance is killing me.   😆

    Obviously this really doesn’t matter either way from a financial standpoint.  Just wondering, what do y’all do?  Assuming of course you a) use credit cards and b) don’t carry a balance/pay interest.

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    #155789 Reply
    Avatar hightower 
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    Status: Physician
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    Joined: 12/07/2016

    I do the same thing as you.  Every time I get paid, I usually erase the entire credit card balance.  It kind of drives me nuts to leave a balance on there if I don’t have to.  I’d rather see a zero at the end of each billing cycle than an annoying $1,800 or whatever.  Essentially, from a behavioral point of view, it’s probably better to pay as you go anyway.  That way, you’re truly using your credit card as a cash equivalent.  You’re more aware of how much you’re spending and you see your checking account balance dwindle each time you swipe your card.

    #155796 Reply
    Liked by Craigy
    Avatar Peds 
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    Joined: 01/08/2016

    autopay.

    you can still be psycho crazy and pay it off as often as you like.

    and it takes away the chance you mess up. ive never had a late payment, and never will.

    #155797 Reply
    Avatar jhwkr542 
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    Joined: 02/15/2016

    Autopay but then manual pay the balance when I get the email that my monthly statement is ready. I also take the cash back then too

    #155800 Reply
    Liked by Craigy, AlexxT
    Avatar AlexxT 
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    Autopay but then manual pay the balance when I get the email that my monthly statement is ready. I also take the cash back then too

    Click to expand…

    This .

    I autopay, but I can see why you might want to pay it off sooner.  I have been tempted to do that on occasion.  So put it on autopay and pay it off sooner if you prefer.

    Then, if you want to try something dangerous and daring, wait a few days before paying it off and see how it feels.   😉

    #155803 Reply
    Liked by Craigy
    Craigy Craigy 
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    autopay.

    you can still be psycho crazy and pay it off as often as you like.

    and it takes away the chance you mess up. ive never had a late payment, and never will.

    Click to expand…

    I’ve got the autopay set, but no automatic payments are ever made.   😆

    I have finally allowed myself to set it and forget it on my amazon account, but that’s only a couple hundred per month.

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    #155804 Reply
    DMFA DMFA 
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    Joined: 06/24/2016

    I like having a $0 statement balance by paying the full balance on the statement closing day.  Every now and then a small charge will poke its nose in there and I end up with a $100 balance on a tens-of-thousands limit.  Whatever.  I doubt this has any substantial effect on my credit score, but I like the way it looks.

    I leave the auto-pay on minimum payment due just in case I somehow get out of sync.

    "I like money." - Frito Pendejo (Idiocracy)

    [Not a financial professional (yet), lawyer, or employee of The White Coat Investor]

    #155808 Reply
    Liked by Craigy
    Avatar AlexxT 
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    I doubt this has any substantial effect on my credit score, but I like the way it looks.

    Click to expand…

    I have been following my credit score on Credit Karma, and also via my credit card apps.  My score seems to fluctuate by around 10 to 15 points based on how much I owe.  The difference is only a few thousand and around 1% of my limit, but it does seem to matter.  If I were going to apply for a loan, I would keep the balances at zero for a few months prior to borrowing.

    #155820 Reply
    Liked by Craigy
    Craigy Craigy 
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    I doubt this has any substantial effect on my credit score, but I like the way it looks. 

    Click to expand…

    I have been following my credit score on Credit Karma, and also via my credit card apps.  My score seems to fluctuate by around 10 to 15 points based on how much I owe.  The difference is only a few thousand and around 1% of my limit, but it does seem to matter.  If I were going to apply for a loan, I would keep the balances at zero for a few months prior to borrowing.

    Click to expand…

    This is my experience as well.

    I doubt that, e.g., an 816 vs an 831 score is going to make much of a difference.  But if someone has relatively young credit it could have a substantial effect on rates.

    On the other end, requesting higher credit limit can help keep that utilization low too.

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    #155821 Reply
    Avatar Peds 
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    Joined: 01/08/2016

    autopay.

    you can still be psycho crazy and pay it off as often as you like.

    and it takes away the chance you mess up. ive never had a late payment, and never will.

    Click to expand…

    I’ve got the autopay set, but no automatic payments are ever made.   ?

    I have finally allowed myself to set it and forget it on my amazon account, but that’s only a couple hundred per month.

    Click to expand…

    ? good thing none of that matters.

    #155822 Reply
    TechCash TechCash 
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    Joined: 09/07/2018

    I’d love to see the CC companies let you do the following;

    1. Autopay a specific amount on a certain date each month (midway to the due date)
      AND
    2. Autopay the balance on the due date

    None of the major ones let you do that, I’ve asked.

    #155835 Reply
    Liked by Craigy
    Avatar Bmac 
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    I must admit I don’t understand this mentality at all. Beyond any points/cash back, the whole convenience of having a credit card is being able to pay just once a month. How does it matter if your account carries a balance if you pay it off in full once a month when due? Provided one is not overspending and thus unable to pay off. I hate debt as much as the next person, but I don’t really consider my credit card balance as debt since I’ve never not paid the balance in full.

    ACN ACN 
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    Status: Physician
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    You guys are crazy.  Multiple payments, manual payments…

    Everything (and i mean everything), is on AUTOPAY.  I have a WORD document that tracks all our autopays and what they are linked to.  Because the biggest problem, is when a CC## gets stolen, I have to change those autopays, but it’s easy with the WORD document.

    My wife used to log on to her personal credit card 3-4 times a month and pay the balance before she met me. =D

     

    I use personal capital extensively, logging on multiple times per week, so I see ALL CC transactions and this way I can catch any unauthorized payments.

    If you're ever having a bad day, just remember in 1976 Ronald Wayne sold his 10% stake in Apple for $2,300.

    #155840 Reply
    Avatar StarTrekDoc 
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    OCD of Ramsey theory.

    Autopay. Set and forget. For those carrying cash amounts shouldn’t have to ever check on this coupled with direct deposit.

    #155852 Reply
    Liked by Craigy
    TechCash TechCash 
    Participant
    Status: Other Professional
    Posts: 13
    Joined: 09/07/2018

    I must admit I don’t understand this mentality at all. Beyond any points/cash back, the whole convenience of having a credit card is being able to pay just once a month. How does it matter if your account carries a balance if you pay it off in full once a month when due? Provided one is not overspending and thus unable to pay off. I hate debt as much as the next person, but I don’t really consider my credit card balance as debt since I’ve never not paid the balance in full.

    Click to expand…

    Just because you don’t understand the mentality doesn’t make it invalid, or crazy as another member said. I’m all for point counterpoint discussions, but being dismissive isn’t the vibe I’ve seen in this forum so far. I’m fairly new here, so maybe I’m just overly optimistic in hoping this forum is different.

    #155854 Reply
    Liked by Craigy

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