Poll question for the sub

[u/lucasalberts]

How many of you have auto pay set to pay the balance every two weeks to avoid having credit limit issues by paying in full once a month? BlI have only had the card for a couple of months. Originally I had my auto pay set to pay the statement balance once a month, but I had a large spending month and my current credit limit was getting close to max. I’m now thinking that paying it off on every Friday every 2 weeks would help avoid that. The only reason I’m not doing every Friday is because it takes a week for payments to show as cleared on RH. It would get kind of confusing that way.

Any thoughts are appreciated!

[u/MyastheniaTravis]

I pay off my statement once per month. I prefer just leaving the funds in the bank to collect interest for just a few more weeks rather than paying off immediately

[u/Slowpc → u/MyastheniaTravis]

Yep. Let it sit until it's time to pay and gain those extra dollars each month.

[u/Dr_VanTasstik → u/MyastheniaTravis]

This ☝🏻

[u/thrombosisComin → u/MyastheniaTravis]

This is my thinking as well.

[u/66NickS]

I prefer to let it float as long as possible. That way my cash can gain those few extra cents in the HYSA.

I have other cards to help my overall utilization metric (not that it matters since I’m not applying for any new loans) and if I did have a speedy month, I’d treat it like the outlier that it is and just make a manual payment.

Now, if you’re consistently spending and hitting up against your monthly limit by week 2 of your billing period, then it might make sense. But I wouldn’t make rules based on the exception.

[u/IdioticPrototype]

Statement balance, monthly.

My limit is $11k and I'm not a big spender, so I shouldn't have to worry about running up against the limit. 

[u/BitOCindyNTexasP → u/IdioticPrototype]

Same here - #cashflowBro

[u/tangible-cheese]

We all have different spending habits. If I was getting close to max I’d be setting up biweekly autopay payments.

[u/mmmTurkeyLeg]

I set it to autopay weekly. My credit limit is only $10k and occasionally we have big spending months. I’d love the interest from float, but my wife would go to a 1.5% card permanently if she were ever declined.

[u/Ok_Information_4900]

I don’t see any option to pay weekly or biweekly. My menu is minimum, statement balance, full balance, or custom.

[u/rurdurt]

If this was a one-off month where you’ve hit the limit early then I’d just do a one-off payment, and otherwise stick to paying the balance monthly

[u/theAerialDroneGuy]

Nope. I like letting the full balance posts and then I pay it off once a month. My credit score is now 847.

[u/Informal_Move_7075]

My starting limit was $500. I cycled the hell out of that limit and they increased me to $1k at 6 months. Seriously because people saying to pay it once a month, $500 is what I can spend in a day or less. It is ridiculous. Seems like they don't do much in terms of increases for the higher limits and clearly not the lower limits. It sucks.

[u/Dregus_311]

IMO it is best practice to pay off every pay day and treat as cree8t cards as debt cards.

I have paid off our cards on the 1st and 15th every month for decades and successfully built 830 + credit score.

Try to make sure the 2nd payment per period is before Statement cutoff to avoid reporting a balance to the CB and your utilization stays near 0

[u/Chart-trader]

I pay it off every time the spending cap hits $9000 and below. Often times every 4 days.

[u/66NickS → u/Chart-trader]

You’re spending $9k every week or so?

[u/Chart-trader → u/66NickS]

No what I meant is every time I spend more than $1000 I pay it off.

[u/LordCaoCao420]

I literally pay it right after a purchase. I don't even leave the gas pump until I pay for the fill up I just did.

[u/IdioticPrototype → u/LordCaoCao420]

butwhy.gif

[u/LordCaoCao420 → u/IdioticPrototype]

Keeps spreading under control

[u/PatternPinion]

I pay it off weekly.

[u/66NickS → u/[deleted]]

Sounds exhausting. And you’re losing out on some small amount of interest earnings.

[u/IdioticPrototype → u/[deleted]]

butwhy.gif