Paying Credit Card Before Statement Closes

[sl11213]

Someone mentioned to me that "the banks" don't like when you pay your balance before the statement closes?
Is that true?
Good, Bad, or no difference?
Thanks

[Crazy About Cars]

Someone mentioned to me that "the banks" don't like when you pay your balance before the statement closes?
Is that true?
Good, Bad, or no difference?
Thanks

AFAIK its made up. Its no difference when you pay unless your credit utilization is high so it should be paid before the statement closes.

[DP7]

AFAIK its made up. Its no difference when you pay unless your credit utilization is high so it should be paid before the statement closes.

It's not made up. The talk about it on DDF as negative is generally if you effectively raise your CL by paying early ( Charge 4k on a 5k CL, pay it off before close, then charge another 4k) it may cause and FR or AA.

[zek]

It's not made up. The talk about it on DDF as negative is generally if you effectively raise your CL by paying early ( Charge 4k on a 5k CL, pay it off before close, then charge another 4k) it may cause and FR or AA.

That's ridiculous. You are not effectively raising your credit limit because the most the CC is lending you is 5k at one time.  Credit is the amount extended to you by the CC company (ie: the risk that they are taking). They are never going to be extending more than 5k no matter how often you pay.
Unbeleivable that this needs to be explained.

[bubbles]

That's ridiculous. You are not effectively raising your credit limit because the most the CC is lending you is 5k at one time.  Credit is the amount extended to you by the CC company (ie: the risk that they are taking). They are never going to be extending more than 5k no matter how often you pay.
Unbeleivable that this needs to be explained.

So you mean for someone making $5k a month, there isn't a bigger risk for them to not get their money back with someone who spends $5k pays it back and spends another $5k, over someone who just spends $5k?

I'm so sorry that I need this explained to me.

[DP7]

That's ridiculous. You are not effectively raising your credit limit because the most the CC is lending you is 5k at one time.  Credit is the amount extended to you by the CC company (ie: the risk that they are taking). They are never going to be extending more than 5k no matter how often you pay.
Unbeleivable that this needs to be explained.

What I wrote is what I believe was recently mentioned in the Amex F/R thread.

[zek]

So you mean for someone making $5k a month there isn't a bigger risk for them to not get their money back with someone who spends $5k pays it back and spends another $5k over someone who just spends $5k?

I'm so sorry that I need this explained to me.

you are correct (took me a few times reading this to understand what you wrote)

[zek]

What I wrote is what I believe was recently mentioned in the Amex F/R thread.

I don't know which post you are referring to, but I would be very skeptical of anyone who told me that Amex considers it a risk when card holders pay their balance off early.  The risk may be that they keep spending 4k on a 5k limit, but not the early payoff factor.

[DP7]

I don't know which post you are referring to, but I would be very skeptical of anyone who told me that Amex considers it a risk when card holders pay their balance off early.  The risk may be that they keep spending 4k on a 5k limit, but not the early payoff factor.

Pretty sure that's what I wrote.

[PETERP]

I don't know which post you are referring to, but I would be very skeptical of anyone who told me that Amex considers it a risk when card holders pay their balance off early.  The risk may be that they keep spending 4k on a 5k limit, but not the early payoff factor.

I have been paying Amex early for over 10 years . I pay when I have the time , I always
Have the money . I have had over 8 Amex cards at a time N.P.

[compddd]

It's not made up. The talk about it on DDF as negative is generally if you effectively raise your CL by paying early ( Charge 4k on a 5k CL, pay it off before close, then charge another 4k) it may cause and FR or AA.

Pure rubbish. They only get pissed if you pre-pay and then start charging.

[DP7]

Pure rubbish. They only get pissed if you pre-pay and then start charging.

Could be. Wasn't sure if the other times it was mentioned was to be understood how I said it or how you were saying it.

[noturbizniss]

What I wrote is what I believe was recently mentioned in the Amex F/R thread.

Breathing is a F/R risk....

[outsider]

Amex afaik encourages prepaying wheras chase is against it, i have had numerous calls with chase regarding an aa and they told me clearly (lending services) that prepaying and paying again is a "internal flag" (as opposed to high spending/limits/debt/hard pulls on your credit report)

They said that you are effectively giving yourself a hight credit line then they gave you.

If ur cl is 5k and u max it out and pay and then charge $500 you end up giving urself a $5500 limit that month.


I did plenty of research on many forums regarding chase aa and almost all cases included prepaying.

From people that I personally know who have been aa'd by chase all of them had high spending together with prepaying (some prepaid and charged more and sone did nit)

[TC610]

Breathing is a F/R risk....

It's been reported multiple times that sneezing is a trigger.
One time I sneezed and a few minutes later I got a call from AMEX and had to go through a mini-FR.

[aryeh1]

If I used up 95% of my credit line on chase biz card , should I pay now even though plan to put a few more dollars?

[ckmk47]

If I used up 95% of my credit line on chase biz card , should I pay now even though plan to put a few more dollars?

Spending on business cards is not reported to the credit agencies, so there's no benefit to paying it off early.  If there's a down side (possible A/A trigger) then certainly don't.

http://www.dansdeals.com/archives/25391

[smaxber]

Amex afaik encourages prepaying wheras chase is against it, i have had numerous calls with chase regarding an aa and they told me clearly (lending services) that prepaying and paying again is a "internal flag" (as opposed to high spending/limits/debt/hard pulls on your credit report)

They said that you are effectively giving yourself a hight credit line then they gave you.

If ur cl is 5k and u max it out and pay and then charge $500 you end up giving urself a $5500 limit that month.


I did plenty of research on many forums regarding chase aa and almost all cases included prepaying.

From people that I personally know who have been aa'd by chase all of them had high spending together with prepaying (some prepaid and charged more and sone did nit)

So If chase gives you a low CL be of lack of credit history youre saying that by paying the bill off multiple times in a month is a trigger? Maybe they should just increase since they see you can pay it...

[ckmk47]

So If chase gives you a low CL be of lack of credit history youre saying that by paying the bill off multiple times in a month is a trigger? Maybe they should just increase since they see you can pay it...

Mabe call / sm for a CL increase.

[CountValentine]

I will make this simple.
Paying before statement closes - No AA risk
Prepaying or churning CL - AA risk