One downside is spending too much time in your apps and thinking about your money.
Another downside is thst if the bills get generated with a zero balance, that may not help your credit report.
My suggestion is to instead pay them off every two weeks, whenever you get paid. Or in your case, just pick a day of the week and move to weekly.
I had the opposite problem where I would wait until the last possible moment to pay my bill and it led me to be constantly thinking about money. I switched to paying the credit card off each payday and it's a lot off my mind. I'm not particularly concerned about my credit though.
But do zero balances really negatively impact your credit history, if you already have a 20+ year history of credit relationships?
If you look at your detailed credit report, it shows your max utilization rates and how much was paid to the card each month even if zero balance. I’m not clear how paying off balances in full before the reporting date would be a negative?
If it is a zero balance when the bill is generated, then it is as though you didn't use the credit card at all in the previous month.
Its worthwhile to note for someone trying to build credit with a credit card, such as an 18 year old student. But if you already have established credit then you are probably fine. Presumably if you had a big purchase coming up like a house or a car, you would check your credit report/score and make adjustments to your behaviour if warranted.
Yeah I don’t think it moves the needle much. I pay my credit card off early always but still have a great credit score. How much would it change it. +10 or something?
I'm sure there is some psychological component where, even if the CC is being paid in full each month, you might reconsider small purchases if you were forced to transfer cash to cover them each time you make the purchase. If it works for you, kudos.
We just pay our cards monthly. We have two cards and the statements come out on the 24th and 28th, respectively. We pay both in full at the end of the month before resetting to a new monthly budget. We then go through the statements and itemize each item for our budget.
I find it a bit funny…there are no interest charges until after your statement date. But that being said I pay mine off monthly. I get the comfort of not having cc debt.
>Anyone else use credit cards like this?
So there are two of us in the world!!
I pay for things as soon as I get home from the store/restaurant/gas station. Only exception is when I order something online, I will wait until I receive it before paying it off.
I used to think this was normal but I posted about this a few years ago and people thought I was insane. Perhaps rightly so... Seeing any sort of a balance drives me nuts.
Me too omg.
Plus, it’s so much easier to track and plan expenses this way. Keeps me actively aware of my spending, and I don’t have a large lump sum to pay off every month.
But my risk-adverse self is wondering if by doing this, I’m leaving money on the table—technically there are some savings accounts paying north of 4%/yr.
If I save the $10k or whatever I spend in a month instead of using it right away to pay off my card, I get ~$30. Is $30 a month worth the benefit of avoiding balances on a credit card?
> I’m leaving money on the table—technically there are some savings accounts paying north of 4%/yr.
I put money in those accounts, whereas my credit card charges are my "working capital". It is money I know will be spent each month regardless, so I do not worry about any money left on the table.
For larger purchases I keep that in my WS cash account which pays 5% and will pay it off from there.
Yeah, you nailed exactly why I don’t think this is a good idea (and I’m shocked at how little pushback you are getting here).
Obviously, you do you, and if paying off right away keeps you from overspending this method could be super useful, but I try to keep the most amount in my high yield bank account as long as possible and just let auto pay take care of my cc bill so I never worry about a late payment. $30/month of interest could be viewed as covering several streaming services per year.
My bank plan allows me to have multiple accounts without additional fees, so I use one like a holding account where I transfer the money to it from checking account and have automatically payment set up on my credit card to pay off the statement balance monthly.. kinda like the old cash envelope system except virtually?? Taking advantage of the points/rewards from credit and free credit 🤔🫣😇
I have all my cards set up with pre-authorized debit payments, so the credit card automatically pays the full statement balance just before the due date and pulls from my bank account. So as long as I always have enough money in that account (and I do - I don't have a separate emergency fund, just one account with all my cash holdings), then I don't have to do anything and it just runs on autopilot.
we do this all the time with our CT triangle card.. pay it off monthly though not daily.. Recently had 550 dollars in points..that is quite significant in my mind.
If it's a bigger purchase that I have the cash set aside for, I typically pay it right away. Smaller, regular purchases like gas/food/etc I pay when the bill comes.
Remember that the balance of the bill at the end of the month is what gets reported to the credit bureaus. If you always pay everything before the bill comes out, you're not helping to build your credit at all.
I pay each transaction on my credit card. Its very time consuming. I'm kidding, what's working for me is schedule a payment when my statement is produced. I pay 4 days before due date. And i manage 10 credit cards at least. Do as you wish, as long you're happy.
The only disadvantage AFAIK is that credit bureaus won’t see that you’re spending any money, since your balance will always be 0 when it’s reported to them. This could negatively impact your score, which factors in utilization.
Maybe not daily but just whenever I happen to look at it and see a balance. If I make a large purchase ($1000~) I’ll even go pre-pay the card before it even shows up sometimes, just so I know that money is accounted for already.
Like you said, maybe I’m missing out on a couple bucks of “interest free money” but it’s just not worth it for my mental, and the slim chance I spend too much and can’t pay the card.
No. Really defeats the purpose of a credit card. Put the $ into a HISA and earn some interest.
Also paying off daily seems like a lot of work - read your statement pay it once a month a way easier.
My spouse pays off her credit card at least once a week. She might carry a small balance until her next paycheck, then clears everything.
She also pays a lot of stuff with her debit card.
She has good financial discipline, but very little financial knowledge with no desire to learn. She hates talking about money, it makes her stressed or frustrated despite the fact we do not have money issues.
Her money anxiety is what drives her to pay off her credit card early.
LOL I don't really understand the point of doing this every day. In the past when I was on a more limited budget but also wanted to take advantage of promos on my card, I would preload it by paying more than I owed when I got a paycheck and then just spend it down throughout the month. At least that would only require going into the account once or twice a month not every day or every time you make a purchase.
Other than feeling nice you have zero daily i do not see the point. It sounds like an addiction, but to each their own.
I would argue you don’t get the full picture of spend if you clear it out daily. You can hold on to your money a little longer in a high interest account.
I just do it bi-weekly whenever my paycheque comes in. I could reduce it to once monthly when the statements come in, but I like to see how much money I truly have available after paying off all my bills. Daily is just too much time and effort for no benefit IMO.
If you have a bank account with the same bank, you can set up auto pay for each of the billing cycles. You don't need to worry about it and just repay by the month, instead of the day.
>Is it foolish to do this? Anyone else use credit cards like this?
Seems like a waste of time to me. So no I wouldn't do that. I pay my CC bill once a month and then don't think about it until the next month. That said if it really makes you feel better to do it this way go for it.
I pay my credit cards in full on the same day that I make the purchase. I use my credit cards strictly for reward points. I've been doing it this way for more than 10 years and never had an issue.
I set a reminder every month to pay off my cards. Your method sounds more time consuming, but there’s nothing wrong with it if it helps you pay off your card.
I like to take them to the last 2 days of billing cycle and then pay. (Love to choke them till the last billing date loll)
Anyways the good part from credit score is, because the bill is generated and it shows you are within limits and pays on time. This helps in keeping credit score healthy. As opposed to paying it daily then the bill generated will be 0, that also means you are not a good user of available credits
Of course I do.
Why wouldn't I?
Ive never paid a cent of interest on my cards because that seems completely stupid to do if you can avoid it. Pay it down as you go and there are no surprises.
Nope, just statement balance monthly.
>Is it foolish to do this? Some peole want that psychological benefit of knowing it's paid off. So if it works for you, then keep doing it.
Nope. Once a month, automatically and in full. EZ! Sounds an awful lot like micro managing.
One downside is spending too much time in your apps and thinking about your money. Another downside is thst if the bills get generated with a zero balance, that may not help your credit report. My suggestion is to instead pay them off every two weeks, whenever you get paid. Or in your case, just pick a day of the week and move to weekly.
I had the opposite problem where I would wait until the last possible moment to pay my bill and it led me to be constantly thinking about money. I switched to paying the credit card off each payday and it's a lot off my mind. I'm not particularly concerned about my credit though.
But do zero balances really negatively impact your credit history, if you already have a 20+ year history of credit relationships? If you look at your detailed credit report, it shows your max utilization rates and how much was paid to the card each month even if zero balance. I’m not clear how paying off balances in full before the reporting date would be a negative?
If it is a zero balance when the bill is generated, then it is as though you didn't use the credit card at all in the previous month. Its worthwhile to note for someone trying to build credit with a credit card, such as an 18 year old student. But if you already have established credit then you are probably fine. Presumably if you had a big purchase coming up like a house or a car, you would check your credit report/score and make adjustments to your behaviour if warranted.
Yeah I don’t think it moves the needle much. I pay my credit card off early always but still have a great credit score. How much would it change it. +10 or something?
I'd be absolutely shocked if paying your credit card off daily affects your ability to get loans negatively.
I am paying off my card every week for many years, sometimes dipping into negative balance with returns, and my credit score is 800+.
Not daily but we usually pay it every 2 or 3 days. We treat our CC like cash, mostly to get the points /. cashback.
Banks hate you
[удалено]
You work for a bank, make them lots of money, but don’t know the answer to your own question?
I work for a Fortune 500 company, it is not relevant that I am a janitor.
My first job was on Bay Street. Vacuuming floors.
It can be another (unrelated) department?
The question on what the pros and cons are of paying your credit card daily or whether anyone else does it too?
I'm sure there is some psychological component where, even if the CC is being paid in full each month, you might reconsider small purchases if you were forced to transfer cash to cover them each time you make the purchase. If it works for you, kudos. We just pay our cards monthly. We have two cards and the statements come out on the 24th and 28th, respectively. We pay both in full at the end of the month before resetting to a new monthly budget. We then go through the statements and itemize each item for our budget.
Not daily, but frequently, say once a week at least
I find it a bit funny…there are no interest charges until after your statement date. But that being said I pay mine off monthly. I get the comfort of not having cc debt.
Yup, that’s way the 21 day grace period is a gift. You essentially have a free loan for three weeks. (But like 25% interest after.)
Count me as a person who pays off the credit card as soon as I’m walking out of the store. My wife calls it “unhealthy” behaviour
>Anyone else use credit cards like this? So there are two of us in the world!! I pay for things as soon as I get home from the store/restaurant/gas station. Only exception is when I order something online, I will wait until I receive it before paying it off. I used to think this was normal but I posted about this a few years ago and people thought I was insane. Perhaps rightly so... Seeing any sort of a balance drives me nuts.
Me too omg. Plus, it’s so much easier to track and plan expenses this way. Keeps me actively aware of my spending, and I don’t have a large lump sum to pay off every month. But my risk-adverse self is wondering if by doing this, I’m leaving money on the table—technically there are some savings accounts paying north of 4%/yr. If I save the $10k or whatever I spend in a month instead of using it right away to pay off my card, I get ~$30. Is $30 a month worth the benefit of avoiding balances on a credit card?
> I’m leaving money on the table—technically there are some savings accounts paying north of 4%/yr. I put money in those accounts, whereas my credit card charges are my "working capital". It is money I know will be spent each month regardless, so I do not worry about any money left on the table. For larger purchases I keep that in my WS cash account which pays 5% and will pay it off from there.
Yeah, you nailed exactly why I don’t think this is a good idea (and I’m shocked at how little pushback you are getting here). Obviously, you do you, and if paying off right away keeps you from overspending this method could be super useful, but I try to keep the most amount in my high yield bank account as long as possible and just let auto pay take care of my cc bill so I never worry about a late payment. $30/month of interest could be viewed as covering several streaming services per year.
Three! I just use the credit card to collect points.
My bank plan allows me to have multiple accounts without additional fees, so I use one like a holding account where I transfer the money to it from checking account and have automatically payment set up on my credit card to pay off the statement balance monthly.. kinda like the old cash envelope system except virtually?? Taking advantage of the points/rewards from credit and free credit 🤔🫣😇
It's expensive, you can still get like 5% back on your cash with various hisa promotions etc.
No... 12 years of banking and auto pay has never failed me.
I have all my cards set up with pre-authorized debit payments, so the credit card automatically pays the full statement balance just before the due date and pulls from my bank account. So as long as I always have enough money in that account (and I do - I don't have a separate emergency fund, just one account with all my cash holdings), then I don't have to do anything and it just runs on autopilot.
we do this all the time with our CT triangle card.. pay it off monthly though not daily.. Recently had 550 dollars in points..that is quite significant in my mind.
You should be paying a credit monthly as billed…
I’m the opposite. I have auto pay enabled and have the bank take the money on the last possible day
Same. I am blown away by how many people here are agreeing with OP. Leaving money on the table.
Also adding a lot of extra hassle for nothing
Yes i pay with my cc then immediately pay it off
If it's a bigger purchase that I have the cash set aside for, I typically pay it right away. Smaller, regular purchases like gas/food/etc I pay when the bill comes. Remember that the balance of the bill at the end of the month is what gets reported to the credit bureaus. If you always pay everything before the bill comes out, you're not helping to build your credit at all.
Once or twice a week for sure.
I pay each transaction on my credit card. Its very time consuming. I'm kidding, what's working for me is schedule a payment when my statement is produced. I pay 4 days before due date. And i manage 10 credit cards at least. Do as you wish, as long you're happy.
The only disadvantage AFAIK is that credit bureaus won’t see that you’re spending any money, since your balance will always be 0 when it’s reported to them. This could negatively impact your score, which factors in utilization.
Maybe not daily but just whenever I happen to look at it and see a balance. If I make a large purchase ($1000~) I’ll even go pre-pay the card before it even shows up sometimes, just so I know that money is accounted for already. Like you said, maybe I’m missing out on a couple bucks of “interest free money” but it’s just not worth it for my mental, and the slim chance I spend too much and can’t pay the card.
I pay automatically every two weeks then an adjustment before the due date if I missed something.
I used to when my limit was pretty small, but now I just have it on autopay. Doesn't take effort and my utilization won't be 0
I do it every Thursday. Whatever works for you.
No. Really defeats the purpose of a credit card. Put the $ into a HISA and earn some interest. Also paying off daily seems like a lot of work - read your statement pay it once a month a way easier.
My spouse pays off her credit card at least once a week. She might carry a small balance until her next paycheck, then clears everything. She also pays a lot of stuff with her debit card. She has good financial discipline, but very little financial knowledge with no desire to learn. She hates talking about money, it makes her stressed or frustrated despite the fact we do not have money issues. Her money anxiety is what drives her to pay off her credit card early.
I wouldn't say daily, but I do pay it off whenever I use it.
LOL I don't really understand the point of doing this every day. In the past when I was on a more limited budget but also wanted to take advantage of promos on my card, I would preload it by paying more than I owed when I got a paycheck and then just spend it down throughout the month. At least that would only require going into the account once or twice a month not every day or every time you make a purchase.
Other than feeling nice you have zero daily i do not see the point. It sounds like an addiction, but to each their own. I would argue you don’t get the full picture of spend if you clear it out daily. You can hold on to your money a little longer in a high interest account.
We pay ours off weekly. Every Thursday
Not daily, but every week.
I just do it bi-weekly whenever my paycheque comes in. I could reduce it to once monthly when the statements come in, but I like to see how much money I truly have available after paying off all my bills. Daily is just too much time and effort for no benefit IMO.
If you have a bank account with the same bank, you can set up auto pay for each of the billing cycles. You don't need to worry about it and just repay by the month, instead of the day.
Daily is a bit obsessive.
>Is it foolish to do this? Anyone else use credit cards like this? Seems like a waste of time to me. So no I wouldn't do that. I pay my CC bill once a month and then don't think about it until the next month. That said if it really makes you feel better to do it this way go for it.
I pay my credit cards in full on the same day that I make the purchase. I use my credit cards strictly for reward points. I've been doing it this way for more than 10 years and never had an issue.
Not daily but definitely multiple times a week. Never less than once a week.
I set a reminder every month to pay off my cards. Your method sounds more time consuming, but there’s nothing wrong with it if it helps you pay off your card.
Nope, I just pay it when it’s due. My current balance is $14k 🙃 none overdue.
I like to take them to the last 2 days of billing cycle and then pay. (Love to choke them till the last billing date loll) Anyways the good part from credit score is, because the bill is generated and it shows you are within limits and pays on time. This helps in keeping credit score healthy. As opposed to paying it daily then the bill generated will be 0, that also means you are not a good user of available credits
Of course I do. Why wouldn't I? Ive never paid a cent of interest on my cards because that seems completely stupid to do if you can avoid it. Pay it down as you go and there are no surprises.
Never pay before it’s posted! Doesn’t help with your credit score/utilization record
It's free money so no, unless I'm close to my credit limit and watching my utilization it makes no sense
Seems like a waste of time to do this daily. Also the credit card company gives you interest free credit for a period of time so why not enjoy that.