Paying before the bill

Discussion in 'Credit Talk' started by jdtsp, Jun 23, 2005.

  1. jdtsp

    jdtsp Member

    I'm going to Vegas in a couple weeks and booked and paid for my flight and my hotel on my CC. My USAA credit card has a 25 day grace period with 0% interest so I paid the amounts online before I even got the bill to avoid paying interest (about 9% APR). Was that a foolish thing to do in regards to showing payments and raising my credit score?
     
  2. ontrack

    ontrack Well-Known Member

    FICO can only score what is visible to it in your credit reports. It doesn't even have your monthly income to work with, so it can't even estimate your cash flow.

    If your reports show a long history with a number of tradelines, all "paid as agreed", high credit limits with low balances, no lates, and no collection accounts, what else is there? The only ambiguous issue is for accounts that don't show a maximum credit limit, but only a high balance, but if you have several other accounts that show full information, and overall low net balance to credit limit, this shouldn't matter much.

    If you pay ahead, it will just limit the blip in your debt to limit ratio, but unless this will somehow critically affect some pending loan, I doubt that most of your creditors will even notice it.
     
  3. jdtsp

    jdtsp Member

    Thanks ontrack!
     
  4. ontrack

    ontrack Well-Known Member

    Look after your own bottom line first. The rest is gossip, and you can't spend it.
     

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