Hi, What is advantage or disadvantage of making several payments during month for credit card bill instead waiting for monthly statement? Question sound silly but Iâ??ve read some people are doing this, and I would like to know the reason. Thanks!
Not sure about others, but here's why I do it. During the months that I choose to carry a balance I mainly do it to minimize interest by controlling my average daily balance. During the months that I pay off in full during the grace period, I do it to ensure that my balance is as low as possible when my creditor updates my tradeline with the bureaus. The low-balance method works best when you can get all your revolving line due dates close together. My revolving lines update with the bureaus between the 15 and the 25 of the month. So, I try to get my payments posted by then.
Also some people may have a rewards card that they want to use, and they intend to pay balance off, but it might not have a high enough limit for an entire months worth of every gas / grocery / exc. purchase. For that reason some on CNet have been known to send 2 or more payments to the credit card company.
Thank you guys! Every day I'm learning something new, and I am glad that I have found this community! Denny
