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Started By
Message
Credit Card Monthly Payment Interest Timing
Posted on 6/28/23 at 11:38 am
Posted on 6/28/23 at 11:38 am
Hi...I have a CC that is a higher balance than I would like, but I'm working on it. I have a few questions that I'm hoping I can get some help with to continue moving forward regarding my credit repair. TIA for any/all advice.
1 ) I pay ~$150 more per month than the MIN. My main question is, what day of the month should I set the auto-pymt to where my monthly pymt hits and the interest isn't calculated on that amount? I hope that makes sense. Currently I have it set for the 1st of the month, but I'm thinking I may be hurting myself on the full balance getting that interest calculation hit.
2) Regarding Debt Consolidation companies - Are those good to work with to help lower my interest rate? Does it hurt your credit in any way, like if its a bankruptcy? I've worked on getting my credit to be in the decent low 700 range, so don't want to hurt that to bad as I'm trying to continue moving in the right direction. Now if its a small step back to take a large one forward, I'm good with that, but just wondering the best approach.
3) I have 2 old CCs with one of those starter companies I got in college, and right after. One being my oldest original CC. I don't use them much, and the limits aren't great. Should I close the least oldest one and keep the oldest one to stay on my Credit history or closing both should be fine?
1 ) I pay ~$150 more per month than the MIN. My main question is, what day of the month should I set the auto-pymt to where my monthly pymt hits and the interest isn't calculated on that amount? I hope that makes sense. Currently I have it set for the 1st of the month, but I'm thinking I may be hurting myself on the full balance getting that interest calculation hit.
2) Regarding Debt Consolidation companies - Are those good to work with to help lower my interest rate? Does it hurt your credit in any way, like if its a bankruptcy? I've worked on getting my credit to be in the decent low 700 range, so don't want to hurt that to bad as I'm trying to continue moving in the right direction. Now if its a small step back to take a large one forward, I'm good with that, but just wondering the best approach.
3) I have 2 old CCs with one of those starter companies I got in college, and right after. One being my oldest original CC. I don't use them much, and the limits aren't great. Should I close the least oldest one and keep the oldest one to stay on my Credit history or closing both should be fine?
7
Posted on 6/28/23 at 12:33 pm to HagaDaga
1 Pay it as soon as you can. Interest accrues on the balance daily. As soon as you have the money, pay the extra.
2 Are you talking about a company offering a loan with an interest rate better than your different credit card companies? As long as you're getting a better interest rate that's fine and has no impact other than just a reported loan. Zeroing out all your balances will actually help your credit score.
3 No real need to close any cards.
2 Are you talking about a company offering a loan with an interest rate better than your different credit card companies? As long as you're getting a better interest rate that's fine and has no impact other than just a reported loan. Zeroing out all your balances will actually help your credit score.
3 No real need to close any cards.
Posted on 6/28/23 at 1:11 pm to Thundercles
Thanks for the response.
I can't pay off the whole balance right now, so I guess I'm wondering when I should set my auto-pay to make my monthly interest pymt charge the lowest possible. If that is even possible to really determine. I guess I thought since I see one charge it was only figured out once a month.
Yes one of these kinds. Ok, so it looks just like a loan. I was thinking about this to help zero out my CC and then be able to manage it better this time around and pay it off in full each time I use it.
quote:
Pay it as soon as you can. Interest accrues on the balance daily. As soon as you have the money, pay the extra.
I can't pay off the whole balance right now, so I guess I'm wondering when I should set my auto-pay to make my monthly interest pymt charge the lowest possible. If that is even possible to really determine. I guess I thought since I see one charge it was only figured out once a month.
quote:
2 Are you talking about a company offering a loan with an interest rate better than your different credit card companies? As long as you're getting a better interest rate that's fine and has no impact other than just a reported loan. Zeroing out all your balances will actually help your credit score.
Yes one of these kinds. Ok, so it looks just like a loan. I was thinking about this to help zero out my CC and then be able to manage it better this time around and pay it off in full each time I use it.
quote:Ok. Good to know.
3 No real need to close any cards.
This post was edited on 6/28/23 at 1:13 pm
Posted on 6/28/23 at 1:50 pm to HagaDaga
1) Pay the extra money as soon as you can. The sooner you pay it, the sooner it starts reducing your principal balance; therefore, reducing the amount of interest.
2) As long as it is a loan and they will not be negotiating with the cc companies. Most of those companies will make you close active CC, and will try to reduce the balances. If they do that, it will negatively impact your credit score as you will have negative remarks since you negotiated a lower balance.
2a) Talk to banks about a loan, and also look into cc that offer 0% introductory rates if you do a cash advance. You'll be hit with a 5% fee, but if you are paying minimal that 5% upfront fee may be lower than the interest.
3) Keep the old cards. Average age of credit has an impact on your credit score. The more older cc you have, the higher that average age of credit will be.
2) As long as it is a loan and they will not be negotiating with the cc companies. Most of those companies will make you close active CC, and will try to reduce the balances. If they do that, it will negatively impact your credit score as you will have negative remarks since you negotiated a lower balance.
2a) Talk to banks about a loan, and also look into cc that offer 0% introductory rates if you do a cash advance. You'll be hit with a 5% fee, but if you are paying minimal that 5% upfront fee may be lower than the interest.
3) Keep the old cards. Average age of credit has an impact on your credit score. The more older cc you have, the higher that average age of credit will be.
Posted on 6/28/23 at 3:18 pm to HagaDaga
quote:
I can't pay off the whole balance right now
What I mean is that the interest is accrued daily and then billed monthly. The lower your balance is at any point, the less interest will be accrued each month.
It's incredibly minor, but can make a difference in the long run.
quote:
I was thinking about this to help zero out my CC and then be able to manage it better this time around and pay it off in full each time I use it.
I did this with an Amex personal loan and it was a good decision. Just don't run balances back up.
Posted on 6/28/23 at 3:31 pm to HagaDaga
quote:quote:
Pay it as soon as you can. Interest accrues on the balance daily. As soon as you have the money, pay the extra.
I can't pay off the whole balance right now, so I guess I'm wondering when I should set my auto-pay to make my monthly interest pymt charge the lowest possible. If that is even possible to really determine. I guess I thought since I see one charge it was only figured out once a month.
He’s saying to pay as soon as you can pay. If you are paid on the 1st and 15th, set it to pay on the 2nd and 16th.
Posted on 6/28/23 at 7:29 pm to HagaDaga
This information may help:
Many (all?) credit card company policies is to apply the minimum payment to your lowest rate balance (typically the current monthly charges that have yet to accrue interest), then anything over the minimum is applied to the highest rate balances.
As for the timing, pay them as soon as possible, but keep the above in mind when you see the money applied to the balances.
Many (all?) credit card company policies is to apply the minimum payment to your lowest rate balance (typically the current monthly charges that have yet to accrue interest), then anything over the minimum is applied to the highest rate balances.
As for the timing, pay them as soon as possible, but keep the above in mind when you see the money applied to the balances.
Posted on 6/28/23 at 7:34 pm to HagaDaga
quote:
my credit to be in the decent low 700 range
Look into a place like Lightstream or SoFi for personal or credit card consolidation loan. Cheaper than CC interest.
Posted on 6/28/23 at 9:53 pm to Thundercles
(no message)
This post was edited on 6/28/23 at 9:56 pm
Posted on 6/29/23 at 6:41 am to HagaDaga
quote:
I have a CC that is a higher balance than I would like, but I'm working on it.
Good you're working on it. What is the balance?
Need a mindshift shift on these. The rates on CC's after the first year is high as hell. Any balance is a money loser.
quote:
1 ) I pay ~$150 more per month than the MIN. My main question is, what day of the month should I set the auto-pymt to where my monthly pymt hits and the interest isn't calculated on that amount? I hope that makes sense. Currently I have it set for the 1st of the month, but I'm thinking I may be hurting myself on the full balance getting that interest calculation hit.
Do everything you can do knock it fully out.
quote:
One being my oldest original CC. I don't use them much, and the limits aren't great. Should I close the least oldest one and keep the oldest one to stay on my Credit history or closing both should be fine?
Keep them only if you plan on doing the first things I said. This helsp your score with length of credit history. It sounds like you might be in a large hole and if so might be best just getting rid of them completely.
Posted on 6/29/23 at 10:21 am to Billy Blanks
Can you transfer the balances to a no interest for 12 to 15 month credit card?
That is what I did when I got in CC debt in my 20s. Had to play that game for two years to get out of the hole I dug myself in.
That is what I did when I got in CC debt in my 20s. Had to play that game for two years to get out of the hole I dug myself in.
Posted on 6/29/23 at 11:13 am to HagaDaga
SoFi is offering a CC with 0% interest on transfers for 12 months currently. I just used it to help pay off/down some CC debt.
Posted on 6/29/23 at 4:43 pm to Falco
Any transaction fees? Many credits will do a transfer for 0% interest but 2/3% fees.
Just curious for the op.
Just curious for the op.
Posted on 6/30/23 at 12:14 am to HagaDaga
quote:
2) Regarding Debt Consolidation companies - Are those good to work with to help lower my interest rate?
You need a mindset change, not debt consolidation. Stop spending money you don't have, or it won't really matter what you do.
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