Big purchase on credit card?

Question

Hi, I recently asked a question on here about making late payments. i made the payment online on the 17th, it is due on the 19th. of course it is the weekend. email confirmation said bank will be deibted on the 21st, so im pretty sure i'll be considered late which is basically credit suicide. (all payments on time before). as soon as i can i'll call to find out details BUT...

my question now is, i just got the papers to renew my car insurance. usually i have just paid the 6mos total in advance, and im considering doing that now. my inclination is to charge the $1000+ on my credit card to earn points, and just pay it off right away since i have the money available. OR should i pay it in installments, which looks better?

I'm especially concerned about making such a big charge after making the late payment. to the creditors it may look like im running out of money (late on one card, running up big charge on the other). what do you think?

Answer 1

your credit card payment will not be reported as late to the credit bureaus unless it is 30 days late and beyond. you will, however, be charged a late fee, though sometimes--one time--they'll waive the fee if you've been on time with them. your insurance makes no difference-- ins. cos do not report to the bureaus, so it won't help or hurt you. if you want points, charge it--but be sure to pay it off immdeiately(1-3 days after it posts). Be sure the $1k won't put you over limit--that's another ding, and often allows the card company to , without notice, out you at a much higher rate without notice (fine print). they say they'll adjust it back down but rarely do. with many insurance companies you save $$ by paying all at once as opposed to payments, but not all. good luck and congrats on paying so much attention to your stuff.

Answer 2

If you can pay the $1100 off before the interest is accrued, you shouldn't have a problem. Some CC companies monitor your spending habits. If you make many, many small purchases and then all of a sudden hit a $1100 purchase, they may deny the purchase until you are verified as the rightful owner of the credit card and are making the purchase. You may have to jump through hoops at the store but you'lll get the item. Just an inconvenience but it's to protect you and the card issuer from fraudulent use.

Answer 3

There's no reason I can see not to charge the insurance to a credit card, that is, if you pay it off before the due date next month. Since you payment was late, the company may raise your rate of interest and if you don't pay it off on the next month, you will pay a hefty carrying charge. It's always best, where possible to pay the total credit card balances monthly.

Answer 4

charge on the credit card if you want
as long as you make the requested payment on time or pay it off right away it wouldn't matter