So my husband and I have a Capital One card that has either 1% or 2% back on all purchases, and then 25% back at the end of the year on your accumulated cash back at that time (in october sometime). We are also living paycheck to paycheck, so when bills are due, I have to wait usually until the last day to pay and then pay online with debit card so I know when the payments will go through, etc. My question is 1) can I just pay all my bills (gas, electric, cable, plus other credit cards-circuit city and menards) and just pay it all off on the due date- 21 of every month? Question 2) how will this effect my credit- my limit is $2500 as of late and my bills equal about $750 for what I would be charging on the card.
Also, I am very good at budgeting, I record all my finances, debts, loans, every penny, through Quicken, so please no "be careful with credit cards..."- all of my other card payments are done on no interest for X amount of time.
Thanks again- and happy early new year!
2007-12-27 01:31:39 · 3 answers · asked by A K 4 in Business & Finance ➔ Credit
You must allow about 48 hours for a payment to be posted online. So, pay them a couple days ahead of due date.
Your credit will not be negatively affected as long as you pay the minimum payment due, on time.
You sound responsible, but don't let your monthly bills pile up on the card, and pay it in full when due.
I hope that you are aware of the interest rate on balances carried forward on those "rebate cards". Someone has to pay those and the bank is counting on high interest return from those who carry a balance. Some of those rates are about 21 % APR. Close to 2% per month.
Also consider this. Banks charge you a % fee immediately on all charges to the card. These fees also accumulate "daily" interest until paid. This is in addition to the fees charged to the other creditors or retail dealers. Those fees can run in the neighborhood of 5%.
If you are trying to have your payments fall at a more convenient time of the month, consider calling your creditors. They understand these things and I'm sure will work with you and adjust payment due dates..
2007-12-27 02:01:50 · answer #1 · answered by ed 7 · 0⤊ 0⤋
Credit cards have become a necessity in society nowadays, you can't go anywhere without having to use one. That's why it's imperative to maintain a goodpurchases are charged to your account. Before applying for one, allow yourself to learn as much information as possible, including the policies pertaining to a particular usage.
2007-12-27 11:20:08 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you can indeed pay off the entire balance by the due date, it makes sense. I put everything on my card, even all gas and groceries.
Your credit limit will not be adversly effected. In fact, they may raise it.
2007-12-27 09:40:11 · answer #3 · answered by Geno 3 · 1⤊ 0⤋