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      02-11-2015, 05:19 PM   #45
TXSTYLE
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how's the citi double cash card working out for you? i was actually looking for a better rewards card and the citi has popped up more than once in recommendations
Just got it @ 3 weeks ago. So it'll take some time to get to know it well. I can say that customer service is top notch and you get a live person every time you call. And the "Citi Pass" with exclusive discount offers to concerts, events, hotels is real nice too. You really can't go wrong with 0% for 15 months on purchases and 2%cash back no restrictions.
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      02-11-2015, 07:08 PM   #46
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What do you guys mean by not going over the 20 or 50% of the limit? Do you mean at any given time during the month, or just when they report the statement balance (usually 3 business days after payment due date)? I assume it's the latter.
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      02-11-2015, 07:35 PM   #47
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Originally Posted by Wrecker335d View Post
What do you guys mean by not going over the 20 or 50% of the limit? Do you mean at any given time during the month, or just when they report the statement balance (usually 3 business days after payment due date)? I assume it's the latter.
This refers to to the "TOTAL % of Available Credit on that Card"

So $10k. I keep it under 50% at all times usually less. But my score has never suffered at all. You'll hear different opinions. Some say 20%. Well again, I've made several purchases that hit or exceeded 50% (but I make large payments on or before the next billing cycle) and I know I am in the upper crust of high credit scores and get line increases or new card offers like clock work.
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      02-11-2015, 07:50 PM   #48
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Originally Posted by TXSTYLE View Post
This refers to to the "TOTAL % of Available Credit on that Card"

So $10k. I keep it under 50% at all times usually less. But my score has never suffered at all. You'll hear different opinions. Some say 20%. Well again, I've made several purchases that hit or exceeded 50% (but I make large payments on or before the next billing cycle) and I know I am in the upper crust of high credit scores and get line increases or new card offers like clock work.
This is what I got confused by. I routinely have my cards hit 90-100% of the limit during the month (it's only $3k for each), but the day before the due date I pay it down to 5%, and don't use it until the day it reports (4 days after due date for NavyFed) a 5% used CC on the statement. Maybe this is what they were trying to say as well. I don't believe going over 50% of your limit in between statement balances is going to hurt you, as it doesn't for me.
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      02-11-2015, 07:53 PM   #49
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Originally Posted by Wrecker335d View Post
This is what I got confused by. I routinely have my cards hit 90-100% of the limit during the month (it's only $3k for each), but the day before the due date I pay it down to 5%, and don't use it until the day it reports (4 days after due date for NavyFed) a 5% used CC on the statement. Maybe this is what they were trying to say as well. I don't believe going over 50% of your limit in between statement balances is going to hurt you, as it doesn't for me.
Bingo! It's all about timing.
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      02-11-2015, 08:27 PM   #50
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Quote:
Originally Posted by Wrecker335d View Post
This is what I got confused by. I routinely have my cards hit 90-100% of the limit during the month (it's only $3k for each), but the day before the due date I pay it down to 5%, and don't use it until the day it reports (4 days after due date for NavyFed) a 5% used CC on the statement. Maybe this is what they were trying to say as well. I don't believe going over 50% of your limit in between statement balances is going to hurt you, as it doesn't for me.
If you were applying for a loan at the same time, it would not be good, but otherwise, doesn't matter. I can't do that, my navy fed is 25k, citi 35k, chase 25k, penfed 20k, Amex cut me to 10k for non usage. If I used it up to the limit it would make for nice rewards, but I'd be spending too much. I go as high as 3k on a bad month but always pay in full.
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      02-11-2015, 09:34 PM   #51
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Quote:
Originally Posted by Wrecker335d View Post
This is what I got confused by. I routinely have my cards hit 90-100% of the limit during the month (it's only $3k for each), but the day before the due date I pay it down to 5%, and don't use it until the day it reports (4 days after due date for NavyFed) a 5% used CC on the statement. Maybe this is what they were trying to say as well. I don't believe going over 50% of your limit in between statement balances is going to hurt you, as it doesn't for me.
It's all about your payment due date and your closing date.

Credit limit: $5000
Balance on 1/15/15: $4000
Payment due date: 2/1/15
Balance due on 2/1/15: $100
Closing date: 2/4/15

You are only obliged to pay $100 by 2/1/15, and this is what will be withdrawn from your checking account if you have auto-payment set up. The remaining $3900 is not subject to any type of interest. If you pay $100 (which technically counts as "paying your card off in full") on 2/1/15 and you don't spend anymore until 2/4/15, then your remaining balance after 2/1/15 will be $3900. If 2/4/15 rolls around and you still do nothing, your "reported" balance is now $3900 and you will now have the following stats:

Credit limit: $5000
Balance on 2/4/15: $3900
Payment due date: 3/1/15
Balance due on 3/1/15: $3900
Closing date: 3/4/15

Now, all of that $3900 is due on March 1st, and you've just used 3900/5000 = 78% of your credit limit for that month.

But, you don't have to do that. You can instead do the following

Credit limit: $5000
Balance on 1/15/15: $4000
Payment due date: 2/1/15
Balance due on 2/1/15: $100
Closing date: 2/4/15

Now, let's say you make a payment of $3999 by 2/1/15 even though only $100 is due. Your new balance is $1. If 2/4/15 rolls around and you've done nothing, your reported balance will be $1. You will now have the following stats:


Credit limit: $5000
Balance on 2/4/15: $1
Payment due date: 3/1/15
Balance due on 3/1/15: $1
Closing date: 3/4/15

You continue to use your card and rack up a balance of $4000 by 2/27/15, but you pay off $3999 by 3/1/15. Your reported balance for the next month will be $1.

In other words, even though you're routinely charging $4000 per month on your $5000 limit card, if you pay off the balance before it's even reported to the credit card company your credit utilization ratio won't be anywhere near 80%. In fact, you can doctor your credit utilization ratio to be whatever you want even if you technically max out your card every month.

This is precisely what I do with my card. I routinely spend most of my total available credit per month, but I pay it all off except for $1 before the closing date (note: This is not the same thing as "carry a balance" I'm paying the card off in full and then some). Of course, things aren't always exact and I'll continue to spend between the payment due date and the closing date, so my reported balance isn't always $1 exactly. It fluctuates from $1 to maybe $100, even though I'm routinely spending thousands per month.

I think the important thing to note here is the quirk about auto-payment. If you have auto-payment set up, it will only pay off what's technically due by the due date. It won't pay off any additional balance until the "proper" cycle, and that could be disastrous to your credit score.
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      02-11-2015, 09:46 PM   #52
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Good, we're all on the same page then. Thank you.
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      02-11-2015, 09:53 PM   #53
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Yeah I know. That post wasn't really for you (even though I technically replied to it) since I know you know what you're doing. It was mostly for others reading the discussion from the outside. I figured a concrete example could be useful.
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      02-12-2015, 08:45 AM   #54
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Quote:
Originally Posted by NemesisX View Post

I think the important thing to note here is the quirk about auto-payment. If you have auto-payment set up, it will only pay off what's technically due by the due date. It won't pay off any additional balance until the "proper" cycle, and that could be disastrous to your credit score.
Auto pay sucks. Rule number 3 of fight club. Don't be lazy, don't use auto pay
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      02-12-2015, 09:04 AM   #55
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Auto pay sucks. Rule number 3 of fight club. Don't be lazy, don't use auto pay
Actually autopay should ALWAYS be set up up as a backstop in case you accidentally miss a payment. The real disaster would be having a late payment on your credit report which could have been prevented by autopay. You can certainly pay off the balance before the autopay kicks but it gives you the peace of mind.
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      02-12-2015, 09:21 AM   #56
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Quote:
Originally Posted by KingOfJericho View Post
Actually autopay should ALWAYS be set up up as a backstop in case you accidentally miss a payment. The real disaster would be having a late payment on your credit report which could have been prevented by autopay. You can certainly pay off the balance before the autopay kicks but it gives you the peace of mind.
Bingo. I have autopay set up as a default for everything I pay on. However, I go on to all my accounts almost daily to verify my spend and payments sent, so if I want to alter how much I feel like paying for that period, I just change the amount.

It's saved me a few times from having a late payment, but that was maybe a handful of times over the course of 8 years. Still nice to have a backup plan.
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      02-12-2015, 09:36 AM   #57
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It is remarkable to see how hard Americans work at getting and maintaining a credit rating. It's kind of unheard of here or back home (Australia).

It's a bit odd doing business in the US too, vendors want a credit card or up front payment and i'm like, what planet are you on buddy, it's 60 days.

Weird.
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      02-12-2015, 09:43 AM   #58
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Quote:
Originally Posted by KingOfJericho View Post
Actually autopay should ALWAYS be set up up as a backstop in case you accidentally miss a payment. The real disaster would be having a late payment on your credit report which could have been prevented by autopay. You can certainly pay off the balance before the autopay kicks but it gives you the peace of mind.
I never forget to pay my bills. I know what's on my plate at all times. Unless i'm on my death bed, I will pay my bills manually.
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      02-12-2015, 09:44 AM   #59
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Yeah I'm skeptical about using autopay, I like to review my statements briefly before paying them to see if I notice anything off.
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      02-12-2015, 10:39 AM   #60
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I never forget to pay my bills. I know what's on my plate at all times. Unless i'm on my death bed, I will pay my bills manually.
Kudos to you, however I still think it's foolish not to use the free backstop of autopay.
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      02-12-2015, 10:56 AM   #61
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Auto-Pay is a nice "safe keep". As mentioned, it provides you at least the minimum payment to be paid in case of a mishap. So I'm perfectly ok with it and have a couple accounts setup that way. But I generally go in and make payments prior to my billing cycle cutting off.
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      02-12-2015, 10:59 AM   #62
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Originally Posted by TXSTYLE View Post
Just got it @ 3 weeks ago. So it'll take some time to get to know it well. I can say that customer service is top notch and you get a live person every time you call. And the "Citi Pass" with exclusive discount offers to concerts, events, hotels is real nice too. You really can't go wrong with 0% for 15 months on purchases and 2%cash back no restrictions.
that's what i was thinking. enjoy!
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      02-12-2015, 11:30 AM   #63
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Quote:
Originally Posted by Alfisti View Post
It is remarkable to see how hard Americans work at getting and maintaining a credit rating. It's kind of unheard of here or back home (Australia).

It's a bit odd doing business in the US too, vendors want a credit card or up front payment and i'm like, what planet are you on buddy, it's 60 days.

Weird.
I agree, the only thing it does is to ensure you get a loan, and at the best rate.

Both my wife and I have 880+. Does it mean I can get a M3? Yes it does. Does it mean I have one? No, it does not. Does it mean I can afford one? Negatory.

The way I see it, one place you can overextend within reason and justify, is on your home. So having a high FICO will enable banks to overextend to you, at the lowest rate. Other than that, if you deal cash only, who cares about your credit...
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      02-12-2015, 11:31 AM   #64
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Originally Posted by TXSTYLE View Post
Auto-Pay is a nice "safe keep". As mentioned, it provides you at least the minimum payment to be paid in case of a mishap. So I'm perfectly ok with it and have a couple accounts setup that way. But I generally go in and make payments prior to my billing cycle cutting off.
True, if you forget, autopay will make sure you aren't late. And you can still pay in full before the statement generates in such a case...
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      02-12-2015, 11:59 AM   #65
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This discussion about auto-pay made me think about the way I pay my card. I always pay off my card in full every month and it's usually within a day of the end of the billing cycle. The due date is at least 3+ weeks away still. I suppose you could say I'm losing the interest on that money when I could be keeping it for a few more weeks and earning that interest, but the interest on my checking account is laughable anyway. The difference would be measured in pennies. Is there any other downside to paying off a card at the billing cycle end as opposed to waiting until closer to the due date?
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      02-12-2015, 03:06 PM   #66
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Do you guys have mandatory grace periods on interest like we do in Canada? Minimum 21 days.
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