Credit cycling isn’t initially bad just as long as you pay it back, you can use your credit again in the same billing cycle. Just gotta be careful some issue may close your credit card because of it because they deem it as a “risk” their problem ig but if you have good credits and always pay your bill off, they shouldn’t do that. Here’s an example explaining credit cycling
Let’s say the limit on your credit card is $1,000.
At the beginning of the month, you buy new tires that cost $998. That means the available credit left on your card is $2. But a few days later, you pay off the $998 balance and now have the $1,000 credit line available again.
A few days later, you charge $1,000 in home repairs on the same credit card.
In the span of a single billing cycle, you put nearly $2,000 worth of expenses on your credit card, even though your credit limit was half that amount. Thus, credit cycling is a strategy for increasing your spending power without requesting a credit line increase from the issuer
This example was sourced from [nerd wallet](https://www.nerdwallet.com/article/credit-cards/what-is-credit-cycling#)
Thank you for the example, I didn't know that this was a problem, it's very surprising.
So if my credit limit is 1000, I should stop using that card in that billing cycle after I use the 1000, even if I fully/partially paid for it?
When I log into my Discover account and click on the Make a payment button, some additional information will be shown. Underneath the Payment Amount, I can click +Show Oustanding Statement Balance, and this will show the Last Statement Balance minus any Payments. That's the amount left that you want to pay, because if that is paid off by the due date, then you will not pay interest.
Thank you so much, exactly what I was looking for.
I had assumed I paid everything, but turns out one of the payments was in the day of the statement so it didn't count as I thought. Thank you
Statement Balance by due date.
Probably the only way to figure out how much remains after making a partial payment is to subtract any payments posted from the Statement Balance.
You can just pay the statement balance before the due date as mentioned above….
You can set up an automatic payment each month to pay for the statement balance. Or, you can just make multiple payments through the month on your own. This might be ideal if your credit limit is lower than your spending. Either way, try not to run a balance. Just make it a habit and use your credit cards like debit cards if you want to avoid paying interest and improve your credit score.
Thank you. My plan is to use it as a credit card and pay it off fully each month. The low limit is kind of limiting the use, hopefully soon I can increase the balance.
What is your credit limit? If it is low, just make payments as soon as you have a balance on your card. For example, after making a $300 purchase, once that transaction is posted, just pay it off right away. That way, it will be a bit more flexible for you. If you keep doing that for a while, Discover may increase your limit on their own. Or, you can ask for a credit limit increase after a while. It is a hassle. But, Discover or any other company needs to see your credit history to determine whether they want to give you more credit or not. Good luck!
Statement balance.
Discover won't automatically track your mini payments so stop doing them in the future. For this month you'll just have to do the math.
If you pay your statement balance every time you get a bill, you will never pay interest. If you pay less than the statement balance, you will pay interest.
You just need to pay the statement balance every month before the due date. There’s no reason to pay more than once a month.
I had a low limit which forced me to pay off some of it multiple times, but hopefully I will start paying once a month, thank you.
That’s called cycling and the credit card companies do not like that.
Oh I didn't know that, thank you for letting me know. That is not something I normally do, it was just a circumstance, thank you
Credit cycling isn’t initially bad just as long as you pay it back, you can use your credit again in the same billing cycle. Just gotta be careful some issue may close your credit card because of it because they deem it as a “risk” their problem ig but if you have good credits and always pay your bill off, they shouldn’t do that. Here’s an example explaining credit cycling Let’s say the limit on your credit card is $1,000. At the beginning of the month, you buy new tires that cost $998. That means the available credit left on your card is $2. But a few days later, you pay off the $998 balance and now have the $1,000 credit line available again. A few days later, you charge $1,000 in home repairs on the same credit card. In the span of a single billing cycle, you put nearly $2,000 worth of expenses on your credit card, even though your credit limit was half that amount. Thus, credit cycling is a strategy for increasing your spending power without requesting a credit line increase from the issuer This example was sourced from [nerd wallet](https://www.nerdwallet.com/article/credit-cards/what-is-credit-cycling#)
Thank you for the example, I didn't know that this was a problem, it's very surprising. So if my credit limit is 1000, I should stop using that card in that billing cycle after I use the 1000, even if I fully/partially paid for it?
When I log into my Discover account and click on the Make a payment button, some additional information will be shown. Underneath the Payment Amount, I can click +Show Oustanding Statement Balance, and this will show the Last Statement Balance minus any Payments. That's the amount left that you want to pay, because if that is paid off by the due date, then you will not pay interest.
Thank you so much, exactly what I was looking for. I had assumed I paid everything, but turns out one of the payments was in the day of the statement so it didn't count as I thought. Thank you
Statement Balance by due date. Probably the only way to figure out how much remains after making a partial payment is to subtract any payments posted from the Statement Balance.
Thank you.
You can just pay the statement balance before the due date as mentioned above…. You can set up an automatic payment each month to pay for the statement balance. Or, you can just make multiple payments through the month on your own. This might be ideal if your credit limit is lower than your spending. Either way, try not to run a balance. Just make it a habit and use your credit cards like debit cards if you want to avoid paying interest and improve your credit score.
Thank you. My plan is to use it as a credit card and pay it off fully each month. The low limit is kind of limiting the use, hopefully soon I can increase the balance.
What is your credit limit? If it is low, just make payments as soon as you have a balance on your card. For example, after making a $300 purchase, once that transaction is posted, just pay it off right away. That way, it will be a bit more flexible for you. If you keep doing that for a while, Discover may increase your limit on their own. Or, you can ask for a credit limit increase after a while. It is a hassle. But, Discover or any other company needs to see your credit history to determine whether they want to give you more credit or not. Good luck!
Statement balance. Discover won't automatically track your mini payments so stop doing them in the future. For this month you'll just have to do the math.
Thank you
If you pay your statement balance every time you get a bill, you will never pay interest. If you pay less than the statement balance, you will pay interest.