Does making payments several times a month instead of lump payment help?

2 years ago

Sun Nov 27, 2022 3:22 pm

Credible

Seasoned Rebel

Credible has been gardening for over 2 years.
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I don't know anything about credit unions, but when it comes to your credit reports and scores making 1 payment a month or several should make no difference; in credit reporting the date of last payment, size of last payment, and minimum payment due are all reported, as well as the current balance and the credit limit of the loan. Only the last reported balance and credit limit factor into your scores. The number of payments made a month is not reported, and the size or date of last payment on open current accounts is not a scoring factor.

2 years ago

Sun Nov 27, 2022 4:59 pm

Cassie

DeveloperLoves long talks on the beach

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NoMoneyNoHoney wrote: ↑Sun Nov 27, 2022 3:06 pm ...if I can figure out what my internal score is w/ these banks, and maximize this, maybe I can get another 0% balance transfer credit card or maybe a line of credit?

I think you're on to something there with lender internal scoring. I've long thought about this as it relates to CLIs and how much they decide to give and when. Your guess is as good as mine when it comes to how best to play it, though. These 2 might be treated the same for internal lender algorithms:

Make a payment every week
Make a large payment within a few days of statement closing

Another thing I do is check my FICO score each month in their portal, just in case that's being recorded somewhere. (How concerned is this person about their credit score?) @Credible already provided the answer as to why none of these payment actions influence our credit scores - FICO 8 and mortgage scores are only looking at the most recent statement balance anyway.

2 years ago

Sun Nov 27, 2022 10:40 pm

BrutalBodyShots

Senior AdministratorGoodwill Saturation Technique Author

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Number of [on-time] payments is not a scoring metric so it doesn't need to be focused on. Some free sites like Credit Karma display this and promote it as if it matters which misleads people to believe that it's a scoring metric, but it is not.

Making 1 monthly payment is all that is required. Anything additional doesn't help a score or "build" credit any faster or better.

2 years ago

Tue Nov 29, 2022 4:45 pm

ptatohed

Seasoned Rebel

NoMoneyNoHoney wrote: ↑Sun Nov 27, 2022 3:06 pm If you split a minimum payment of $600 into 3 different $200 payments over the course of a month, does this help your credit rating at all?? Does it create a history of more "on time payments"? How about with loans?? Also does anyone here bank have detail analysis of how Navy Federal Credit internal scoring system works?? Or patelco credit union?? My trans credit rating is horrible (580) but if I can figure out what my internal score is w/ these banks, and maximize this, maybe I can get another 0% balance transfer credit card or maybe a line of credit? See my other threads for details on my situation. thanks!!

If you are carrying a balance, this method can help you reduce interest charges but it shouldn't change your credit score.

2 years ago

Wed Mar 15, 2023 5:20 pm

Birdman

Primer AuthorCo-Founder

Birdman has been gardening for over 2 years.

Level30 Last INQWednesday, March 2, 2022 Gardening For2 years, 6 months, 5 days, 20 hours, and 55 minutes Next Level in24 days, 3 hours, and 5 minutes on October 2nd INQ 1yr onThursday, March 2, 2023 INQ 1yr reached1 year, 6 months, 5 days, 20 hours, and 55 minutes ago INQ 2yr onSaturday, March 2, 2024 INQ 2yr reached6 months, 5 days, 20 hours, and 55 minutes ago

Yes, making multiple payments does not build score. As long as no delinquent payment is made it accrues as positive payment history, whether a payment is made or not.

As for navy’s internal scoring, we can determine certain things from the reason statements given in letters. We know direct deposit helps, having money in the account helps, membership time helps, multiple products with them helps. Basically, anyone who has sought credit and got reasons back, those reasons can be used to try to decipher how to optimize.