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Moving Away from the CC

November 11th, 2011 at 11:07 am

If you remember my last post, Our Credit Card Usage - Your Input?, you'll recall that we are not exactly happy with our method of usage. We have been using the credit card to pay for everything. And then we pay it off. However, it has shown to be an issue sometimes when it comes to pay the card. Such as last night.

Last night, there were no more pending transactions, so I paid the balance. However, today I check, and there is a balance of $85.67. Which is the total of the most recent transaction, sans the payment from last night. So, thinking Chase may have made a mistake, I download all my transactions and past into Pages, then get the sum for all transactions. Nope, turns out to be -85.67. So Chase is not to blame entirely. However, as it is shown on my account statement, the payment comes in after the transaction. And, remember, the transaction was posted when I made the payment. Not pending. So it looks like it takes some time for their system to show an updated balance after the transaction goes through. Strange.

Granted, I should know exactly how much the payment should be. I was doing this initially. However, I have since stopped. Why? Not too sure. Possibly because of all of the changes in our life recently, and taking on new responsibilities myself.

I am thinking that we will no longer use the credit card for absolutely everything. We will use it on items that are included in the 5% revolving categories, as well as monthly fixed payments. Unfortunately, most of my bills are paid from my checking account (because they do not accept credit cards), so we will definitely not be getting as many rewards points. However, I must remember - rewards points are just a gimmick. A tool used to get you to spend money. So, if I focus on the rewards points, rather than keeping our finances simple, then I will lose track.

Wish us luck! Smile

4 Responses to “Moving Away from the CC”

  1. snafu Says:

    An alternate...carefully reviewing your Chase CC statement on-line or snail mail version to note 'cut off,' billing and due dates remembering they do very slightly from month-to-month. Pay the current Billing Balance at least two business days before the stated Due Date. You are using Chase money without cost, no fee no interest will be charged so long as they get the payment credited on your account before the Due date. If you fail to pay on time, Chase charges interest back to the date of original charge.

    If you feel there is a possibility of overspending, track your balance on-line or note spending on your calendar.

  2. Frgal Says:

    I track every penny of spending, and round to nearest dollar. Have never gotten to or past a payment due date, as we pay far in advance.

    It just is not viable anymore, with how much time we are spending on it. Thus, I will only be using it for fixed expenses and 5% categories.

  3. BuckyBadger Says:

    I meant to ask on your other thread, but why are you paying off the card every two weeks? I feel like this may be why it is taking you so much time and effort.

    The benefits of using credit cards for people who are already good at managing money is that you get the rewards, and that you get the use of your money for the month during which you are using someone else's money.

    I wonder if your unusual payment plan is what is making the use of the credit card so difficult for you. If you are looking at the website in the middle of a billing cycle you'll see a lot of stuff that isn't "set" yet. Holds, pending charges, etc. If you look at a STATEMENT, which is what you get after your billing cycle is over, you'll see what was actually charged.

    I look at the website once or twice during the month to make sure that nothing weird is going on, or to make sure that any returns were credited, but other than that, I don't worry about anything until I get the actual statement.

    Maybe you could try paying your bill on a more normal bill-paying schedule for a few months and see if that helps you manage the card? Remember, you only owe the statement balance. You do NOT owe the "pending" or "current" balance. Those are charges made after the billing date, and you will pay those in your NEXT billing cycle.

    It's just a shame to lose the rewards. We put positively EVERYTHING on our cards, and we make hundreds of dollars back every year. It's a great system for those of us who use credit cards only to charge things that we can already pay for.

  4. Frgal Says:

    I agree that it is a great system. The reason I pay so often (sometimes even once a week) because our limit is so low.

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