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Why do cc companies make a limit as to how many payments you can make in a billing cycle?

V

Viper GTS

Lifer
I've been making $500+ payments out of every paycheck (biweekly) for several pay periods now, in an effort to get out of debt as quickly as possible. Unfortunately I can't make one out of this paycheck because I've already made two this billing cycle...

Why do they do this? Do they get charged for the direct withdrawals they're making out of my checking account? Or are they just trying to make me carry as much balance as possible into the next billing cycle?

:|

Granted I can just keep the money in my account until my next paycheck & make a $1,000+ payment, but I wanted to make a payment.

Viper GTS
 
Must be because on their end it adds more administration costs I guess...just save that money until next paycheck! Or blow it on liqour.
 
I'm not sure they can do that.. how can they NOT accept you paying off your debt? Now if the limit is simply how many times they will withdraw out of your checking account automatically, I could maybe see a limit because they may get charged per transaction.. However, they cannot simply not accept your payment. Did you ask them if you could send in a check?

If they still say no, tell them you want a credit for the amount of interest you will pay on that $500. This smells like a scam to me.
 
So they MAKE MONEY! You have to wait longer to pay, interest racks up.

Rather obvious if you ask me.
 


<< I don't have any checks, never have. I do everything electronically, I've never written a check in my life.

Viper GTS >>



thats the way to do it. checks are overrated and require too much of my time to write😉
 
the reason that i still write checks is that i don't want to pay somebody else to do it. If its free, okay...but otherwise I'll stick with writing the good ol' checks/having things charged to my cc
 
I can't buy alcohol yet. Got a year & a half left before I can do that.

But I'm not going to buy $500+ worth of booze.

I wouldn't mind some hard lemonade though.

Viper GTS
 


<< But I'm not going to buy $500+ worth of booze. >>

You say that now.

I am lucky that I can just make my credit card payment in person. They will take as much as I give as often as I want.
 
It's probably because it costs them money and if they disclosed the limit of 2/month they are justified. But I bet they'll say it's some anti-fraud tactic and that would let them off the hook.

Word of advice: get some checks.
 
SammySon is right. They are in the business of making money. They do that by the interest and late fees.
If you pay too often it cuts into their earnings. Some cc companies have it right in their contract that you sign how many
payments per month you can make.

ie, paying twice a month rather than once a month saves you more in finance charges/interest.

Go sign up with a credit union, they usually are less restrictive on these things.
 
They only say no more than two online payments per billing cycle, they don't say anything about a limit on paper payments.

It's not a huge deal, I've already made $1,050 worth of payments this billing cycle & will do the same in the next one. And in all honesty my payment wouldn't have made it before the cut off point anyway (if I make it on Friday it usually posts Wednesday or Thursday) so it makes no difference in how much interest I'll be paying. Besides, I have other stuff I can pay for with the cash & not have to worry about it later.

Viper GTS
 
All that time trying to get a CC and everyone warning you about cc debt and what do you do? 😉

Seriously though I expect its partly related to the charges with ACH payments and the extra work it takes to make multiple payments a month on someone's account. They will certainly accept check payments though. You're probably gonna need a checkbook once you move out to pay other bills. For example my waterbill and stuff, I don't think i can pay those electronically any way. Paperless is cool, but its just not quite possible yet, at least here in the corn fields I live in.
 
Buy a US Postal Money order. It's only $0.90 and keep your receipt.

My credit company allows up to 30 online payments a month (one per day). I guess it depends on the company.
 


<< All that time trying to get a CC and everyone warning you about cc debt and what do you do? 😉 >>



I didn't do anything, I'm just trying to raise my FICO score as high as possible. The only thing I currently have control over on my credit score is the debt/credit ratio. Other than that it's only my age, or more specifically length of credit history, & inquiries that are hurting me. I can't take the inquiries off, & I can't magically extend the length of my credit history, but I can completely eliminate my debt in fairly short order.

Viper GTS
 
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