4 ms·

Why though? Are you actually paying the full statement balance in time each month this way and this avoiding interest charges? If so, then by paying before the

Why though? Are you actually paying the full statement balance in time each month this way and this avoiding interest charges? If so, then by paying before the due date you're giving away money unnecessarily, especially with interest rates at 5% now.

michaelmior 3y ago
Not the OP, but the most likely reason I can think of is manual payments give an opportunity to review all charges. But still having the minimum set to autopay ensures that if you forget or unable to, the consequences are less severe.
- Rapzid 3y ago
  Yes this is exactly it. I like to review stuff and typically don't keep a large cash balance. An expensive month could 5x or more my spend; maybe I just paid for an overseas vacation, my home owners and auto insurance is hitting, and whatever all in the same month. Want to make sure everything is in place before kicking off the payments.
- alexfoo 3y ago
  I do as the GP, autopay the minimum to avoid fines (not just interest) but then go in and pay the remaining balance before the end of the month. Autopaying the full amount would work 95% of the time, except when I put something like a big holiday on my card and autopay pays the entire balance and the payment either fails because I forgot to have sufficient funds in my debit/checking account, or leaves me with very little whilst I wait for the money that was going to come in to pay for it.
- lolinder 3y ago
  But if you're going to check it every month anyway, why have the backstop be the minimum payment and not the full payment? You don't lose the right to dispute a charge just because autopay paid the statement off, and setting it to pay in full means you won't be charged any interest at all if you forget to check one month.
  - Sohcahtoa82 3y ago
    If I autopay the full amount before realizing there's a fraudulent $1,000 charge on my card, then I'm in for a surprise when an extra $1,000 is missing from my checkout account. A pending fraudulent charge on my credit card isn't a problem. Cash missing from my bank account until the investigation is complete CAN be a problem.
    - sagarkamat 3y ago
      But there are usually 25 days between when a statement is generated and an Autopay is deducted for that statement. Just have your checkup of the statement scheduled between those 25 days
- Golden_Wind123 3y ago
  Most credit cards pull the auto-payment either on the due date or the day before, which means that you have ~1 month to check your statements and file disputes/disable autopay in the event of anything unusual.
- oh_sigh 3y ago
  I used to review charges, and it was always a pain. I know where I shop and don't shop, so if I see a charge for a place I don't shop, it is clearly fraud. But, a lot of fraud happens where you shop(because that is where people may have access to your card). That is, I gas up at Shell, but did I really gas up 23 days ago? Now, I have a text message/app notification come through immediately whenever there is a charge > $0.00 (chase at least supports this). Reviewing immediately, and then knowing that all charges are real at the end of the month, has been a real pleasant change in that workflow.
  - pertique 3y ago
    This is what I do, and I'm surprised that more people don't. It's trivial to clear text or email notifications when you make the purchase as they usually appear very quickly. Plus it makes it very easy to identify fraud. Get a notification that your card was used at a gas station when you're in bed at 11pm and last filled up 5 days ago? Probably not legitimate. Plus, if you trust your CC company, it saves you from having to review your charges at statement close.

michaelmior 3y ago

Not the OP, but the most likely reason I can think of is manual payments give an opportunity to review all charges. But still having the minimum set to autopay ensures that if you forget or unable to, the consequences are less severe.

Rapzid 3y ago
Yes this is exactly it. I like to review stuff and typically don't keep a large cash balance. An expensive month could 5x or more my spend; maybe I just paid for an overseas vacation, my home owners and auto insurance is hitting, and whatever all in the same month. Want to make sure everything is in place before kicking off the payments.
alexfoo 3y ago
I do as the GP, autopay the minimum to avoid fines (not just interest) but then go in and pay the remaining balance before the end of the month. Autopaying the full amount would work 95% of the time, except when I put something like a big holiday on my card and autopay pays the entire balance and the payment either fails because I forgot to have sufficient funds in my debit/checking account, or leaves me with very little whilst I wait for the money that was going to come in to pay for it.
lolinder 3y ago
But if you're going to check it every month anyway, why have the backstop be the minimum payment and not the full payment? You don't lose the right to dispute a charge just because autopay paid the statement off, and setting it to pay in full means you won't be charged any interest at all if you forget to check one month.
- Sohcahtoa82 3y ago
  If I autopay the full amount before realizing there's a fraudulent $1,000 charge on my card, then I'm in for a surprise when an extra $1,000 is missing from my checkout account. A pending fraudulent charge on my credit card isn't a problem. Cash missing from my bank account until the investigation is complete CAN be a problem.
  - sagarkamat 3y ago
    But there are usually 25 days between when a statement is generated and an Autopay is deducted for that statement. Just have your checkup of the statement scheduled between those 25 days
Golden_Wind123 3y ago
Most credit cards pull the auto-payment either on the due date or the day before, which means that you have ~1 month to check your statements and file disputes/disable autopay in the event of anything unusual.
oh_sigh 3y ago
I used to review charges, and it was always a pain. I know where I shop and don't shop, so if I see a charge for a place I don't shop, it is clearly fraud. But, a lot of fraud happens where you shop(because that is where people may have access to your card). That is, I gas up at Shell, but did I really gas up 23 days ago? Now, I have a text message/app notification come through immediately whenever there is a charge > $0.00 (chase at least supports this). Reviewing immediately, and then knowing that all charges are real at the end of the month, has been a real pleasant change in that workflow.
- pertique 3y ago
  This is what I do, and I'm surprised that more people don't. It's trivial to clear text or email notifications when you make the purchase as they usually appear very quickly. Plus it makes it very easy to identify fraud. Get a notification that your card was used at a gas station when you're in bed at 11pm and last filled up 5 days ago? Probably not legitimate. Plus, if you trust your CC company, it saves you from having to review your charges at statement close.