Any 3rd party apps to auto-pay credit cards?

Submitted by svdeepak99 t3_yhe2kp in personalfinance

This is a continuation from the previous thread: https://www.reddit.com/r/personalfinance/comments/bc0hx3/any_appswebsites_similar_to_debitize/

Are there any apps similar to Debitize/SteadiPay?

Looks like Debitize was bought by another company & SteadiPay's website is down.

I am looking for an app/service that will allow me to auto-pay my credit card balance on the date that I choose (instead of only paying before the due date).

I own a Chase Sapphire Preferred Credit Card, and I want to setup an auto-pay which would pay all my balance before the statement closing date, so that I can reduce the usage that is being reported to the Credit Bureau. But however chase bank auto-pay only provides me an option to pay before the due date, which means if I fail to pay manually (before the statement date), my usage (if > 9%) would be reported to the Credit Bureau, which would affect my Credit Score.

So I am looking for an app/service which at least does one of the following:

- Allows me to auto-pay the full balance on my card, before the Statement Closing date (or) the date I choose.
- Automatically pays my total credit card balance whenever it crosses a threshold (> 9% in my case) I set (similar to SteadiPay).

- Allows me to use credit card like a debit card (similar to DEBX/Debitize), which pays my credit card balance (from my checking account) whenever I make a purchase using my credit card.

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So is there any currently existing app/service, that does any of the above mentioned points?

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retroPencil t1_iud8enc wrote

What is your knowledge about credit score reporting and usage? What you're asking for doesn't make sense to me. Are you just trying to see the number tick higher like a game? There aren't any real life benefits. Maybe I'm missing something.

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svdeepak99 OP t1_iud9dt5 wrote

You can find from this chart, how Credit Card Utilization is one of the 6 main factors in determining the credit score: https://www.asksebby.com/building-credit/850-credit-score

For further information about what I am referring to you can read the above article & watch this video: https://www.youtube.com/watch?v=kirdYUz--90

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retroPencil t1_iudaivf wrote

Can you quantify the difference between the interest rates of a 760 score vs a 830 score?

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svdeepak99 OP t1_iudav5u wrote

I don't think there should be much of a difference when the score is 750+. But there should be a difference when we are comparing the difference between scores of 630 & 730.

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cholley_doo2 t1_iud86lu wrote

auto-pay is going to let you down and the 3rd parties have no responsibility.

you will be the one on the hook when something goes wrong with auto pay

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svdeepak99 OP t1_iud8m7i wrote

Yeah, I understand that. I am paying before the statement date every month by myself. But I would still like to have a backup option, to make sure I do not miss a payment before the statement date, to avoid my credit score from dropping.

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continue_improve t1_iudca19 wrote

Use your bank's auto pay as the backup. The whole concept of artificially keeping your utilization low by paying before the report date is OK in principle but practically speaking not necessary. If your utilization is always high without prepaying (say above 30% of overall credit limit), then your credit limit is to low (or your expenses are to high). In this case you need to open more credit cards to increase your overall credit limit.

If you occasionally go above 30%, that is perfectly OK. Your score might fluctuate but will all be transient.

Keep in mind utilization is calculated based on your overall credit limit not card by card.

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svdeepak99 OP t1_iudd7n5 wrote

Thanks for your reply. I have set my bank's auto-pay as a backup as you said. And yes I need to get more credit cards to increase my credit limit. In the meantime, I am looking for tools to ensure I keep my usage low (and yes, it does not hurt the credit score as much as missing a due date does).

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No_Tension_280 t1_iudce6l wrote

With my bank I can schedule a transfer with a set amount, from account to account, on a set day. So on the 15th of each month i could automatically transfer $100 from my checking to my credit card

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ChiSquare1963 t1_iudgoo6 wrote

Consider setting up two monthly automatic payments from bank account. Gives you more control while keeping your usage low.

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ahj3939 t1_iudtgjl wrote

The cool thing about Chase is any time you pay off your balance to $0 they'll update your credit reports.

You don't want everything to report $0 because it'll actually drop your scores, but if you let a few cards report $0 it'll boost your scores.

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jypfoto t1_iuegbge wrote

Just seems completely unnecessary to do to try and keep an arbitrary number. Just keep it on auto pay, full balance, and if you start to feel uncomfortable with the balance getting high, just manually push a payment and on the payment date it’ll just pay the difference.

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