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I basically use three different credit cards and I usually have a credit balance on all of them. Once in awhile AMEX will send me a check to zero out the balance if I'm not actively using it but otherwise I'm essentially pre-paying for my purchases, almost like lay-away.

Aside from the opportunity cost of my cash, are there any other issues that are good or bad about doing this? I know that one of the factors in credit reporting is utilization (outstanding balance divided by total credit) so I usually have a negative utilization. I don't believe that it's negatively impacting my credit score as it is over 800.

I also maintain credit balances on my utilities. For me the peace of mind that I can skip a payment or two outweighs the nominal interest I might make on my cash balance.

Any thoughts on this?
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