CLI Question

[CS800]

I always PIF my credit cards but was wondering if it would hurt my chances for a CLI since I dont carry any balance and always pay before the statement cuts?

Do CC companies like to see some revolving balance?

[RockinRay]

In the CC business, you are considered a "dead-beat" since you PIF.

Let $1.00 roll...... What the heck, it will not cost you much in interest...  LOL

I am sure they like to see the revolve, they make money this way. But, remember they also make money on the original transaction. My attitude is they can have their cake, but they cannot eat it too.

Ray

[Anonymous]

I always thought CC companies prefer customers that PIF. They are very low risk.

If you have a customer that always carries a balance and is paying less than they charge a month, well it is only a matter of time before they hit their credit limit, then might not be able to afford the payment and get in trouble. The CC company can make a good amount on interest, but there is a higher risk of this person defaulting.

If you have someone who always pays in full, the CC company makes money off the transaction, and since the customer never carries a balance, there is never a fear of this particular customer running up such a high balance and not be able to pay it off. The CC company might not make any on interest, but this is someone they can count on to produce a steady stream of revenue from each transaction with low risk.

[CS800]

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@Anonymous wrote:

I always thought CC companies prefer customers that PIF. They are very low risk.

If you have a customer that always carries a balance and is paying less than they charge a month, well it is only a matter of time before they hit their credit limit, then might not be able to afford the payment and get in trouble. The CC company can make a good amount on interest, but there is a higher risk of this person defaulting.

If you have someone who always pays in full, the CC company makes money off the transaction, and since the customer never carries a balance, there is never a fear of this particular customer running up such a high balance and not be able to pay it off. The CC company might not make any on interest, but this is someone they can count on to produce a steady stream of revenue from each transaction with low risk.

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I thougt so too but Ray has a good point also. If I PIF, they domt get any interest from me.

I ran about $400 on my Discover and always PIF before statement cuts.

So i'm hoping in 6 month for an auto CLI