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Clarification on specific CC/Credit questions

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itpromike
New Contributor

Clarification on specific CC/Credit questions

So Iv'e been parusing this board as well as a few others on other sites and there are some conflicting points of information that I'd love to get answered. So without further adue, here they are. If you have any or all of the answers please chime in, thanks! Smiley Happy

 

1.) When PIF (pay in full) each month is mentioned does that mean literally at the end of each month or does that mean just paying in full when your statement is due?

2.) Piggybacking on the above question, when is it best to pay off your card? Your balance/activity isn't posted to your CR immediately so is it better to wait until it's actually posted to your CR before you pay it or does it matter? The reason I ask is because if it never gets posted to your CT because you pay it off so quickly then how does it count toward positive payment history; wouldn't it look the same as 'sock drawering' your card?

3.) Is it true that if you get a pre-approval letter this means that when you call in to take advantage of that offer, it won't result in a HP?

4.) Is it true that store cards only perform SP? Are there exceptions to this?

5.) How many inqueries does it take before it negatively affects your credit? I've heard that only more than 3 to the same CRA within a year. I've also heard 3 or more (so even the 3rd one affects it) within a year. 

 

Hopefully these aren't dumb questions, like I said I've said; I have seen some conflicting info so I'm just trying to clarify some things. Thanks!


Current Score: TransUnion (820) Equifax (818) Experian (823)
Message 1 of 7
6 REPLIES 6
gdale6
Moderator Emeritus

Re: Clarification on specific CC/Credit questions


@itpromike wrote:

So Iv'e been parusing this board as well as a few others on other sites and there are some conflicting points of information that I'd love to get answered. So without further adue, here they are. If you have any or all of the answers please chime in, thanks! Smiley Happy

 

1.) When PIF (pay in full) each month is mentioned does that mean literally at the end of each month or does that mean just paying in full when your statement is due? By statement due date or by statement cut day if want them to report 0 balance to the CRA

 

2.) Piggybacking on the above question, when is it best to pay off your card? If not apping for credit in next 45 days or so let the statement cut and then PIF before due date. If going to app PIF before the statement cycle date. Your balance/activity isn't posted to your CR immediately so is it better to wait until it's actually posted to your CR before you pay it or does it matter? See above answer

The reason I ask is because if it never gets posted to your CT because you pay it off so quickly then how does it count toward positive payment history; wouldn't it look the same as 'sock drawering' your card? Creditors still see the payments made to the account

 

3.) Is it true that if you get a pre-approval letter this means that when you call in to take advantage of that offer, it won't result in a HP? False, all will result in a HP.

4.) Is it true that store bcards only perform SP? Are there exceptions to this

 

Message 2 of 7
itpromike
New Contributor

Re: Clarification on specific CC/Credit questions


@gdale6 wrote:

@itpromike wrote:

So Iv'e been parusing this board as well as a few others on other sites and there are some conflicting points of information that I'd love to get answered. So without further adue, here they are. If you have any or all of the answers please chime in, thanks! Smiley Happy

 

1.) When PIF (pay in full) each month is mentioned does that mean literally at the end of each month or does that mean just paying in full when your statement is due? By statement due date or by statement cut day if want them to report 0 balance to the CRA

 

2.) Piggybacking on the above question, when is it best to pay off your card? If not apping for credit in next 45 days or so let the statement cut and then PIF before due date. If going to app PIF before the statement cycle date. Your balance/activity isn't posted to your CR immediately so is it better to wait until it's actually posted to your CR before you pay it or does it matter? See above answer

The reason I ask is because if it never gets posted to your CT because you pay it off so quickly then how does it count toward positive payment history; wouldn't it look the same as 'sock drawering' your card? Creditors still see the payments made to the account

 

3.) Is it true that if you get a pre-approval letter this means that when you call in to take advantage of that offer, it won't result in a HP? False, all will result in a HP.

4.) Is it true that store bcards only perform SP? Are there exceptions to this

 


Thanks for the info mate. Your answer for #4 didn't come through, or did you list that by mistake?


Current Score: TransUnion (820) Equifax (818) Experian (823)
Message 3 of 7
itpromike
New Contributor

Re: Clarification on specific CC/Credit questions

Anyone else have any wisdom to chip in? Any ideas on #4 or #5?


Current Score: TransUnion (820) Equifax (818) Experian (823)
Message 4 of 7
Involver
Valued Contributor

Re: Clarification on specific CC/Credit questions

4. If you are pre-approved for a Comenity bank account (shopping cart trick) then it should be a SP. Cold apps for store credit will still be HPs.

5. INQs theoretically hurt your score at 2 or more, however they are only 10% of the scoring algorithm and arent generally a major consideration for new credit unless you are really going crazy with them within 6 months, or if you app with Barclays lol. They will count towards your FICO score for one year but can still be seen by lenders for two.
Message 5 of 7
CreditMagic7
Mega Contributor

Re: Clarification on specific CC/Credit questions

[ "or if you app with Barclays lol" ]

+1

I can confirm that statement as fact. My bad for even considering a Barclay's on an app spree.
Message 6 of 7
itpromike
New Contributor

Re: Clarification on specific CC/Credit questions


@Involver wrote:
4. If you are pre-approved for a Comenity bank account (shopping cart trick) then it should be a SP. Cold apps for store credit will still be HPs.

5. INQs theoretically hurt your score at 2 or more, however they are only 10% of the scoring algorithm and arent generally a major consideration for new credit unless you are really going crazy with them within 6 months, or if you app with Barclays lol. They will count towards your FICO score for one year but can still be seen by lenders for two.

Thanks for the info! I was thinking about going for a Barclays card at some point... maybe I won't now. I wonder why Barclays are so funky on your CR's...?

 

Can you point me to where I can find info abou the shopping cart trick? I've heard it mentioned several times around here but I haven't seen any posts explaining them. Thanks mate!


Current Score: TransUnion (820) Equifax (818) Experian (823)
Message 7 of 7
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