Credit Card Center Advertiser Disclosure

Reply
Contributor
Posts: 202
Registered: ‎06-30-2013
0 Kudos

IS IT OK TO NOT "PIF" EVERY MONTH?

Hi fellow myficoers,

 

My question is simple.  Is it ok to not pay in full each month but still pay way more than the minimum?  will my score continue to go up as long as i dont miss any payments?  I know that paying in full is the best way to get those glorious CLI's but what about say, pay $100 on each credit card (with 200-300 balances) each month for a year; and, at the end of that year, pay everything off except one cc (under 10% util)?

 

Will my scores continue to increase?

 

Thanks for your time yall

AUBURN                                                       Smiley Tongue


IN THE GARDEN TILL 7/1/14!!!
New Contributor
Posts: 69
Registered: ‎12-11-2011
0 Kudos

Re: IS IT OK TO NOT "PIF" EVERY MONTH?

As far as your score is concerned, there is no “memory” of how much balances you’ve kept. So, yes, your score will continue to go up, and once you pay down your balances it will be as high as though you’d always PIF’d.

 

Note, however, that you don’t get the benefits of interest-free grace periods if you do not PIF, and that you will be paying finance charges.

 

Some CC companies will be more likely to increase your limits if you PIF; others don’t mind seeing a small balance.

Contributor
Posts: 202
Registered: ‎06-30-2013
0 Kudos

Re: IS IT OK TO NOT "PIF" EVERY MONTH?


inthewoods wrote:

As far as your score is concerned, there is no “memory” of how much balances you’ve kept. So, yes, your score will continue to go up, and once you pay down your balances it will be as high as though you’d always PIF’d.

 

Note, however, that you don’t get the benefits of interest-free grace periods if you do not PIF, and that you will be paying finance charges.

 

Some CC companies will be more likely to increase your limits if you PIF; others don’t mind seeing a small balance.


 

Thanks "inthewoods"........I'm not outta the wood yet either! HA

 


IN THE GARDEN TILL 7/1/14!!!
New Contributor
Posts: 55
Registered: ‎02-27-2013
0 Kudos

Re: IS IT OK TO NOT "PIF" EVERY MONTH?

yes it's okay to not pay in full.. but you will be accumulating interest charges... by the list of cards you are having (store cards) APRs are not that cheap (16-25%).

 

p.s. some banks probably rather you not pay in full because they make moar $$... but then again, the whole reason why people are trying to get higher tiered cards are to get better rewards.. and the interest out weights rewards easily.

 

I think my point is, do what you want, as far as credit score goes, doesn't matter as long you pay more than minimum. But financially, it would be a good idea to pay for all of it just to advoid interest charges.

CSP 10k 0 Discover It 7.8k AmazonVisa 3k Freedom 1500 US Bank Cash Rewards 1500 BofA123 3300 SallieMae 3800
Contributor
Posts: 202
Registered: ‎06-30-2013
0 Kudos

Re: IS IT OK TO NOT "PIF" EVERY MONTH?

thanks rusty!


IN THE GARDEN TILL 7/1/14!!!
Epic Contributor
Posts: 29,436
Registered: ‎10-23-2007
0 Kudos

Re: IS IT OK TO NOT "PIF" EVERY MONTH?

I say yes you can carry a balance that's what credit cards were invented for... IF you can pay in full or if you only use credit cards for interest or some kind of purchase protection... if you are not paying in full then you are canceling out your rewards and if you can afford to PIF but pay interest because you think it builds score better... it's rare that that holds true and it would not be my choice.

Do your best to pay in full or as fast as you can and don't beat yourself up if you have to carry a little bit Smiley Happy

Valued Contributor
Posts: 2,017
Registered: ‎01-23-2013
0 Kudos

Re: IS IT OK TO NOT "PIF" EVERY MONTH?

+1 on what others have said.

 

I often do what OP is proposing, not PIF, but pay three or four times the minimum. As long as my balances keep dropping and AAoA keeps growing, my score goes up.

 

There are some cards that definitely prefer to see balances when deciding whether to give CLIs. Discover and Barclays are two that seem to be more generous when you run balances.

 

OP, one thing to consider though is if you're going to do this, it's best to do it only with a minority of your cards. Having all or most of your cards reporting with balances is one of those things FICO doesn't like. You will get dinged even if the amounts are small. So if you have 9 cards, don't let more than 4 report, if you have 5 cards, don't let more than 2 report and so on.

 

We're not talking about the best way to get a high score, just the best way to run balances without too much hurt.

 

Valued Contributor
Posts: 3,021
Registered: ‎02-09-2012
0 Kudos

Re: IS IT OK TO NOT "PIF" EVERY MONTH?

By not PIF'ing, you QUICKLY lose the value of the miles/points/cash back % you signed-up for.

5/2012: 560 credit scores across the board
12/2014 750+
3/2017 780+
5/2017 800+
Super Contributor
Posts: 15,196
Registered: ‎04-22-2013
0 Kudos

Re: IS IT OK TO NOT "PIF" EVERY MONTH?


Gunnar419 wrote:

+1 on what others have said.

 

There are some cards that definitely prefer to see balances when deciding whether to give CLIs. Discover and Barclays are two that seem to be more generous when you run balances.

 


 


While that may be the case, it's certainly not a reason not to PIF!  (Increasing your CL so that you can charge more and pay more interest only helps the banks.)  The only reasons to carry an interest charging balance are a) if you really cannot PIF and you need the things you purchased, or b) unlikely, but if you can get a better rate of return on your money.

 

 

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.