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In the lender's eyes... PIF or carry a balance?

Moderator

Re: In the lender's eyes... PIF or carry a balance?

On phone, but letting a maxed out card report a balance was the old school method as a lot of cards didn't report limits.

I don't think it matters much anymore though I still do it personally if I can. Lenders get lazy either in reviews or in their application programming, high balance set near limit, current balance near $0 at application time to my small mind shows easy use and justification for more credit, but this is completely coloring at the margins and hardly required.
Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Message 31 of 42
Member

Re: In the lender's eyes... PIF or carry a balance?


blk8 wrote:
If you don't have the 0% intro interest promo, then yes.

ahh, i do have the 0% promo so i might as well pif my statement balances and request a pif myself after 6 months.

 

~Gardening until October, 2013 ~

Starting Score: 663
Current Score: 663
Goal Score: 720


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Message 32 of 42
Member

Re: In the lender's eyes... PIF or carry a balance?


Lambo23 wrote:
Dang!!! I just paid my balance to 0$ before my first statement cut. Smiley Sad ugh

I would suggest using Blk8's method starting your second statement. I dont see why you wouldnt get the same results by month 7, ya know?

 

~Gardening until October, 2013 ~

Starting Score: 663
Current Score: 663
Goal Score: 720


Take the myFICO Fitness Challenge
Message 33 of 42
Valued Contributor

Re: In the lender's eyes... PIF or carry a balance?

@blk8 wow. Thanks for this advice! I just got my new chase cards so I will definitely be trying out this method!

Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+
Message 34 of 42
Valued Contributor

Re: In the lender's eyes... PIF or carry a balance?

Always PIF if you can.

 

As others have stated, they make swipe fees from the transaction. No card issuer will go hungry! 

Ray

** Every Card has a Job, and Every Card does its Job **
Message 35 of 42
Frequent Contributor

Re: In the lender's eyes... PIF or carry a balance?

The thing with blk8's method is that it takes away from being able to use the card for everyday purchases. Or am I totally misunderstanding what he means?
I take it like this:
Month 1: I use my card for $400 in total charges. Statement: $400
Month 2: I pay half of my statement balance and can't use the card. Statement: $200
Month 3: pay the rest to 0$ balance and don't use the card. Statement: $0
Month 4: can finally use my card and charge another $400.
Month 5: pay half. No card use. Statement: $200
Month 6: pay the rest to $0. Don't use card again. Statement: $0
Month 7: auto CLI.

Correct? Or am I way off?
Message 36 of 42
Member

Re: In the lender's eyes... PIF or carry a balance?

I think he meant pay half of the total balance, not the statement balance but I'm not sure
~Gardening until October, 2013 ~

Starting Score: 663
Current Score: 663
Goal Score: 720


Take the myFICO Fitness Challenge
Message 37 of 42
Regular Contributor

Re: In the lender's eyes... PIF or carry a balance?


Lambo23 wrote:
The thing with blk8's method is that it takes away from being able to use the card for everyday purchases. Or am I totally misunderstanding what he means?
I take it like this:
Month 1: I use my card for $400 in total charges. Statement: $400 - ok
Month 2: I pay half of my statement balance and can't use the card. Statement: $200 - pay half but you can still use
Month 3: pay the rest to 0$ balance and don't use the card. Statement: $0 - PIF balance including what you may have used month 2
Month 4: can finally use my card and charge another $400. - ok
Month 5: pay half. No card use. Statement: $200 - pay half but you can still use
Month 6: pay the rest to $0. Don't use card again. Statement: $0 - PIF balance.
Month 7: auto CLI.

Correct? Or am I way off?

OR

 

Month 1-3 use your card as you would like

Month 4 - use 90% of your CL and PIF

Month 5 - use 90% of your CL and PIF

Month 6 - use 90% of your CL and PIF

 

Call and ask for a substantial CLI .... let them the rep know you are finding yourself having to use other cards cause the CL on your Chase card is insufficient. :-)

 



FICO: EX 662 | EQ 670 | TU 681
Message 38 of 42
Frequent Contributor

Re: In the lender's eyes... PIF or carry a balance?

^ thank you for clearing it up! Lol
Message 39 of 42
Valued Contributor

Re: In the lender's eyes... PIF or carry a balance?

Ideal usage according to several Chase credit card execs I've spoken to is heavy usage (30-40%) but never more than 50% utilization. Pay down the balance every month, but leave 3-10% revolving. Never make minimum payments. I would still advise people to PIF because paying interest just to get that little edge isn't worth it IMO.

TU FICO: 800 (2/1/14) | CK Score: 802 (2/1/14) | CS Score: 805 (2/1/14)

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Message 40 of 42