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Valued Member
blackjack59
Posts: 38
Registered: ‎12-18-2008

Need Clairifcation When To PIF Credit Card

Is it best to pay credit card when the statement cuts or before it cuts for better scores?Thanks In Advance!
Senior Contributor
UpUpUp
Posts: 3,017
Registered: ‎06-03-2008

Re: Need Clairifcation When To PIF Credit Card

For better scores? Then you want to pay BEFORE statement cuts so that the banks report a 0 or very small balance to the credit bureaus for optimum scoring. And, you really need to play around with this. My chase card had already reported a small balance this month and I accidentally let my Discover card report a $10 balance. Don't you know that 10 bucks took my scores down 10 points!  Argh...
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mjbfan79
Posts: 1,998
Registered: ‎03-31-2008

Re: Need Clairifcation When To PIF Credit Card


blackjack59 wrote:
Is it best to pay credit card when the statement cuts or before it cuts for better scores?Thanks In Advance!

 

PIF before the statement cuts. If you have a few cards just only let one report no more then 10% of your CL.

Starting Score 3-31-08: EQ 582 TU 577 EX 625
Current Score 3-19-10: EQ 703 TU 712 EX No Clue
Goal Score: 800 By January Of 2012


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Valued Contributor
mjbfan79
Posts: 1,998
Registered: ‎03-31-2008

Re: Need Clairifcation When To PIF Credit Card


UpUpUp wrote:
Don't you know that 10 bucks took my scores down 10 points!  Argh...

 

Get out of here I been caring balances on most of my cards for the last 6 months wondering why my scores didn't change much. I'm gonna see how things change up cause I have 12 accounts I'm only gonna let one report a small balance.

 


Starting Score 3-31-08: EQ 582 TU 577 EX 625
Current Score 3-19-10: EQ 703 TU 712 EX No Clue
Goal Score: 800 By January Of 2012


Take the FICO Fitness Challenge
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Need Clairifcation When To PIF Credit Card


mjbfan79 wrote:


UpUpUp wrote:

Don't you know that 10 bucks took my scores down 10 points!  Argh...

 

Get out of here I been caring balances on most of my cards for the last 6 months wondering why my scores didn't change much. I'm gonna see how things change up cause I have 12 accounts I'm only gonna let one report a small balance.

 



lol, you'll love the result, but you'll get addicted to the new higher numbers pdq.

Then you can be a score-torturer like the rest of us! :smileyvery-happy:

Seriously, though, I think my lenders are reassured to not see balances on my cards. But they all get a good work-out during the month. We'll see what happens. I certainly don't think that I'm immune from bank craziness.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Member
blackjack59
Posts: 38
Registered: ‎12-18-2008

Re: Need Clairifcation When To PIF Credit Card

Thanks to all for that imformation.So is it also true that if i pif before the statement cuts i pay no interest or very little?
Established Contributor
Posts: 739
Registered: ‎06-30-2007

Re: Need Clairifcation When To PIF Credit Card

the only advantage paying before the statment cut down number of accounts balances if geting ready to apply for credit, it will boost your score

 

otherwise cutiing 20- 25 off yor free loan, not woth the troubl.

People say "Only apply for credit you NEED"

I say "apply for credit you have PRATICAL use of"

I don't have AMEX card because I don't want a card that suffers from PMS
Senior Contributor
UpUpUp
Posts: 3,017
Registered: ‎06-03-2008

Re: Need Clairifcation When To PIF Credit Card


mjbfan79 wrote:

UpUpUp wrote:
Don't you know that 10 bucks took my scores down 10 points!  Argh...

 

Get out of here I been caring balances on most of my cards for the last 6 months wondering why my scores didn't change much. I'm gonna see how things change up cause I have 12 accounts I'm only gonna let one report a small balance.

 


Yep. 10 freakin dollars. I was so mad!  I'm glad my mortgage LO pulled before Discover reported! I seriously get the best scores when I let one card report LESS than $5. Yep, I can report $5 for my best score. How silly. And, this is $5 on $8000 CL....so it's not like it's even close to 1%. Like Hauling says, once you realize your sweet spot it becomes torture to make sure all falls into place. Hehe.

Senior Contributor
UpUpUp
Posts: 3,017
Registered: ‎06-03-2008

Re: Need Clairifcation When To PIF Credit Card


rbbyrbsn wrote:

the only advantage paying before the statment cut down number of accounts balances if geting ready to apply for credit, it will boost your score

 

otherwise cutiing 20- 25 off yor free loan, not woth the troubl.


To some extent I agree. No need to be a freak about it if you aren't applying for credit. However, with the economy the way it is and banks chopping credit limits and closing accounts left and right I think it's a lot safer to pay before the statements cuts particularly if you put a lot of $ through your cards each month. I put a few thousand through my chase card every month and would never let that report!

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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Need Clairifcation When To PIF Credit Card


blackjack59 wrote:
Thanks to all for that imformation.So is it also true that if i pif before the statement cuts i pay no interest or very little?

If you PIF before your due date, you pay no interest.

If you PIF before your statement date, which comes even earlier, generally 2-3 weeks or so earlier, you naturally pay no interest, and you have the benefit of the $0 balance reporting.

Yes, the thought used to be that this was only useful when you were getting ready to app, but I know that in these days, I like having that string of zeroes showing as balances on my credit reports. (Do make sure that one account shows a minimal balance of $10-20, and once it reports, immediately pay it off. Most people lose points for all revolving accounts reporting $0; I know I did.)

If a balance reports, even if you pay it immediately before it's due, other creditors can't tell if you paid or if you're carrying debt.

It's like the old joke about two hikers being chased by a bear. You don't have to be able to outrun the bear; you just have to be able to outrun the other hiker. :smileywink:
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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