PIF Vs 0% APR.

[amakol]

Applying this to my own situation, I have two 0% promos right now:

Citi - 1700/3500, up in Aug 2014, paid a bit over minimum first 3 months (high balance 2000-2100) and then around 100 dollars per month last 3

BofA - 1200/2500, up in Nov 2014, ran up too much by accident (1950) so paid 750 first payment, 2nd payment due by the end of February

That gives ~ 48% each card. The other 4 in my sig are PIF cause of high APRs plus I'm never putting a balance on Amex. I generally always PIF.

Am I screwing up CLI chances in the future with Citi (original >50% util, near minimum payments) or BofA (first statement 78% util)? Can I fix it? Should I just avoid the mess and get down to 25% on each card? Pay it all off?

Thought it would be nice to get the cards up to 50%, pay 100 per month after, and then PIF the month before each promo ends. Basically an upfront 12 month loan at no interest. But, it seems more complicated than I know and I don't want to do any damage to any of my tradelines long-term, or making anyone nervous and getting a CLD.

Appreciate any and all help.

[longtimelurker]

So.... if you pay just the minimum, you can potentially earn some money with the money you are not paying unneccesarily early (either as simple as interest in a savings account, or using it for some more profitable opportunity).  And the downside: perhaps you will not get a CLI (at all, soon, as much).

But that comes back to my main question I keep asking: what exactly is the value of a CLI (or card "growing with you") as compared to getting new cards later on with more appropriate limits.   My answer is almost zero, except in the cases:

1) Where you have a very useful cards you need to pay several times a month.  Then a CLI is time-saving.

2) Getting a CLI would sufficiently increase your score so that you can get a better rate on a mortgage.   But, I'm not sure this is a real case: by the time you want a big loan, you should be able to control utilization yourself.  If you owe more than you can pay on a credit card, getting a mortgage may not be the best idea.

[Plasticard]

In regards to your question of the value of a CLI, personally I would rather have some of my older cards that I like to continually grow vs constantly applying for new cards. Reason for this being, I don't want to continually have new tradelines and adding/closing existing cards. I know closed cards stay on reports for up to 10 years, but once gone all that history is gone as well that you can never get back. 

In my case, higher limits just help with utilization. On 3 of my current 0% promo cards(Freedom, It, and TYP), I've had balances on them right from the getgo up to now, 12 months later, not counting Citi which is only 2 months old. Thru this time, I've received a CLI on Freedom and 3 clis on Discover. Been averaging payments of $150-$200 a month vs just paying the $45 minimums. Everytime I received a CLI for either card, my uti on them were always reporting 50-60%. Since everything in the credit world is ymmv, for me I haven't had to play the always pay in full let 9% report game to get clis. Of course once the promo is over, everything will be paid off to avoid interest. 

[DaylightSlaving]

I'd suggest just paying in full dude. It's too easy to go from being "a PIF guy" to, "I was a PIF guy, but then life happened.."

[Plasticard]

Oh I definitely agree with paying in full. All my other cards without 0% promos get paid every month, or at least paid bigger chunks of payments. 

[amakol]

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@longtimelurker wrote:

So.... if you pay just the minimum, you can potentially earn some money with the money you are not paying unneccesarily early (either as simple as interest in a savings account, or using it for some more profitable opportunity).  And the downside: perhaps you will not get a CLI (at all, soon, as much).

But that comes back to my main question I keep asking: what exactly is the value of a CLI (or card "growing with you") as compared to getting new cards later on with more appropriate limits.   My answer is almost zero, except in the cases:

1) Where you have a very useful cards you need to pay several times a month.  Then a CLI is time-saving.

2) Getting a CLI would sufficiently increase your score so that you can get a better rate on a mortgage.   But, I'm not sure this is a real case: by the time you want a big loan, you should be able to control utilization yourself.  If you owe more than you can pay on a credit card, getting a mortgage may not be the best idea.

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Is there any value to a higher AAOA with the same cards on your report from 10 years ago vs a shorter AAOA with cards opened every few years? Everything else can be the same but AAOA could be 10 yrs vs 4, for example

[Chris679]

Personally if a lender looked down on me in any way for paying my balance each month I would look for another one.  They are in the business of making money and if you use the card and pay each month then they are making money off each transaction with very little risk to them.  Sure they could make more money with someone carrying a balance each month but that comes with the risk of the customer defaulting on that balance.