Reply
New Contributor
GABrown
Posts: 55
Registered: ‎10-23-2012
0

PIF vs. Minimum Balance!!!!

Hello All, My question is what is better PIF or minimum balance...it may seem like a rhetorical question so let me go in detail..I just received the BankAmericard Platinum Plus Visa also known as the 99/500 here on the forums and was wondering what is the best way to reflect good history and up my chance for other products and CLI in the future..any suggestions are appreciated.. oh a little history..I filed bankruptcy (chapter 13) in 09/2008 and it is due to be over in 09/2013...i have a new car loan for about 15k that is about 6 months old and just received BankAmericard 10/2012.. When last looked at my TU CR is was at 605 but now really sure what the other are and what that even means...

IN MY PURSE- BankAmericard Cash Rewards Platinum Plus Visa
IN THE GARDEN UNTIL 11/2013
TU-638
EXP-565
EQX-540
Senior Contributor
jsucool76
Posts: 3,983
Registered: ‎12-11-2011
0

Re: PIF vs. Minimum Balance!!!!

Always PIF.
;
New Contributor
GABrown
Posts: 55
Registered: ‎10-23-2012
0

Re: PIF vs. Minimum Balance!!!!

why do some people say let a little balance carry over for reporting purposes? what does that mean?

IN MY PURSE- BankAmericard Cash Rewards Platinum Plus Visa
IN THE GARDEN UNTIL 11/2013
TU-638
EXP-565
EQX-540
Valued Contributor
Epcot
Posts: 2,789
Registered: ‎10-10-2012
0

Re: PIF vs. Minimum Balance!!!!

I am pretty sure so that your utilization shows up around 9%, which seems to benefit for scoring purposes.

Starting Score: EQ 717 EX 724 TU 736
Current Score: EQ 816 EX 780 TU 823
App free since 4/11/13
Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

Re: PIF vs. Minimum Balance!!!!

>1% and <9% on only one card seems to be the consensus.

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Valued Contributor
Dustink
Posts: 3,097
Registered: ‎10-02-2012
0

Re: PIF vs. Minimum Balance!!!!


GABrown wrote:
why do some people say let a little balance carry over for reporting purposes? what does that mean?

Because people don't understand the FICO model.

 

You do not need to carry a balance. If you are using your card and paying in full, your card will still report a balance. The balance reported by your bank will impact your utilization ratio. Figure out when your card reports. Pay down the balance before that day to an amount between $5 and $45. So if your balance was $200, you will need to pay at least $155 before it reports the balance. Otherwise your utilization will bring down your credit score.

 

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Senior Contributor
jsucool76
Posts: 3,983
Registered: ‎12-11-2011
0

Re: PIF vs. Minimum Balance!!!!

Also...reporting a 1-9% balance does NOT need to be done every month. This is only "necessary" (and I quote necessary because it isn't really necessary to do at all) if you plan  on applying for something during that time. Also, as dustink said, REPORTING a balance is different than CARRYING a balance. 

 

In all honesty, if you are just trying to build a good history with you lender, PIF every month. Carrying a balance doesn't only cause an issue with FICO (because of high util), but it also means you're accruing interest. (unless you have a 0% offer)

;
Valued Contributor
Dustink
Posts: 3,097
Registered: ‎10-02-2012
0

Re: PIF vs. Minimum Balance!!!!

[ Edited ]

jsucool76 wrote:

Also...reporting a 1-9% balance does NOT need to be done every month. This is only "necessary" (and I quote necessary because it isn't really necessary to do at all) if you plan  on applying for something during that time. Also, as dustink said, REPORTING a balance is different than CARRYING a balance. 

 

In all honesty, if you are just trying to build a good history with you lender, PIF every month. Carrying a balance doesn't only cause an issue with FICO (because of high util), but it also means you're accruing interest. (unless you have a 0% offer)


+1


This process maximizes your credit score, but isn't really necessary at all.

 

I never went through it. My first credit card had a $300 limit, and I put $2500 through it every month. My utilization was not good on that card, but it didn't cause me any problems with getting a CLI and future cards.

 

Utilization changes every month, so don't stress over it if you aren't going to be apping for anything the next month.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Contributor
Croselx
Posts: 139
Registered: ‎07-31-2012
0

Re: PIF vs. Minimum Balance!!!!

Minimum payment due = interest to be paid = as well as burning money. I'm PIF for a while now and only allow $5-10 to report on one card if I want to apply for something in the short-term. IMO, if you aren't taking a loan, mortgage or app for new CC, you are better off PIF. Since big purchases/loans should be planned ahead in advance you should have enough time to play with the Util % to maximize the score.

As of Feb: AAoA 1 year, 10 months
CK TU: 740; Wal-Mart TU FICO: 721
CS EX: 715
8 CCs, 15 total accounts.
Negs on report: 1 30 day late aged 3 years
5 inquiries
New Contributor
GABrown
Posts: 55
Registered: ‎10-23-2012
0

Re: PIF vs. Minimum Balance!!!!

Thank you all for the responses..I don't plan on maxing out the card anyways so PIF is what I will do..I just thought for reporting purposes and to show I was using the card there needed to be some type of balance..Thanks for the clarifications..Much appreciated!!!!

IN MY PURSE- BankAmericard Cash Rewards Platinum Plus Visa
IN THE GARDEN UNTIL 11/2013
TU-638
EXP-565
EQX-540

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}