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New Contributor
Posts: 58
Registered: ‎08-23-2013
0

PiF vs carrying a balance

First of all I want to thank everyone for all the help and teaching you have provided me in the past few short weeks after discovering this amazing site & forums! So many of you have much knowledge and experience than I do. I'm trying to learn as much as possible which brings me to my question:

is it much better (ie for applying or credit scores) to PiF vs carrying a small balance around 1-9% UTL? I did read on another topic that you should only carry a balance on one card if you own multiple cards.

Thanks for any advice and tips!

All FICO scores as of 9.1.14: Exp 744, Eq 745, TU 764
Goal: 800+ across the board
Community Leader
Senior Contributor
Posts: 27,672
Registered: ‎02-07-2013
0

Re: PiF vs carrying a balance


Danizzle wrote:

First of all I want to thank everyone for all the help and teaching you have provided me in the past few short weeks after discovering this amazing site & forums! So many of you have much knowledge and experience than I do. I'm trying to learn as much as possible which brings me to my question:

is it much better (ie for applying or credit scores) to PiF vs carrying a small balance around 1-9% UTL? I did read on another topic that you should only carry a balance on one card if you own multiple cards.

Thanks for any advice and tips!


To do your best to have 1 card report a balance of 1-9%

+ Chase ink =




Super Contributor
Posts: 11,230
Registered: ‎04-22-2013
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Re: PiF vs carrying a balance

And, just to be clear, ideally you should PIF by the due date, the way to optimize the score is to let the 1-9% balance REPORT, so the statement cuts showing this small balance, but then you pay in full to avoid interest charges.  Often, people use "carry a balance" to mean paying less that full, so that the balance is carried to the next month, usually creating an interest charge.

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Frequent Contributor
Posts: 363
Registered: ‎06-25-2013
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Re: PiF vs carrying a balance

letting the balance report, not carrying one, always pif before due date

 

i had few hundred dollars on my boa card, i paid it down to about 5% utilization, statement closes tonight, so the balance will report, but will be paid off well before the due date next month

 
If a man empties his purse into his head, no one can take it from him. An investment in knowledge always pays the best interest. - Benjamin Franklin
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Moderator
Posts: 27,207
Registered: ‎09-13-2012
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Re: PiF vs carrying a balance

[ Edited ]
Valued Contributor
Posts: 1,607
Registered: ‎09-15-2012
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Re: PiF vs carrying a balance

You never need to carry a balance (this requires you to pay interest) in order to maximize credit score.

This link, and all the links inside it should help you.

http://ficoforums.myfico.com/t5/Credit-Cards/Best-ratio-of-balance-for-multiple-cards/td-p/1898219

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Last App: June 27, 2015
New Contributor
Posts: 58
Registered: ‎08-23-2013
0

Re: PiF vs carrying a balance

[ Edited ]

Thanks guys. I should have clarified that by "carry a balance" I meant report a balance. I always pay at least the closing statement balance and have yet to pay any interest.

All FICO scores as of 9.1.14: Exp 744, Eq 745, TU 764
Goal: 800+ across the board
Frequent Contributor
Posts: 332
Registered: ‎08-07-2013
0

Re: PiF vs carrying a balance

Hi ALL:

 

I just applied for a Freedom at a Chase branch. Got approved for a low limit of $500 (called EO for CLI, in progress). 

 

My banker said it was probably due to a charge off I had even though it was well over four years ago and just waiting for it to fall off.

 

I told him I didn't mind the limit as long as my foot was in the door.

 

FWIW, he said that auto-CLI's do happen, and recommended that you leave a dollar on your balance or so, that way Chase can make a little money from you, and they may reward you with a CLI. For example, use 100, pay off 99, reolving $1, which is 2 cents interest, etc etc.

 

Not sure if this is good advice at all, but making yourself look like a profitable customer may allow you a little more "Freedom"

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Frequent Contributor
Posts: 271
Registered: ‎02-10-2013
0

Re: PiF vs carrying a balance

@Shock_

 

Chase makes money off you whether or not you carry a balance. Every time you swipe a card, the ccc makes money. It is completely possible for a ccc to make more money from someone who uses the card heavily but PIF than from someone who barely uses the card and carries the small balance. 

Valued Contributor
Posts: 2,424
Registered: ‎03-15-2012
0

Re: PiF vs carrying a balance


Dubious wrote:

@Shock_

 

Chase makes money off you whether or not you carry a balance. Every time you swipe a card, the ccc makes money. It is completely possible for a ccc to make more money from someone who uses the card heavily but PIF than from someone who barely uses the card and carries the small balance. 


+1

Anyone else notice the CCs are starting to push world cards now (higher swipe fees)?

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