cancel
Showing results for 
Search instead for 
Did you mean: 

PiF vs carrying a balance

Frequent Contributor

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. 


I know..but the poit is throwing them a bone. It's different to make money off of using it vs money from interest. Even if the money is minuscle, who knows it might help with a CLI...an investment I'm willing to do. I'd expect him to know what he's talking about for the most part.

Capital One Quicksilver MC $3000 6/2011 | Chase Amazon Visa $1400 8/2012 | Citi Diamond Preferred MC $4200 7/2013 | AMEX Green NPSL 8/2013 | Chase Freedom $1000 Visa 8/2013 | AMEX BCE $7000 2/2014 ==> 2/2013
Message 11 of 37
Frequent Contributor

Re: PiF vs carrying a balance

How is it different? Money is money. They're still making a profit. I expect Chase to be sophisticated enough to realize when they are making a larger profit. 

Message 12 of 37
Valued Contributor

Re: PiF vs carrying a balance


Shock_ wrote:

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. 


I know..but the poit is throwing them a bone. It's different to make money off of using it vs money from interest. Even if the money is minuscle, who knows it might help with a CLI...an investment I'm willing to do. I'd expect him to know what he's talking about for the most part.


Carrying a balance does not increase your chances for CLI.  That is ridiculous.  For some lenders, if you are carrying a large balance for extended periods of time, you are more likely to get your credit limit reduced.

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Message 13 of 37
Established Contributor

Re: PiF vs carrying a balance


Shock_ wrote:

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"


That's the most ridiculous advise I ever heard coming from a banker. Don't listen to it unless you just  want to pay interest, however small.

Amex BCE $11.1 / Citi Diamond Preferred WMC $12K / Citi Double Cash WMC $3.8K / Comenity Total Rewards Visa $2.5K / Citi Home Depot $5K / AU- Amex BCP $12K / Chase Freedom Visa $11014.00 / PenFed Platinum Rewards Visa Signature $6K / GE Lowes $10K
myFico Scores on 10/03/2014
Eq 798 / Exp 811 / Trans 814
CCT Fico 08 on 1/3/16 - Trans 786 / Exp 793 / Eq 797
Message 14 of 37
Valued Contributor

Re: PiF vs carrying a balance


OnTheRebound wrote:

Shock_ wrote:

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"


That's the most ridiculous advise I ever heard coming from a banker. Don't listen to it unless you just  want to pay interest, however small.


+1 Agreed. That's terrible advice. Also, you can't believe everything you hear from your banker. There are many posts on this forum where people were told one thing by their banker just to find out that they had absolutely no idea what they were talking about. I would never pay interest solely for the purpose of "throwing the bank a bone" and hoping that would lead to CLIs.


Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+
Message 15 of 37
Senior Contributor

Re: PiF vs carrying a balance


parakleet wrote:

OnTheRebound wrote:

Shock_ wrote:

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"


That's the most ridiculous advise I ever heard coming from a banker. Don't listen to it unless you just  want to pay interest, however small.


+1 Agreed. That's terrible advice. Also, you can't believe everything you hear from your banker. There are many posts on this forum where people were told one thing by their banker just to find out that they had absolutely no idea what they were talking about. I would never pay interest solely for the purpose of "throwing the bank a bone" and hoping that would lead to CLIs.


+2

Message 16 of 37
Frequent Contributor

Re: PiF vs carrying a balance

Granted it sounds like a horrible idea but thanks for your responses. I just think it wouldnt hurt to try it. I mean what is two cents for interest? And none of us know the exact qualifications for a CLI from any lender. I'm not saying you should do it, but who knows..it might work. and if it doesn't, it's a few cents out the pocket.

 

Maybe hoping for a CLI by doing that is the wrong way to approach it. But I'm not so sure paying in full every month fully proves you can pay back over time, but rather for that month, if that makes sense. 

 

I don't mean to troll anyone, but it's just my opinion, and it may work Smiley Happy ?

Capital One Quicksilver MC $3000 6/2011 | Chase Amazon Visa $1400 8/2012 | Citi Diamond Preferred MC $4200 7/2013 | AMEX Green NPSL 8/2013 | Chase Freedom $1000 Visa 8/2013 | AMEX BCE $7000 2/2014 ==> 2/2013
Message 17 of 37
Valued Contributor

Re: PiF vs carrying a balance


Shock_ wrote:

Granted it sounds like a horrible idea but thanks for your responses. I just think it wouldnt hurt to try it. I mean what is two cents for interest? And none of us know the exact qualifications for a CLI from any lender. I'm not saying you should do it, but who knows..it might work. and if it doesn't, it's a few cents out the pocket.

 

Maybe hoping for a CLI by doing that is the wrong way to approach it. But I'm not so sure paying in full every month fully proves you can pay back over time, but rather for that month, if that makes sense. 

 

I don't mean to troll anyone, but it's just my opinion, and it may work Smiley Happy ?


Sorry. That makes no sense. Sure, it's not just people who PIF vs. those who carry a balance. Most people do a combination depending on their needs. But I don't think anyone would argue that someone who PIF every month has no bearing on the likelihood that person is able to pay off their bills.


Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+
Message 18 of 37
Frequent Contributor

Re: PiF vs carrying a balance


parakleet wrote:

Shock_ wrote:

Granted it sounds like a horrible idea but thanks for your responses. I just think it wouldnt hurt to try it. I mean what is two cents for interest? And none of us know the exact qualifications for a CLI from any lender. I'm not saying you should do it, but who knows..it might work. and if it doesn't, it's a few cents out the pocket.

 

Maybe hoping for a CLI by doing that is the wrong way to approach it. But I'm not so sure paying in full every month fully proves you can pay back over time, but rather for that month, if that makes sense. 

 

I don't mean to troll anyone, but it's just my opinion, and it may work Smiley Happy ?


Sorry. That makes no sense. Sure, it's not just people who PIF vs. those who carry a balance. Most people do a combination depending on their needs. But I don't think anyone would argue that someone who PIF every month has no bearing on the likelihood that person is able to pay off their bills.


It definitely has bearing...and PIF every month definitely does not hinder your credit. But are you maximizing your score or CLI chances by doing that? Like you said, a combination is probably best and I don't disagree.

Capital One Quicksilver MC $3000 6/2011 | Chase Amazon Visa $1400 8/2012 | Citi Diamond Preferred MC $4200 7/2013 | AMEX Green NPSL 8/2013 | Chase Freedom $1000 Visa 8/2013 | AMEX BCE $7000 2/2014 ==> 2/2013
Message 19 of 37
Mega Contributor

Re: PiF vs carrying a balance


parakleet wrote:

Sorry. That makes no sense. Sure, it's not just people who PIF vs. those who carry a balance. Most people do a combination depending on their needs. But I don't think anyone would argue that someone who PIF every month has no bearing on the likelihood that person is able to pay off their bills.


While I agree, it looks like Fico (which IS meant to provide some prediction) doesn't seem to care that much, the important indicator (among everything else) is paying at least the minimum on time.    I don't know if Fico found PIF non-predictive or don't use it for some other reason.

Message 20 of 37