The PIF Phenomena ;)

[Credit_hawk]

Guys, I think the one thing we can all agree on is JoeyZoom is a wild and crazy guy. If you're unfamiliar, look at his previous posts. I genuinely hope he never stops posting. He  livens this place up with his exploits.

[Thomas_Thumb]

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@Anonymous wrote:

so then what are credit cards for if not to occassionally float people by financially ?  As a tool simply to reap rewards?  What about non-reward cards?  They're plenitful. ...  why do they exist if not for those reasons?  I understand your thought process to a point but only to a point

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I like the idea of using credit cards to float money at the establishment's expense. That's why I let all charges post on statements and then PIF the amount 2 or 3 days before due date. Not really concerned about aggregate CC utilization affecting score much as total CL is enough to keep utilization under control.

It's all about convenience and float for me. Oh, cash back bonuses are nice as well.

PIF after charges post rules!

Forgot my 2nd rule - No revolvers with annual fees, ever!  There are good enough cash back perks availble with no fee cards [such as Discover card].

Nothing beats the Best Buy card for "cash back" on in store purchases once you achieve Elite status. Ok, it's not really cash back, but you use the rewards as cash for subsequet purchases. I'm one of their loyal customers.

[Dcyphrz]

I never charge anything that I don't have the money for.  Period.  Hard times have given me a healthy fear of joblessness and debt.  I do run everything through cards to skim off the points but it all gets paid as soon as the charges post (some I can pay immediately). I only carry a balance when a charge happens to post at the end of the billing period and my payment doesn't post before the statement prints. 

[jeffery581]

Really good responses. They are all correct to a certain degree IMO.

[Anonymous]

I'm one of the people that makes payments right after the charge posts, or for cards like BofA/Amex I can immediately make a payment. I use it to earn rewards on charges I would only make if I have the money. I do let on card post a balance, my Fidelity Amex. Never paid interest in my life. I also safe about $600 a month into a savings account and 10% of paycheck into 401k. Definitely don't live above means.

[OMW2_HighAcheiver]

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@sreneesa wrote:

@Anonymous @ all the redundancies in this thread... Some pay in full and others do not. It is a personal choice and decision. 

It doesn't matter how much we beat the PIF horse, people are going to do what they want because it is their life. 

Do I pay in full each month? Nope. 

Do I have enough in savings to pay off my CC debt? Yes.

Will I pay off my CC debt with my savings? Nope. 

That's that. lol  

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EXACTLY THIS. 

[Pway]

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@OMW2_HighAcheiver wrote:

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@sreneesa wrote:

@Anonymous @ all the redundancies in this thread... Some pay in full and others do not. It is a personal choice and decision. 

It doesn't matter how much we beat the PIF horse, people are going to do what they want because it is their life. 

Do I pay in full each month? Nope. 

Do I have enough in savings to pay off my CC debt? Yes.

Will I pay off my CC debt with my savings? Nope. 

That's that. lol  

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EXACTLY THIS. 

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I totally agree.  

[CreditScholar]

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@Credit_hawk wrote:

Guys, I think the one thing we can all agree on is JoeyZoom is a wild and crazy guy. If you're unfamiliar, look at his previous posts. I genuinely hope he never stops posting. He  livens this place up with his exploits.

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I haven't read any of his previous posts, but this one was really really painful to read...

[Anonymous]

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@OMW2_HighAcheiver wrote:

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@sreneesa wrote:

@Anonymous @ all the redundancies in this thread... Some pay in full and others do not. It is a personal choice and decision. 

It doesn't matter how much we beat the PIF horse, people are going to do what they want because it is their life. 

Do I pay in full each month? Nope. 

Do I have enough in savings to pay off my CC debt? Yes.

Will I pay off my CC debt with my savings? Nope. 

That's that. lol  

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EXACTLY THIS. 

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I lived without credit for over a decade.  Once had a rental company tell me I didn't exist.  They let me rent the house I wanted, but charged me double security deposit (which my employer paid)

I only started rebuilding because I wanted to buy a house.  I have thought about paying more, but I will NEVER be able to get that money for what I am paying in interest right now.  If I have better uses for that money (including investments), I will take those uses.

Likewise, I am carrying about $8k on credit cards right now.  (Deals that were really good, house improvements, etc), ALL of it at 0% interest.  All of the deferred interest WILL be paid off before the promotion ends.  I have three 0% interest cards, all of which will also be my lowest interest rate cards when the 0% promotion expires.

Like sreneesa wrote, I could pay off most, if not all, of my 0% interest rate borrowing from savings, if I so choose.  But why should I?  Even if I am earning so close to 0% on that money that it doesn't matter, shouldn't I keep the money available for emergencies?

The consensus is that we should use rewards because it's free money.  Isn't 0% interest also free money?  (NB, it IS vitally important to have a plan to pay it back before it becomes non-free)

[Anonymous]

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@Anonymous wrote:

Completely agree that 1 & 2 is nonsense and dumb -- but 3, 4 and 5 you listed are usually unavoidable, hence where credit comes into play.  Personally, I charge rent (live in a high end luxury complex - big corp and online payments) to get the rewards reaped and cash back (Rent: $2,000 monthly, amounts to about $40 back a month; also charge auto payment (same reason - rewards), groceries, gas (PenFed 5% BACK!!!!), and utilities.  Out of those, I usually PIF all but 1-2 of those charges, and even that I pay down decently.  Some month I will skip charging rent, but rarely -- why pay $2000 in rent when you can pay $1960 ??  Ill never understand people who tell people "never to use credit cards" but that's a whole other thread!

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Nearly 70 replies but no one really asked you explicitly (I think): 1) don't they charge you fees for paying your rent with a cc? If not, then you're really lucky. 2) You did mention that you don't pay everything in full. Is the balance on a 0% card? If not, then even if it is on a low APR card, you're still paying more on interest then you make on rewards. Have you done the math?