Reply
Established Member
Posts: 28
Registered: ‎03-24-2013
0

Which Is Better - PIF Or Almost PIF?

I'm confused, as I seem to have read differing advice. Which is better: having a zero balance or having a small balance when your statement closes?

New Contributor
Posts: 401
Registered: ‎03-16-2013
0

Re: Which Is Better - PIF Or Almost PIF?

Zero balance is better some balance will send the score down normaly if you carry more then 16% on the individual card.

 

Citi Bank X2/ 29k-USAA Amex/Mastercard 24k-PP Mastercard 20k_
WMDiscover 20k-PenFed X2/15k
Current Fico/EQ-765
Garden Time Day- 10
Remaining Days-170
Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
0

Re: Which Is Better - PIF Or Almost PIF?


danielodonoll wrote:

Zero balance is better some balance will send the score down normaly if you carry more then 16% on the individual card.

 


The standard advice is:

 

1 card reporting some balance (1-9% is commonly quoted)

All other cards 0 balance

 

SO that's might be why you saw what appears to be conflicting advice, both are true!  0 on all but one card, but a balance on the other  (and PIF before the due date)

Blogger
Posts: 3,348
Registered: ‎10-19-2012
0

Re: Which Is Better - PIF Or Almost PIF?


bs6054 wrote:

danielodonoll wrote:

Zero balance is better some balance will send the score down normaly if you carry more then 16% on the individual card.

 


The standard advice is:

 

1 card reporting some balance (1-9% is commonly quoted)

All other cards 0 balance

 

SO that's might be why you saw what appears to be conflicting advice, both are true!  0 on all but one card, but a balance on the other  (and PIF before the due date)


+1

 

If you have only one card, keep a small balance on it. If you have more than one, keep a small balance on one and pay in full for the rest.

 

Established Member
Posts: 28
Registered: ‎03-24-2013
0

Re: Which Is Better - PIF Or Almost PIF?


bs6054 wrote:

danielodonoll wrote:

Zero balance is better some balance will send the score down normaly if you carry more then 16% on the individual card.

 


The standard advice is:

 

1 card reporting some balance (1-9% is commonly quoted)

All other cards 0 balance

 

SO that's might be why you saw what appears to be conflicting advice, both are true!  0 on all but one card, but a balance on the other  (and PIF before the due date)


Thanks! That's exactly why I was confused.

 

Second question: Why is it better to have 1 card with a small balance (and all other cards with a zero balance), than to have all cards with a zero balance?

Blogger
Posts: 3,348
Registered: ‎10-19-2012
0

Re: Which Is Better - PIF Or Almost PIF?


IEM wrote:

bs6054 wrote:

danielodonoll wrote:

Zero balance is better some balance will send the score down normaly if you carry more then 16% on the individual card.

 


The standard advice is:

 

1 card reporting some balance (1-9% is commonly quoted)

All other cards 0 balance

 

SO that's might be why you saw what appears to be conflicting advice, both are true!  0 on all but one card, but a balance on the other  (and PIF before the due date)


Thanks! That's exactly why I was confused.

 

Second question: Why is it better to have 1 card with a small balance (and all other cards with a zero balance), than to have all cards with a zero balance?


Because the latter would suggest that you're not using credit, which is not what you want to demonstrate. Doing the former implies that you're using credit moderately, which is what creditors want to see.

 

New Contributor
Posts: 401
Registered: ‎03-16-2013
0

Re: Which Is Better - PIF Or Almost PIF?

[ Edited ]

bs6054 wrote:

danielodonoll wrote:

Zero balance is better some balance will send the score down normaly if you carry more then 16% on the individual card.

 


The standard advice is:

 

1 card reporting some balance (1-9% is commonly quoted)

All other cards 0 balance

 

SO that's might be why you saw what appears to be conflicting advice, both are true!  0 on all but one card, but a balance on the other  (and PIF before the due date)


 if you carry more then 16% on the individual card will sink the score faster then Titanic!!!!!

Citi Bank X2/ 29k-USAA Amex/Mastercard 24k-PP Mastercard 20k_
WMDiscover 20k-PenFed X2/15k
Current Fico/EQ-765
Garden Time Day- 10
Remaining Days-170
New Contributor
Posts: 74
Registered: ‎03-07-2013
0

Re: Which Is Better - PIF Or Almost PIF?


IEM wrote:

I'm confused, as I seem to have read differing advice. Which is better: having a zero balance or having a small balance when your statement closes?


Your post and your thread title are 2 different questions.  You should always pay in full.  However, it might be wise to let a small balance report to the credit agencies on one of your cards, as other people have said.  

 

To do this, pay off almost all your cards in full before their respectove statement cutoff date.  On that last card, you can let the balance report if you want (and if it's not that big) or you can pay part of it prior to the statement cutoff date so it reports a smaller balance.  After that, pay it off in full before the payment due date.

Age: 20 | AAoA: 1.1 Years | TU Fico: 725 | EX Fico: 719 | EQ Fico: 693
Last App: 12/09/2013
Established Member
Posts: 28
Registered: ‎03-24-2013
0

Re: Which Is Better - PIF Or Almost PIF?


Commandolam wrote:

IEM wrote:

I'm confused, as I seem to have read differing advice. Which is better: having a zero balance or having a small balance when your statement closes?


Your post and your thread title are 2 different questions.  You should always pay in full.  However, it might be wise to let a small balance report to the credit agencies on one of your cards, as other people have said.  

 

To do this, pay off almost all your cards in full before their respectove statement cutoff date.  On that last card, you can let the balance report if you want (and if it's not that big) or you can pay part of it prior to the statement cutoff date so it reports a smaller balance.  After that, pay it off in full before the payment due date.


Sorry about that - I take your comment to mean that I've been using "PIF" in a more general sense (as in, pay everything down) than its dictionary definition.

 

I tend to rack up big purchases during a billing cycle, and I always pay it off before the due date. However, I assume that if I were to let that (big) balance report, that would be a very bad thing for my credit score, even if as I said I pay it all off before the due date.

Frequent Contributor
Posts: 470
Registered: ‎02-14-2013
0

Re: Which Is Better - PIF Or Almost PIF?

[ Edited ]
I sometimes pay 2 or 3 times a month if I'm using it a lot, and 1 card I pay almost-in-full before the statement date. I've been leaving $10-25, then pay that after the statement date (usually a day or two after) but before the due date. I had 0 utilization a few months ago, so by letting something report (the $10-25) I have 1-3% utilization.

I pay the other cards in full before the statement date.
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.