Does my utilization affect my ability to get CLI's even if I PIF each month?

[Hcontreras]

Ok, here's my scenario:

I have a Chase Freedom card that has a $3,500 limit on it (just got it in Feb 2014). I am thinking of paying my apt rent on it each month (I have that option), along with a couple of other bills as well.....All in all, I plan on putting about $1,200 on it each month, then pay in full each month. 

My question is, if I do this I will be eating up about 34% utilization each month, then PIF before the due date.....Will this action hinder me from being considered for CLI's from Chase? Either auto or other? I DO NOT want this to be counter productive, sinice my ultimate goal is to grow my TL's (especially this one).

or will it help me in being considered for CLI's with Chase in the future? Since I will be paying in full each month and how I see it "responsible use"?

[user5387]

I expect this pattern would help you with Chase re CLIs.

It may hurt you with other lenders, because of the relatively high reported utilization.  You can control what is reported by paying down the balance before the statement date.

[Hcontreras]

That's the whole point of my post is NOT to report a utilization. As mentioned in my OP, I plan on PIF each month (showing zero balance when the statement cuts)...

My concern is mainly with Chsse CLI's.

[user5387]

In your original post you mentioned PIF before the due date, which is distinct from the statement date for reporting purposes.

Chase doesn't care about the distinction, but what is reported may be of interest to other creditors or potential lenders.

[Hcontreras]

My statement cuts 3 days after my due date. I don't intent on putting $1,200 in purchases in that timeframe each month. Who would do that? It will report zero each month, again, my question is will this hurt my CLI chances in any way?

[azguy13]

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@Hcontreras wrote:
My statement cuts 3 days after my due date. I don't intent on putting $1,200 in purchases in that timeframe each month. Who would do that? It will report zero each month, again, my question is will this hurt my CLI chances in any way?

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Nobody can really answer that since Chase has its own internal scoring system and NOBODY has been able to come up with a 100% pattern with Chase in regards to CLIs. Some people who PIF every month will get an Auto CLI while someone else who likes to carry a balance each month may also get a CLI.

If it were Amex or Citi or anyone else, we would be able to tell you. But, at most, someone can share their experience or what a pattern they have seen in the last month. I ALWAYS PIF my CSP and SWA cards (I put about $3K-$4K through them each month) and have never received an Auto CLI.

[gdale6]

IMO, no

[lhcole77]

Using your card and paying your balance will never hurt your chances of a CLI. I'm not sure why you think it would.

[takeshi74]

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@Hcontreras wrote:
My statement cuts 3 days after my due date. I don't intent on putting $1,200 in purchases in that timeframe each month. Who would do that? It will report zero each month, again, my question is will this hurt my CLI chances in any way?

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You're a bit confused.  The following statement cuts 3 days after the prior statement due date.  It's not just a 3 day window for one statement period.  PIF'ing by the due date doesn't mean that no balance will report since transactions have posted since the prior statement closed.  PIF'ing is only going to fully pay the prior statement balance.  It will not pay off the following statement.

If you want no balance to report you have to pay prior to statement close, not prior to the due date.  Balance reports at statement close so paying by the due date will not affect what reports.

[Hcontreras]

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@lhcole77 wrote:

Using your card and paying your balance will never hurt your chances of a CLI. I'm not sure why you think it would.

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It's not the action of using my card and PIF each month, I know there's nothing wrong in that, we all do it all the time.....my question is if I take my utilization (within the month) to about 30-40% then pay it all off before the due date. Will it hurt my chances with Chase (internally) when it comes time that they consider CLI's?