topic Re: PIF Question in Credit Cards

PIF Question

IncrsCreditScore1 — Mon, 30 May 2016 16:39:55 GMT

I need to work on having just one card report a small balance and the other showing no balance. My brain is not functioning correctly today. My question is do I need to pay the cards off before their cutoff dates in order for zero balances to show?

Re: PIF Question

AAstra — Mon, 30 May 2016 16:54:50 GMT

Yes. If you don't pay it to zero before the cutoff date (payment due date) then the balance unpaid will report as your balance for that month. I have several cards that I pay to zero every month and leave a balance on my Discover.

Re: PIF Question

CountryLivin — Mon, 30 May 2016 17:05:57 GMT

I have a bunch of cards that I PIF right before the cut off date, that way when they report it reports a zero balance.Whatever balance is left on the cards on the cut off dates will be what is reported to the CRA.

Re: PIF Question

IncrsCreditScore1 — Mon, 30 May 2016 17:33:36 GMT

@AAstra: I have always believed that the cutoff date and payment due date are two separate dates. Is that not true?

Re: PIF Question

Loquat — Mon, 30 May 2016 17:54:05 GMT

@IncrsCreditScore wrote:
@AAstra: I have always believed that the cutoff date and payment due date are two separate dates. Is that not true?

You're correct..your cycle date and due date are different.

Re: PIF Question

Anonymous — Mon, 30 May 2016 18:35:30 GMT

Right. Two different dates. example: most of my chase cards payment is due 6th, statement closes 9th. If you aren't using in between, then you can pay by due date (which will stay zero reported by statement date). If you're wanting to use the cards as much as possible, you may need to pull another payment.

The thing that threw me when I was switching over to trying to get most to report zero was that I didn't realize that if you pay to zero on a regular basis and the statement reports zero, the due date is irrelevant. Example: my RC reported zero last month so it says zero min pay due by 6/6 and zero statement balance. If I want to keep it that way, I just have to pay the outstanding balance by the 9th.

Re: PIF Question

RonM21 — Mon, 30 May 2016 22:34:49 GMT

Once you figure out how to due this, and know the difference between the dates, you start planning for it like clockwork. It's amazing how clueless I was when I got my first card in 2013. I never suffered a late payment or anything, but had to research in order to figure out how it all worked.

Re: PIF Question

IncrsCreditScore1 — Wed, 01 Jun 2016 19:52:01 GMT

Thanks to all of you. From the info you have provided, I think I can determine when to pay my bills so that the credit report shows 0 balance. I always pay before the due date, but an amount due always shows on the credit reports. So I will try paying before the cutoff date and see what happens. Again, thank you all.

Re: PIF Question

UncleB — Wed, 01 Jun 2016 20:31:15 GMT

I might be mistaken about this, but I recall reading on here a while back that U.S. Bank is an outlier... they are said to report to the credit bureaus at the end of the month regardless of the statement close date.

If you have an account with U.S. Bank it might be worth at least checking into... and if I'm mistaken or it's changed feel free to let me know (that's how we learn!)

Re: PIF Question

driftless — Wed, 01 Jun 2016 20:54:40 GMT

I just PIF on the due date. Sometimes a charge will change from pending to posted between the due date and report date, and that is fine.

Re: PIF Question

dragontears — Wed, 01 Jun 2016 21:01:23 GMT

@UncleB wrote:
I might be mistaken about this, but I recall reading on here a while back that U.S. Bank is an outlier... they are said to report to the credit bureaus at the end of the month regardless of the statement close date.

If you have an account with U.S. Bank it might be worth at least checking into... and if I'm mistaken or it's changed feel free to let me know (that's how we learn!)

Correct, they still report the balance on the last day of the month

Re: PIF Question

IncrsCreditScore1 — Wed, 01 Jun 2016 21:29:30 GMT

Thanks, Uncle B. I do not have an account with US Bank. I am going to check into my accounts about that though. Because it seems to me I noticed one or two of them had not reported/deducted my payment when it was received and did not do so until the due date. Will try to remember to let all of you know if that is accurate.

Re: PIF Question

Anonymous — Wed, 01 Jun 2016 21:33:58 GMT

@driftless wrote:
I just PIF on the due date. Sometimes a charge will change from pending to posted between the due date and report date, and that is fine.

It just depends on your goals. PIF on due date maximizes financial gains in the sense you get to keep your money the longest. Paying before statement cut can maximize your score, but, IMO, some people here do it without considering the opportunity cost. Unless you are applying, this month's score really doesn't matter.

Re: PIF Question

driftless — Wed, 01 Jun 2016 23:20:33 GMT

Unless there is a long gap between the due date and the report date, I don't think there is much of a distinction. My two banks report either 2 or 3 days after the due date.

Re: PIF Question

Anonymous — Thu, 02 Jun 2016 00:04:12 GMT

@driftless wrote:
Unless there is a long gap between the due date and the report date, I don't think there is much of a distinction. My two banks report either 2 or 3 days after the due date.

Right, but the choices are paying before the statement CUTS, or paying by the due date, and these are usually about three weeks apart. Report for that cycle is shortly after statement cut (except for US Bank/Elan etc)

Re: PIF Question

driftless — Thu, 02 Jun 2016 00:47:49 GMT

@Anonymous wrote:
@driftless wrote:
Unless there is a long gap between the due date and the report date, I don't think there is much of a distinction. My two banks report either 2 or 3 days after the due date.
Right, but the choices are paying before the statement CUTS, or paying by the due date, and these are usually about three weeks apart. Report for that cycle is shortly after statement cut (except for US Bank/Elan etc)

Mine aren't, they are all a few days apart. If I PIF on the due date then report for the cycle is likely to show a 0 balance.