topic Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions... in Credit Cards

Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 16:24:49 GMT

After filing for Bankruptcy (discharged January 2015) I didn't think we would ever be able to get credit again. Turns out I was wrong. I have since been able to get a brand new car and several credit cards. I'm being EXTREMELY cautious with them all. I was approved for a NFCU cashRewards card of $3800 (I know it's low but it's a start) at the end of October 2016. I have been using it for things that I would already pay for (electric, groceries, internet, etc) and PIF at the end of the month.

I also have Walmart ($500) and Amazon ($700).

Should I carry a balance on these cards or am I doing the right thing by PIF at the end of each month? My second statement is about to post for my NFCU card. I am thinking about asking for a CLI in the middle of April. Do you think it will be too soon then? They have turned me down for the CLOC (which is ok) but I'm concerned that they may turn me down for the CLI too. I'm sure if I were to ask for the full $25k on the CLI that they would turn it down. Should I go for a lower amount when I ask for the increase?

WHY DOES THIS STUFF HAVE TO BE SO COMPLICATED? lol

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 16:19:26 GMT

There is no FICO report or score benefit for carrying balances. If you must carry, a 0% offer is of course the best way to handle it while you pay it off.

For maximum point gaining, the best thing to do is keep all accounts paid fully before the statement cuts, except for 1 card which should report about 1% balance used.

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 16:21:20 GMT

WOW That's interesting! Never heard to carry a balance on 1 card at 1%. That's awesome thanks!!!!

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

woodyman100 — Sat, 07 Jan 2017 16:23:02 GMT

I would PIF no matter what right now.
Get in the habit of that and it will serve you well.
I had to claw back from credit heck too and learned how to make credit work for me.
I have fallen off the wagon a bit while building a house and paying for my daughters wedding, but I clamped down and took care of that with some 0 int shuffles. I was mad at myself for doing that.
Trust me. NFCU will not care. Just use and pay then rinse and repeat.
We look forward to watching your progress.
Lots of support on here from most everyone!
All great people

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 16:33:22 GMT

It's not really carrying a balance, you should still pay it off when the statement cuts so you don't pay interest. The key is that you are simply allowing a small balance to get reported to the credit bureaus.

IE if the card balance is reported on the 15th each month, you make sure it has a small balance on it by that day. You then pay the full balance each month to avoid interest, but don't pay too early or it can report zero balance which is not as good as 1 card reporting a small balance.

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 16:37:27 GMT

Looks like my statement cuts on the 22nd. So, make sure it has a small balance by that day correct? Right now I have $159 charged on it.

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 16:44:43 GMT

You can PIF after the statement cuts. Unfortunately banks don't necessarily report based on when a statement cuts. I have the MyFico credit tracking thing and notice balances often report on totally different days than the statement close date.

If you track it for a month you can find out exactly when each card is reported.

I'm making it sound more complicated than it really is. Just make sure all cards besides 1 are paid fully before they report, and that 1 card is allowed to report the small balance. Boom done.

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 17:11:10 GMT

My understanding of this is that it's best to let a small balance report, (<9% of total CL for each card) and PIF all cards after statement cuts with the exception of 1 card carry a balance of $5. That is what I do and it will give you the maximim benefit of FICO scoring.

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 17:13:40 GMT

@Anonymous wrote:
My understanding of this is that it's best to let a small balance report, (<9% of total CL for each card) and PIF all cards after statement cuts with the exception of 1 card carry a balance of $5. That is what I do and it will give you the maximim benefit of FICO scoring.

OT, but I like the way your post appears: "PinkFloyd Member" Not many people could claim that!

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 17:27:51 GMT

@Anonymous wrote:
My understanding of this is that it's best to let a small balance report, (<9% of total CL for each card) and PIF all cards after statement cuts with the exception of 1 card carry a balance of $5. That is what I do and it will give you the maximim benefit of FICO scoring.

This is incorrect actually. Letting multiple cards report balances can actually make your score drop, even if they are $5 each.

Maximum FICO scoring is achieved as I stated: 1 card reporting 1% utilization (1% of it's credit limit), and all others reporting zero.

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 17:34:59 GMT

That's what I'm going with!!!! Need to get Amazon and Walmart paid off (mine - my husband's are paid in full already). Won't happen until tax returns but that'll be next month at the latest. Thanks so much for your help!!!!!

Ursula

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 19:23:39 GMT

So a few more questions (then I promise I will leave you alone). lol Would it be ok to ask for a CLI in mid April, or is that to soon? My first statement just cut in December. Should I ask for the full $25k or a lower amount? Does NFCU ever do auto increases?

Ursula

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 19:41:46 GMT

@Anonymous wrote:
So a few more questions (then I promise I will leave you alone). lol Would it be ok to ask for a CLI in mid April, or is that to soon? My first statement just cut in December. Should I ask for the full $25k or a lower amount? Does NFCU ever do auto increases?

Ursula

If you read the NFCU CLI thread, it seems you need to wait for at least 3 statements to cut, and it's best to wait for a quarterly account review to happen first.

I opened mine in the first week of August last year, and just barely requested a CLI this week. It was a HP, but jumped from 15.3k to 21.5k so I figure that's worth it.

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sat, 07 Jan 2017 20:04:25 GMT

Awesome! So you waited about 5 months. April (for me) would be about 6 months. I am hoping that I can get it increased after about 6 months. Fingers crossed!

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sun, 08 Jan 2017 05:58:07 GMT

@Anonymous wrote:
Awesome! So you waited about 5 months. April (for me) would be about 6 months. I am hoping that I can get it increased after about 6 months. Fingers crossed!

just keep being wise with your credit stuff and I'm sure you will be able to get it

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

oldman425 — Sun, 08 Jan 2017 07:04:08 GMT

I received my card last month and I think I'm going to wait for my BK to drop off my reports which will be at the end of April before I go for the CLI on my card and CLOC.

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

UncleB — Sun, 08 Jan 2017 11:18:38 GMT

Just want to point out that ARs (account reviews) are every other month, not quarterly.

(It's easy to keep track of... the 'big' NFCU thread has a large group of people who get very active around the time of the AR.)

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

Anonymous — Sun, 08 Jan 2017 15:05:36 GMT

So AR's being every other month does that mean you should wait at least 6 months to go for a CLI? I thought I read to wait for the 3rd AR. I am not sure if I'll be able to see AR's or not. Right now I'm using Credit Karma and Credit Sesame to track stuff. Yes, I know it's extremely unreliable and inaccurate but it gives me an idea of what's going on and where I'm at. I figure once it's been about 6 months or so of me rebuilding I will sign up for MyFico again. I am determined this time! Got my game face on. LOL

Ursula

Re: Carry Balance or PIF On NFCU CashRewards... CLI Questions...

UncleB — Sun, 08 Jan 2017 15:48:20 GMT

@Anonymous wrote:
So AR's being every other month does that mean you should wait at least 6 months to go for a CLI? I thought I read to wait for the 3rd AR. I am not sure if I'll be able to see AR's or not. Right now I'm using Credit Karma and Credit Sesame to track stuff. Yes, I know it's extremely unreliable and inaccurate but it gives me an idea of what's going on and where I'm at. I figure once it's been about 6 months or so of me rebuilding I will sign up for MyFico again. I am determined this time! Got my game face on. LOL

Ursula

I can give you my opinion, but there's a very large thread on this very topic: http://ficoforums.myfico.com/t5/Credit-Card-Applications/Navy-Federal-Thread-for-CLI-and-Additional-Cards/td-p/3419729

You don't have to read the whole thing... just skip to a month or so back and start from there; much of the information is repetative, however there have been some recent changes (such as waiting until after both the third statement and 90 days).

Also keep in mind that nothing here is 'set in stone''; the other thread is a great example of how things we 'think' we have figured out can change over time.

(My opinion on your question here is the longer you wait the better your chances might be, but that's just my opinion... many others have only waited the requisite 90 days/three statements and have done quite well.)