topic Re: What exactly is an Amex PIF? in Credit Cards

What exactly is an Amex PIF?

aftermath — Sat, 31 May 2008 04:25:21 GMT

I have an Amex Delta Gold. There have been many threads stating that a CLI is more likely to happen if you PIF this card every month. When you say PIF, do you mean paying the amount shown on your statement? Or do you mean paying it before the statement arrives?

Re: What exactly is an Amex PIF?

Anonymous — Sat, 31 May 2008 04:39:08 GMT

PIF your statement balance

Only PIF prior to statement cutting if you need a FICO boost/fine tuning or are obsessive.

aftermath wrote:
I have an Amex Delta Gold. There have been many threads stating that a CLI is more likely to happen if you PIF this card every month. When you say PIF, do you mean paying the amount shown on your statement? Or do you mean paying it before the statement arrives?

Re: What exactly is an Amex PIF?

Anonymous — Sat, 31 May 2008 04:39:22 GMT

Means paying the entire balance not just the minimum amount due.

Re: What exactly is an Amex PIF?

aftermath — Sat, 31 May 2008 05:12:40 GMT

@Anonymous wrote:
Means paying the entire balance not just the minimum amount due.

silly rabbit... i know what PIF means, I just wanted to know if everyone pays the total balance on the statement, or prior.

Re: What exactly is an Amex PIF?

Anonymous — Sat, 31 May 2008 05:49:47 GMT

@aftermath wrote:

@Anonymous wrote:
Means paying the entire balance not just the minimum amount due.

silly rabbit... i know what PIF means, I just wanted to know if everyone pays the total balance on the statement, or prior.

I charge a lot, and PIF prior to statement cutting.

Re: What exactly is an Amex PIF?

Anonymous — Sat, 31 May 2008 06:04:34 GMT

@Anonymous wrote:

@aftermath wrote:

@Anonymous wrote:

Means paying the entire balance not just the minimum amount due.

silly rabbit... i know what PIF means, I just wanted to know if everyone pays the total balance on the statement, or prior.

I charge a lot, and PIF prior to statement cutting.

Me too.

But since I use it for all double-miles eligible purchases, I always end up with a small balance reporting. Can't avoid the gas and groceries for a few days just because the statement date is coming up.

Oh, and actually, I typically PIF about 3 times a month.

Re: What exactly is an Amex PIF?

Anonymous — Sat, 31 May 2008 13:05:43 GMT

@Anonymous wrote:

@Anonymous wrote:

@aftermath wrote:

@Anonymous wrote:

Means paying the entire balance not just the minimum amount due.

silly rabbit... i know what PIF means, I just wanted to know if everyone pays the total balance on the statement, or prior.

I charge a lot, and PIF prior to statement cutting.

Me too.

But since I use it for all double-miles eligible purchases, I always end up with a small balance reporting. Can't avoid the gas and groceries for a few days just because the statement date is coming up.

Oh, and actually, I typically PIF about 3 times a month.

I agree. I PIF every Friday. It helps keep me from racking up to much, haha.

Re: What exactly is an Amex PIF?

haulingthescoreup — Sat, 31 May 2008 14:02:52 GMT

Getting back to what I think aftermath is asking:

Credit card companies don't care a flip whether you PIF before or after the statement drops. They're not making or losing money on this, other than some negligible amount of interest from your paying 5 days early, I suppose.

PIF'ing before the statement is only to reduce your util for scoring purposes, or because you've become compulsive, as Timothy said. (Hmmm, Timothy, how did you know that about me? )

As long as they get their money on time without them having to clear their throats at you, then they're happy.

Re: What exactly is an Amex PIF?

Anonymous — Sat, 31 May 2008 14:18:07 GMT

a charge card has to be PIF to be kept in good standing, if you paying before the statement you aren't using your grace period, and IF the CRA has it cooded correctly it doesn't count for revovling util. so then the only reason to pay before cut date, is if you want 1 less account reporting a balance to combat "To many acconts with balances"

Re: What exactly is an Amex PIF?

Anonymous — Sat, 31 May 2008 16:49:11 GMT

rbbyrbsn wrote:

a charge card has to be PIF to be kept in good standing, if you paying before the statement you aren't using your grace period, and IF the CRA has it cooded correctly it doesn't count for revovling util. so then the only reason to pay before cut date, is if you want 1 less account reporting a balance to combat "To many acconts with balances"

Amex Delta Gold is a credit card. It will be counted in utilization, so PIFfing before the statement helps control that. Yes, you give up your grace period that way. It really just comes down to which is more important to you: being able to float a balance for 25 to 55 days, or controlling the balance reported to the CRAs.

Re: What exactly is an Amex PIF?

Anonymous — Sat, 31 May 2008 17:04:16 GMT

@Anonymous wrote:

@Anonymous wrote:

a charge card has to be PIF to be kept in good standing, if you paying before the statement you aren't using your grace period, and IF the CRA has it cooded correctly it doesn't count for revovling util. so then the only reason to pay before cut date, is if you want 1 less account reporting a balance to combat "To many acconts with balances"

Amex Delta Gold is a credit card. It will be counted in utilization, so PIFfing before the statement helps control that. Yes, you give up your grace period that way. It really just comes down to which is more important to you: being able to float a balance for 25 to 55 days, or controlling the balance reported to the CRAs.

How exactly does that involve giving up a grace period. I'm kinda fuzzy on that.

Re: What exactly is an Amex PIF?

haulingthescoreup — Sat, 31 May 2008 18:04:54 GMT

@Anonymous wrote:

How exactly does that involve giving up a grace period. I'm kinda fuzzy on that.

There are several grace periods involved with credit cards. This is the one where your statement posts on the 1st, but your payment isn't due until the 25th. If you pay before the 1st, to minimize your reported util, you lose the ability to delay payment until the 25th. So you're losing 25+ days worth of interest from your checking or savings on whatever your payment is, but I'll bet it isn't that much. I'm thinking max 25 cents or so, unless you're talking about a huge CC bill.

Re: What exactly is an Amex PIF?

MattH — Sat, 31 May 2008 19:14:36 GMT

@haulingthescoreup wrote:
@Anonymous wrote:

How exactly does that involve giving up a grace period. I'm kinda fuzzy on that.

There are several grace periods involved with credit cards. This is the one where your statement posts on the 1st, but your payment isn't due until the 25th. If you pay before the 1st, to minimize your reported util, you lose the ability to delay payment until the 25th. So you're losing 25+ days worth of interest from your checking or savings on whatever your payment is, but I'll bet it isn't that much. I'm thinking max 25 cents or so, unless you're talking about a huge CC bill.

When I first had a checking account back in the Seventies inflation was running in double digits so interest rates were similarly high and people actually cared about a few days of interest. Nowadays I tend to make an electronic payment immediately upon receipt of the bill simply to minimize the chance I'll forget that bill. I do like online banking because every weekend it takes me about five minutes to scan my list of creditors sorted by date of last payment making sure there's nobody I've neglected. In the days when I paid by paper checks about twice a year I'd get the polite reminder form letter and immediately call them to pay by phone before it got reported as a late on my credit history. Since switching to online banking I no longer neglect payments.

Re: What exactly is an Amex PIF?

Anonymous — Sat, 31 May 2008 19:30:16 GMT

@haulingthescoreup wrote:
@Anonymous wrote:

How exactly does that involve giving up a grace period. I'm kinda fuzzy on that.

There are several grace periods involved with credit cards. This is the one where your statement posts on the 1st, but your payment isn't due until the 25th. If you pay before the 1st, to minimize your reported util, you lose the ability to delay payment until the 25th. So you're losing 25+ days worth of interest from your checking or savings on whatever your payment is, but I'll bet it isn't that much. I'm thinking max 25 cents or so, unless you're talking about a huge CC bill.

Ohhhhhh. I gotcha. Thanks!

Re: What exactly is an Amex PIF?

Anonymous — Sat, 31 May 2008 19:50:53 GMT

@haulingthescoreup wrote:

@Anonymous wrote:

How exactly does that involve giving up a grace period. I'm kinda fuzzy on that.

There are several grace periods involved with credit cards. This is the one where your statement posts on the 1st, but your payment isn't due until the 25th. If you pay before the 1st, to minimize your reported util, you lose the ability to delay payment until the 25th. So you're losing 25+ days worth of interest from your checking or savings on whatever your payment is, but I'll bet it isn't that much. I'm thinking max 25 cents or so, unless you're talking about a huge CC bill.

Yep, what she said!