topic Re: Another PIF Question in Credit Cards

Another PIF Question

Anonymous — Mon, 02 Jun 2014 00:51:46 GMT

Background: I'm new to the 'cards with no balance' thing. In the last 2 years, I've paid down much of my debt, and finally used a personal loan to pay off the remaining balance on my credit cards. I know from experience that when you stop using a card, the issuer may close it, so I try to use them all at least every few months (though I'm having trouble using the BestBuy card as I've changed my ways and don't buy crap I don't need anymore), and I tend to pay the charges off within 1-2 weeks of making them. In that time, I've brought my scores from 6-650ish to 800ish. I would like to get my last below 800 score up to 800+.

Nutshell: I'd like to know when to pay my cards to 1- avoid paying interest an 2- still receive the benefit of utlizing and paying the credit (to benefit my credit score). I carry no balances.

For one of my cards, here's the scenario.

May 26-30, I charged $1000.

I see no payment due for June 5

I assume the minimum payment on my new $1000 balance will be due JULY 5th. If I pay the entire $1000 by July 5, do I avoid interest? Does soemthign positive get reported to the bureaus?

Current Balance:$1,003.85
Available Credit:$3,096.15

Last Statement Balance:$0.00
Last Statement Date:05/08/2014

Minimum Payment Due:$0.00
Payment Due Date:06/05/2014

I know this topic has been covered, and I've read a few threads, but I want to be sure I'm understanding this correctly.

Re: Another PIF Question

ztnjpv — Mon, 02 Jun 2014 01:22:17 GMT

hard to follow what you're asking.

I'll say this:

-Whatever your statement balance is is what gets reported.

-If you PIF before your statement cuts, you get a zero utilization.

-you should try to report more than 0% for scoring benefits

Does that work? If not, what specifically are you asking?

Re: Another PIF Question

Bman70 — Mon, 02 Jun 2014 01:41:56 GMT

@Anonymous wrote:
Background: I'm new to the 'cards with no balance' thing. In the last 2 years, I've paid down much of my debt, and finally used a personal loan to pay off the remaining balance on my credit cards. I know from experience that when you stop using a card, the issuer may close it, so I try to use them all at least every few months (though I'm having trouble using the BestBuy card as I've changed my ways and don't buy crap I don't need anymore), and I tend to pay the charges off within 1-2 weeks of making them. In that time, I've brought my scores from 6-650ish to 800ish. I would like to get my last below 800 score up to 800+.

Nutshell: I'd like to know when to pay my cards to 1- avoid paying interest an 2- still receive the benefit of utlizing and paying the credit (to benefit my credit score). I carry no balances.
For one of my cards, here's the scenario.
May 26-30, I charged $1000.
I see no payment due for June 5
I assume the minimum payment on my new $1000 balance will be due JULY 5th. If I pay the entire $1000 by July 5, do I avoid interest? Does soemthign positive get reported to the bureaus?

Current Balance:$1,003.85
Available Credit:$3,096.15
Last Statement Balance:$0.00
Last Statement Date:05/08/2014
Minimum Payment Due:$0.00
Payment Due Date:06/05/2014

I know this topic has been covered, and I've read a few threads, but I want to be sure I'm understanding this correctly.

OK, so your last statement cut on May 8, with a due date of June 5. Since there was nothing on the card when that statement cut, the payment due is $0.

You've charged during the month of May, some $1000.

Your next statement will cut, probably June 8 (judging from history) - with a due date of July 5.

You are now in the position of being able to decide how much balance you want to report to the bureaus. Whatever is left on your card on 6/8, when the statement cuts, will report. If you pay it off before 6/8, zero will report. If you pay off $500 by June 8, some $500 will report. If you pay nothing, $1000 will report.

Whatever you leave on there to report June 8, will then have a due date of July 5. If you pay that June 8 balance all by July 5, you won't pay interest.

As far as how much to leave on there to report: Rumor has it under 10% of total limit is best, although I've read that anything under 10% is counted as 0% by FICO. May not be true, gurus will chime in if not. So $1000 is a bit high for a $4000 credit line; you might want to cut it down to $500 before June 8.

Wait, why am I helping you, you already have 800 scores

Re: Another PIF Question

Anonymous — Sat, 28 Jun 2014 22:42:34 GMT

Sorry for the delay in saying THANK YOU. As you can see, i lost access to that account I was abble to see your responses but not to respond.

I appreciate your input.