topic Re: PIF in Understanding FICO® Scoring

PIF

Anonymous — Mon, 19 May 2008 00:06:28 GMT

What is the score effect of going paid in full on all ccs from carrying a balance on one card of $2000. The total credit before and after is $27,200.

Thanks.

Re: PIF

Anonymous — Mon, 19 May 2008 02:33:06 GMT

creditwizard2 wrote:
What is the score effect of going paid in full on all ccs from carrying a balance on one card of $2000. The total credit before and after is $27,200.

Thanks.

Not much effect at all, as your utilization is already less than 10%. In fact, you may actually lose a few points for showing $0 balances on all revolving accounts. Ideally, you want to show a total utilization of 1-9%.

Re: PIF

Anonymous — Mon, 19 May 2008 02:36:44 GMT

Were your other cards reporting 0 balances on their statement date or are you simply PIF before the due date? Even if you PIF your CR will show the balance on your statement date, thus showing you utilizing credit at some percentage.

If you had 0 balances and now have all 0 balances you might not experience a score increase because I believe the CRA FICO formulas like you to have a tiny balance (1-9%) on at least one revolving account.

So to really answer your question we would need to know -

What was the limit on the card with the 2k balance

Are you PIF before your statement date or after and if after what sort of a statement balances do you have?

Unless the 2k figure moves you between a bracket, I doubt your score will increase much, as 2k on 27k+ credit is already below 10%. But if you have other balances reporting before you PIF....then you could see an increase of 5-7 points for lowering your util. But that is speculative without additional information.

Re: PIF

Anonymous — Mon, 19 May 2008 02:45:58 GMT

debtisgood wrote:

Were your other cards reporting 0 balances on their statement date or are you simply PIF before the due date?

Two other cards. One, BOA MasterCard limit $7200, util 0. Two, Chase Visa, brand new, no usage $10,000 limit.

I'm not PIF yet. I had $2000, and just paid $1500 before the statement hit. The new balance is now $500. I have a payment scheduled for them for $500 6/3.

What was the limit on the card with the 2k balance

10k

Are you PIF before your statement date or after and if after what sort of a statement balances do you have?

See above. Now sitting on $500 statement due date 6/15.

Message Edited by creditwizard2 on 05-18-2008 07:45 PM

Message Edited by creditwizard2 on 05-18-2008 07:45 PM

Re: PIF

Anonymous — Mon, 19 May 2008 21:34:52 GMT

I wouldn't expect much of a gain. Your overall util was low to begin with....sometimes people get hit for not having a balance reporting. You might see a 3-5 point score increase for having your one card with a balance below 20%, but I would make sure you continue leave a bit of the balance on before the statement date...I don't think all your cards reporting as 0 helps on most scores

Re: PIF

RobertEG — Tue, 20 May 2008 01:54:46 GMT

Wiz, that is an age-old question on here that has no answer other than anecdotal experiences. Many are firmly convinced, and probably rightfully, that the magic equation is:

At least half of accounts with zero balances reproted to the CRA, but not all. The consensus seems to be to have at least one with a balance that does not lead to a util on that card of over 9%, or a total %util of not over 9% on all revolving TLs..

Some go to the tweak extreme of leaving a balance of under 10% on one or more, but less than half, of cards at the time the statement drops (assumed to be the CRA report date), and then reserving the full PIF for a few days after the CRA report date to avoid any balance carryover.

That is a lot of work, and something I leave to the FICO TweakMeisters!

Re: PIF

smallfry — Tue, 20 May 2008 02:06:54 GMT

@RobertEG wrote:
Wiz, that is an age-old question on here that has no answer other than anecdotal experiences. Many are firmly convinced, and probably rightfully, that the magic equation is:
At least half of accounts with zero balances reproted to the CRA, but not all. The consensus seems to be to have at least one with a balance that does not lead to a util on that card of over 9%, or a total %util of not over 9% on all revolving TLs..
Some go to the tweak extreme of leaving a balance of under 10% on one or more, but less than half, of cards at the time the statement drops (assumed to be the CRA report date), and then reserving the full PIF for a few days after the CRA report date to avoid any balance carryover.
That is a lot of work, and something I leave to the FICO TweakMeisters!

That's a lot of work RG?

Re: PIF

RobertEG — Tue, 20 May 2008 02:15:48 GMT

Yup, because unless I am planning to app for new credit that month, then I am not going to worry about a double pay to keep util above zero one day, and then two days later bring it down to zero just to tweak my FICO when it is meaningless every month.

I dont wear my monthly FICO like a banner.

Re: PIF

Anonymous — Tue, 20 May 2008 02:20:23 GMT

@RobertEG wrote:
Wiz, that is an age-old question on here that has no answer other than anecdotal experiences.

Cool. As long as the score change is small, I'm happy to PIF and declare no cc debt for the first time in a long time ;-)

-cw2

Re: PIF

smallfry — Tue, 20 May 2008 02:36:25 GMT

@RobertEG wrote:
Yup, because unless I am planning to app for new credit that month, then I am not going to worry about a double pay to keep util above zero one day, and then two days later bring it down to zero just to tweak my FICO when it is meaningless every month.
I dont wear my monthly FICO like a banner.

I don't double pay any credit cards and just let a couple revolve a balance every month. Then I pay those two and rotate. I only have a few cards to rotate. I sit down with my bills every week for 5 minutes. That's it.

Re: PIF

RobertEG — Tue, 20 May 2008 06:46:56 GMT

I did not mean to infer that double pay meant paying it twice. I simply meant that you have to make two separate payments to do the tweaking regiment, and even if it takes only five minutes, it is a regiment that gives me nothing, and I can do some really kinky and rewarding thiings in five miinutes that has nothing to do with tracking payments!

LOL! To each his own, according to rewards, both real and perceived.....