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

[Anonymous]

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

[Anonymous]

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.

[Anonymous]

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

[woodyman100]

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

[Anonymous]

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.

[Anonymous]

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. 

[Anonymous]

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.

[Anonymous]

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. 

[Anonymous]

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@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. 

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

[Anonymous]

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@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. 

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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.