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Changing from PIF Before Statement to After Statement Cut

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Community Leader
Super Contributor

Re: Changing from PIF Before Statement to After Statement Cut


@ddm2k1 wrote:

@Wavester64 wrote:

@Gmood1 

 

"..I don't pay any of my CCs before statement cuts. Looking at the cards in my signature. Does it look like banks have an issue with it? lol.."

 

LOL good stuff! Smiley LOL


Nope. But it looks like you have an issue filling out 4506-T's! I see a lot of $25,000.... $25,000.... $25,000... Smiley Happy


@ddm2k1 

Just saw your post. Any reason why I should be filling out those forms?

The only bank that I have that asked for them in the past was Amex.

 

Looks to me, you have no idea of what you're talking about. 

I've moved limits around, to even them out. Has nothing to do with 4506-Ts. More of OCD on my part.😆

 

It's also my choice whether I fill out those forms. These are credits cards, not houses. 😉



My most prized tradeline.
Message 11 of 24
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Regular Contributor

Re: Changing from PIF Before Statement to After Statement Cut

So this *is* something they pay attention to in some of the FICO score products, if not all. 

 

I have been on a pay-before-statement-cut streak as of late, and some of the negs they have to mention include: 

 

1.) "There is no recent activity on revolving and/or open-ended accounts." 

2.) "There are no recent balances on your revolving and/or open-ended accounts." 

3.) "You have no recent activity from a non-mortgage installment loan." 

 

But this should not elicit a knee-jerk reaction out of a borrower. Some messages appear to be damned-if-you-do/don't: 

 

- "You have few accounts that are in good standing" alongside "You have no missed payments on your credit accounts." 

- "You have no recent activity from a non-mortgage installment loan." but I'm sure my score will drop if I take a personal loan right now, for the thrill of it. 

Message 12 of 24
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Valued Contributor

Re: Changing from PIF Before Statement to After Statement Cut

I'm totally guilty of paying before statement hits. Mostly because it makes it easier to track my spend and I like to see my higher scores. I need to get better about that after my app. 





Message 13 of 24
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Super Contributor

Re: Changing from PIF Before Statement to After Statement Cut


@ddm2k1 wrote:

So this *is* something they pay attention to in some of the FICO score products, if not all. 

 

I have been on a pay-before-statement-cut streak as of late, and some of the negs they have to mention include: 

 

1.) "There is no recent activity on revolving and/or open-ended accounts." 

2.) "There are no recent balances on your revolving and/or open-ended accounts." 

3.) "You have no recent activity from a non-mortgage installment loan." 

 

But this should not elicit a knee-jerk reaction out of a borrower. Some messages appear to be damned-if-you-do/don't: 

 

- "You have few accounts that are in good standing" alongside "You have no missed payments on your credit accounts." 

- "You have no recent activity from a non-mortgage installment loan." but I'm sure my score will drop if I take a personal loan right now, for the thrill of it. 


When you do not have a perfect FICO score, the bank is required to fill in three or four Reason Code slots. Congrats on getting mundane Reason Codes. If you let balances report, the RC will likely switch to "too many cards with balances" and the like. 

Check the Understanding FICO Scoring forum, look for Shared Secured Loan info. For a $500 secured loan, properly structured, this can solve the Installment Loan requirement. 

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 14 of 24
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Regular Contributor

Re: Changing from PIF Before Statement to After Statement Cut


@NRB525 wrote:

@ddm2k1 wrote:

So this *is* something they pay attention to in some of the FICO score products, if not all. 

 

I have been on a pay-before-statement-cut streak as of late, and some of the negs they have to mention include: 

 

1.) "There is no recent activity on revolving and/or open-ended accounts." 

2.) "There are no recent balances on your revolving and/or open-ended accounts." 

3.) "You have no recent activity from a non-mortgage installment loan." 

 

But this should not elicit a knee-jerk reaction out of a borrower. Some messages appear to be damned-if-you-do/don't: 

 

- "You have few accounts that are in good standing" alongside "You have no missed payments on your credit accounts." 

- "You have no recent activity from a non-mortgage installment loan." but I'm sure my score will drop if I take a personal loan right now, for the thrill of it. 


When you do not have a perfect FICO score, the bank is required to fill in three or four Reason Code slots. Congrats on getting mundane Reason Codes. If you let balances report, the RC will likely switch to "too many cards with balances" and the like. 

Check the Understanding FICO Scoring forum, look for Shared Secured Loan info. For a $500 secured loan, properly structured, this can solve the Installment Loan requirement. 


Thank you! 

 

I feel that lenders are kind of like girlfriends, in the sense that they will accept you with minor imperfections, but if you screw up badly enough, you'll hear the laundry list of things they hate about you, including the little stuff that they would have otherwise accepted. 

Message 15 of 24
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Valued Contributor

Re: Changing from PIF Before Statement to After Statement Cut

Yes, let your cards report balances. IMO, it doesn't look good to other lenders if your CRs show you aren't using your cards. I never pay before the statement cuts. 

Scores, HPs/24 mos. (updated 4/08/20):
    Experian FICO Score 8 = 827, 2/24
    Experian FICO Score 9 = 834, 2/24
   TransUnion = 832, 1/24
    Equifax = 834, 0/24

Total 2019 rewards, incl. offers/deals = $1,709.07
Avg. rewards rate, incl. offers/deals = 3.92%

Total CL: $264,500

Cards (hover over for CL | interest rate | Date Opened):
Message 16 of 24
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Community Leader
Senior Contributor

Re: Changing from PIF Before Statement to After Statement Cut


@KLEXH25 wrote:

I'm totally guilty of paying before statement hits. Mostly because it makes it easier to track my spend and I like to see my higher scores. I need to get better about that after my app. 


Tracking your spend is a great reason to pay when you're comfortable. I like to close the books so to speak rather than let things drag out. Usually, when I see a balance hit a certain amount, I pay. And if it's a situation where I make a single charge for the sole purpose of having activity on the card, I'll pay as soon as that charge posts.

 

As far as my reports go, all of my cards except one show the date of last payment. So even if the balance is zero, it's obvious that the card has been used. The card that doesn't consistently show the date of last payment generally posts a positive balance each month.

 

My suggestion for most would be to pay in the way that you're comfortable as long as you're not paying interest, you're not subjecting yourself to the "all cards at zero" penalty, and your reported balances are usually at 28.9% or below.

 

If you're in a situation where you need every possible point, leave a tiny balance on a major revolver with all other cards reporting zero.

 

And of course, if you're testing to see how your score reacts to certain reasonable reporting scenarios, there are a lot of things you might try. Smiley Happy

Message 17 of 24
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Regular Contributor

Re: Changing from PIF Before Statement to After Statement Cut

Funny you post this. I just posted about AZEO and PIF. IMO, lenders want to see balances report. I've always PIF before statement cuts, and I switched up literally last week. I'll let you know how my scores react. I'm going from AZEO to letting 8/13 accounts report a balance. No crazy amounts, and it won't hurt me utilization wise since I'm at 6% aggregate right now. 

I honestly think it's going to improve my scores, and also up my chances of getting CLI's easier and more often. I guess we'll see. Good luck

Message 18 of 24
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Frequent Contributor

Re: Changing from PIF Before Statement to After Statement Cut

I always pay after the statement cuts. I've done this from my first CC, since I assumed it was how I was supposed to do it many years ago. Now it's just a habit that I probably won't try to break. I only have 1 charge on my Amex currently, and that "pay it now" button is bugging me, but I'll probably still let that statement cut with the $20.

 

The only time I pay before is if I have a large purchase that I am paying off with cash/money transferred from wife/relative. I apply that to my account right away so I don't have money lingering in my account that isn't for spending.

 

I've not really researched this azeo thing, but I don't know if letting the statement cut is hurting or helping me. My scores are around 800, so I'm not worried. I can't seem to get much higher but I've been opening about 2-4 accounts a year. Garden is probably my best help.


Message 19 of 24
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New Contributor

Re: Changing from PIF Before Statement to After Statement Cut

I do pay prior to the statement being cut. Other lenders will know if you are using your cards since the  payment during any particular month still shows even if the balance is 0. 

Message 20 of 24
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