Do you not build credit history when always PIF?

[SPChaser]

I was going along in Reddit and read this post

My question is - if I'm PIF all the time and not allowing a balance to post to a statement, am I really not building credit history with a CCC? Amex, in particular I've read here, pefers transactors rather then revolvers, so would this PIF prior to billing cycle close and never having a statement balance post matter to them? 

[Red1Blue]

Every time you make a payment it is recorded and given credit repot agencies. Even if you do PIF and carry no balance it is still the same,

[SPChaser]

@Red1Blue thanks! I wanted some calcification on this because I'm thinking to myself, how are you not building history with any CCC when you're utilizing the card and PIF prior to close of billing cycle to not incur any interest fees. 

[Brian_Earl_Spilner]

That person doesn't know what they're talking about. What they're saying to do is let your balance report before paying off the bill. It doesn't matter if you pay everything off before or after, you're building history. What you let report is what lenders see when they pull your credit. The more you let report, the higher your utilization is.

[pinkandgrey]

You definitely still build history (and GOOD history at that) when you PIF. The lenders obviously know when you make a payment regardless of what number gets reported to the bureaus. 

You're doing well! 

[Horseshoez]

@SPChaser, the simple way of qualifying what you read on Reddit is, "Because Reddit!"  Basically the information you read is trash.

[GatorGuy]

There are two different issues here. The company the card is with will obviously know every dollar you spend and pay. Amex loves people who makes multiple and frequent payments. 

However what gets reported and what other companies see is a different story. I let balances report so I don't have first hand experience with what actually get reported to the credit bureau if you pay your balance before it reports. But looking at my report it looks like CCs will report current balance, highest balance and if it was paid on time. If you pay before it reports your balance will be zero. So I would be surprised if a company would report an amount of a payment in addition to the current balance. It would be reported as paid on time of course.

But I've seen many instances where people who always let zero balances report have had companies tell them they are not using their existing credit despite them having regular usage. Of course not all companies are like this and not all profiles will prompt this. 

[Red1Blue]

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@GatorGuy wrote:

If you pay before it reports your balance will be zero. So I would be surprised if a company would report an amount of a payment in addition to the current balance. It would be reported as paid on time of course.

It is a federal requirement now that all the payments need to be reported to CRAs before or after the statement cut. I think is it federal  requirement. If not requirment by some one else. I read it at some place and all the CRAs are complying with this. If you pull you report from Annual report it should show the details. I am not sure about all the laws. I  know it is a requirement and I am sure some of the experts will chime in.

[SPChaser]

Thanks everyone for all the feedback 

[Horseshoez]

Virtually all of my cards have been paid in full before the due date and have reported zero balances almost every month (I usually have a few charges post between payment and statement for at least one card).  My credit reports clearly show lots of activity, high balances, and payments.  To suggest it is a "negative" to have one or more cards report a zero balance in a month where there was activity is patently false.  As for cards sitting in a sock drawer, I don't have any of those so I cannot comment.