Does It Look Bad to Not Pay Interest On CC?

[sarge12]

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@Anonymous wrote:

So, I've been using my NFCU CashRewards card and PIF each month. That means I really pay no interest. Does that look bad to Navy Fed? I mean, isn't that the point of them giving you a CC (so they can get you on interest)? Just curious about what others think on this?

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I have 15 premium credit cards, and I never pay interest to any of them. I am a strict transactor. In spite of what they would love for you to believe, to PIF every single month does not harm your score...now it is best to wait until after the statement cuts on at least 1 card, but only so you show some revolving credit usage.

[Anonymous]

@Sarge12
I'm not sure what 'they' you're referring to when you say what they want ppl to believe....

Many times in fairness the public is lead astray by well meaning but ill informed ppl, including journalist, talk show host, non-profits, so called counselors, folks that work at some BANK so on and so on

You actually get in, my friend....You stated EXACTLY how to both SHOW USAGE but not allow it is cost you money.

The HUGE problem is too often ppl don't hear or can't seem to pay proper attention....

They HEAR
Spend money, make points, rewards
SHOW a balance on your card, the part about it just being a quick PEEP SHOW for reporting purposes only gets LOST....
Folks stop listening and other times, as mentioned above its the slightly sighted leading the blind!

When there are 2-3 moving parts to any issue it really bothers folks comprehension...It just does..Ppl stop Listening

Grade school math addition OK, subtracting alright by multiplication and definitely division and fractions...Ppl are OUT to Lunch n recess, never to fully return

Most Americans, honestly just do enough comprehending to get by... Not that they CAN'T get it but since it may not seem as FUN as sports history or movie characters and gadgets and phones and apps

Ppl hear just enough to confuse the issue
I tell folks all the time, if you STOP listen pay FULL attention w/o trying to jump the gun to the end thinking 'your' got it' ...You may actually get it

I trust me, I get the whole use your card
Get your statement, Pay your bill is simple easy to get

And it gets a bit different when building and trying to maximize score (before you get to the point where your normal ebbs n flows, don't effect your profile...In a meaningful enough way to fret)
When I'm score manipulation mode, one can't be passive enough to WAIT for a statement to close

They must be viligent about what % of debt is allowed to report via that statement,
Which then can't be all 0%
Must show X amount of usage
Etc
I get it isn't 3rd fade simple but it ain't Grad level difficult, either

Ppl watch Lord of the Rings and keep up with Super Hereos and know who was married to whom and who is who's baby momma...

Like my father told me and I told my kid's NO the times table isn't THAT hard (half way through it's just repeating itself with the numbers reversed) it's just not as of interest to you at this moment, than playing around or watching TV
And later you'll be too BUSY to learn and you'll be too good at guessing at enough of it to ever truly master the overall simple thing....

Same here as @Sarge shared how to do it correctly, most still will muck it up...And NOT because, they 'had' to ...They just won't pay attention to the details....

The headline is so big but nobody reads the rest of the paragraph 😎

[sarge12]

@Gemini101....The "they" I was referring to was the credit card companies that charge very high interest on their cards. These credit card issuers know that paying most of the card balances even before statement cuts actually lowers utilization and increases scores. They also know very well that PIF prior to interest being charged will not lower scores a single point ever. The credit card issuers can not by law tell you a lie and say "paying in full every month will harm your score", but they know many people believe that, and it is in their best interest to let those who are uneducated believe that. They are not obligated to post in large letters to PIF will help your score and save you money, and it is in your best interest to never pay us any interest. That is however true. Those who educate themselves know it is best to pay all credit cards in full except 1 or 2 before the statement cuts, and pay them all in full before the due date. For the best results you want to show revolving credit usage with very low utilization. People do however also put too high importance on utilization sometimes. Utilization is a point in time metric. If you always PIF after a statement cuts one month and it causes your score to drop 20 points that month due to higher utilization...then paying all cards except 1 before the statement cuts the next month will regain those 20 points...every single one of them.