How exactly does PIF work?

[Anonymous]

Ok my Cap1 statement cut. I had a zero balance for a few weeks but somehow it reported $8.55 as the balance ($5 of that is the AF). I immediately PIF'd.

So I think Cap1 told me the statement balance is what they will report. In that case, will there ever be a way to have a 0 balance report?

Am I paying interest on the $5 AF?

I was so excited to see the effect this 0 balance would have on my scores and now it doesn't look like it will happen. ;(

[twist7d7]

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@Anonymous wrote:
Ok my Cap1 statement cut. I had a zero balance for a few weeks but somehow it reported $8.55 as the balance ($5 of that is the AF). I immediately PIF'd.

So I think Cap1 told me the statement balance is what they will report. In that case, will there ever be a way to have a 0 balance report?

Am I paying interest on the $5 AF?

I was so excited to see the effect this 0 balance would have on my scores and now it doesn't look like it will happen. ;(

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If you pay BEFORE it closes then it will report 0. You only pay intrest on a ballance carried over into the next month. so if you were to charge 150 let the statement cut and pay the min 35 payment. You would pay intrest on the 115 provided you didnt make another payment before the payment due date.

[Anonymous]

Thanks but how do you make a payment if the balance is already 0? It was 0, statement cut, then it was $8.55.

[twist7d7]

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@Anonymous wrote:
Thanks but how do you make a payment if the balance is already 0? It was 0, statement cut, then it was $8.55.

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Weird. Ive never heard of that. Ive also never payed AFs so maybe thats just how they are billed. hopfuly someone that knows better will chime in soon. Maybe a call to a CSR will be more helpful. also you might be able to get the AF waved

[taxi818]

Ez. Pay in full on due date. Don't use card for 3 days after your due date. And it will have 0 balance on statement. Even if you use on day 3. It will still be pending and will not reflect on statement. 

[red259]

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@Anonymous wrote:
Ok my Cap1 statement cut. I had a zero balance for a few weeks but somehow it reported $8.55 as the balance ($5 of that is the AF). I immediately PIF'd.

So I think Cap1 told me the statement balance is what they will report. In that case, will there ever be a way to have a 0 balance report?

Am I paying interest on the $5 AF?

I was so excited to see the effect this 0 balance would have on my scores and now it doesn't look like it will happen. ;(

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You only pay interest if you carrt a balance (meaning do not pay the full balance by the DUE date). To not let a balance report in the future you want to pay off any amount you owe the card company a few days prior to the statement cut and then not use the card, until the statement is cut at the end of the cycle. If you have pending charges that have not cleared yet and its preventing you from paying and your worried about it reporting then you cn do a PUSH payment from your bank where you tell your bank to send the card company a check in X amount to cover any opf the pending charges. 

[Anonymous]

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@taxi818 wrote:

Ez. Pay in full on due date. Don't use card for 3 days after your due date. And it will have 0 balance on statement. Even if you use on day 3. It will still be pending and will not reflect on statement. 

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This doesn't work with annual (or monthly) fees.  OP, is your monthly or annual?    The issuer will add these on the day the statement cuts, so you have to push some payment from your bank a few days before to make the balance 0.

[DaveSignal]

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@Anonymous wrote:

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@taxi818 wrote:

Ez. Pay in full on due date. Don't use card for 3 days after your due date. And it will have 0 balance on statement. Even if you use on day 3. It will still be pending and will not reflect on statement. 

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This doesn't work with annual (or monthly) fees.  OP, is your monthly or annual?    The issuer will add these on the day the statement cuts, so you have to push some payment from your bank a few days before to make the balance 0.

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+1.  With any kind of fee that posts with the statement on the statement date, pushing payments is really the only way to make this card report $0 when the fee is going to be billed.  Is this card worth the annual fee?  Maybe you could try to get it removed entirely, or use a different card to report a $0 balance, since this one requires more advance planning.

[carlosjgg]

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@Anonymous wrote:
Ok my Cap1 statement cut. I had a zero balance for a few weeks but somehow it reported $8.55 as the balance ($5 of that is the AF). I immediately PIF'd.

So I think Cap1 told me the statement balance is what they will report. In that case, will there ever be a way to have a 0 balance report?

Am I paying interest on the $5 AF?

I was so excited to see the effect this 0 balance would have on my scores and now it doesn't look like it will happen. ;(

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if you want it to report 0 balance just send then you balance plus 5.00 or whatever the fee is before statement cuts, lets say you have a 100 balance and the fee is 5 send then 105 so when they add the 5 fee the balance will be 0

[taxi818]

Cap. 1 does not have card that charge. 5 af each month. So I'm not
Sure if op knows what he is talking about.