Is this paying off a CC...

Andy77 · ‎05-12-2021

If my credit card statement cuts with a 400.00 balance and I use and pay 7k during the statement cycle and the statement closes with a 500.00 balance, since I paid the prior 400.00 balance, does the credit card issuer think that I paid off the card if the next statement cuts with a 500.00 balance ?

Or is "paying off the balance" mean the card has to report with a zero balance ?

Thank you

Sandman771 · ‎05-12-2021

a PIF CC is one that reports a zero balance at time of statement cut.

Starting Score: EQ497/TU496/EX 499
Currently: EQ 620 TU 654 EX 627
in the garden since 6/16/2021

Brian_Earl_Spilner · ‎05-12-2021

It needs to be zeroed.

Andy77 · ‎05-12-2021

I know a PIF is paying the entire balance when the statement cuts, but because I am paying the entire previous statement balance within the new statement cycle, I would believe that I paid the prior balance in full.

What am I missing here ?

dragontears · ‎05-12-2021

@Andy77 wrote:

I know a PIF is paying the entire balance when the statement cuts, but because I am paying the entire previous statement balance within the new statement cycle, I would believe that I paid the prior balance in full.

What am I missing here ?

You are not missing anything, the previous posters are confusing paying in full and reporting 0 balance.

Technically as long as you are paying the statement balance in full before the due date you are "PIF", it is just the obsession with AZEO that confuses some.

longtimelurker · ‎05-12-2021

@Andy77 wrote:

I know a PIF is paying the entire balance when the statement cuts, but because I am paying the entire previous statement balance within the new statement cycle, I would believe that I paid the prior balance in full.

What am I missing here ?

What interpretation are you looking for? If you paid the entire previous statement balance by the due date of that statement, the issuer will indeed agree that you paid the prior balance in full (avoiding interest unless prior statements had not been paid in full).

ETA: beaten by @dragontears

Brian_Earl_Spilner · ‎05-12-2021

@dragontears wrote:
@Andy77 wrote:

I know a PIF is paying the entire balance when the statement cuts, but because I am paying the entire previous statement balance within the new statement cycle, I would believe that I paid the prior balance in full.

What am I missing here ?
You are not missing anything, the previous posters are confusing paying in full and reporting 0 balance.
Technically as long as you are paying the statement balance in full before the due date you are "PIF", it is just the obsession with AZEO that confuses some.

There's no confusion. OP asked if the card would be paid off. There's a balance of $500 on next statement so card isn't paid off. If the question is would they consider the statement paid, then yes, it's paid. It's not just semantics. A 0 balance is needed to put the grace period back in place. Paying off a statement won't do that, paying off a card will.

Remedios · ‎05-12-2021

@Andy77 wrote:

If my credit card statement cuts with a 400.00 balance and I use and pay 7k during the statement cycle and the statement closes with a 500.00 balance, since I paid the prior 400.00 balance, does the credit card issuer think that I paid off the card if the next statement cuts with a 500.00 balance ?

Or is "paying off the balance" mean the card has to report with a zero balance ?

Thank you

Paying off balance means you paid whatever amount is on your statement prior or on due date.

Paying off card (assuming one wasn't carrying a balance) means paying previous statement balance and all new charges. You can regonize that easily, since it has $0.00 for balance, and credit line is intact after payment posts.

dragontears · ‎05-12-2021

@Brian_Earl_Spilner wrote:
@dragontears wrote:
@Andy77 wrote:

I know a PIF is paying the entire balance when the statement cuts, but because I am paying the entire previous statement balance within the new statement cycle, I would believe that I paid the prior balance in full.

What am I missing here ?
You are not missing anything, the previous posters are confusing paying in full and reporting 0 balance.
Technically as long as you are paying the statement balance in full before the due date you are "PIF", it is just the obsession with AZEO that confuses some.
There's no confusion. OP asked if the card would be paid off. There's a balance of $500 on next statement so card isn't paid off. If the question is would they consider the statement paid, then yes, it's paid. It's not just semantics. A 0 balance is needed to put the grace period back in place. Paying off a statement won't do that, paying off a card will.

But it is semantics.

If I have a card with a $400 statement balance and I pay $400 the card is "paid off" in the lender's eyes regardless if I then make new charges or not.

longtimelurker · ‎05-12-2021

@Brian_Earl_Spilner wrote:
A 0 balance is needed to put the grace period back in place. Paying off a statement won't do that, paying off a card will.

Well, a 0 balance is needed to restore a grace period that has gone away. But a card can have a grace period without ever reporting a 0 balance, so long as the statement balance was paid by due date every month. I don't see where OP said that there was a prior balance not paid by due date.