Not PIF but not minimum?

[Anonymous]

Argument with my roommate.

Say you have a 5000 limit. Spending 3000 on a large purchase. Is it not okay to not pay in full, say minimum was 50 but you pay say... 150.. Every month? Does this really scare away lenders? I mean if it's PIF all the time wouldn't it just be a charge card? When is it(if) really okay to pay your CCs over time?

[Anonymous]

No edit button on mobile. Just FYI the 150 on a 3k bal is Just an example I'm using.

[OmarGB9]

Shouldn't be any issues as long as you pay on time and more than the minimum. Most people here will tell you to PIF whenever possible, and that is a good idea, however it's not always possible. IMO, it's okay to carry a balance if you have 0% promo financing. Otherwise if you don't have 0% and are paying interest on your purchase when you're capable of paying in full, you're just wasting money.

[Anonymous]

The only thing that could scare away lenders is if it makes your utilization too high and then that would immediately go away when the balance is paid down so no long term effects. PIF is recommended to avoid interest charges and increase your score for immediate needs but long term as far as lenders are concerned zero problem

[vanillabean]

Credit card companies have been happy with my five percent.

[kdm31091]

I think as long as you are paying more than the minimum as in 2 or 3 times, the lender wont care. Your util will suffer and thus your score but life happens and sometimes its unavoidable. It will recover as soon as you pay it off.

If everyone was able to always PIF except on 0 percent offers, credit cards with rewards likely wouldnt exist. Issuers have to make money somehow for these programs. While nobody should ideally pay interest, it happens sooner or later to plenty of people. Pay more than the minimum and IMO youre fine.

[icyhot]

I was having a similar argument with my mom. I said "you should use credit cards for what you can afford to pay back in a timely manner" and she said "NO credit cards are for what you can't afford and just make the minimum payments" I wish I knew she had this mindset before making her an AU on my cards :-/

[kdm31091]

Your mother sounds very irresponsible. No one should have the mindset of "charge and pay minimums". Cant you remove her as an AU?

[icyhot]

I just don't give her the cards.

[Anonymous]

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@icyhot wrote:
I just don't give her the cards.

Yes but as an AU< while she can't make actual changes to the account or anything like that, she COULD call up the credit card company and obtain the credit card numbers because she is listed as AU and AU can do that. Not saying she would but if a financial emergency for her arose, you have to consider that possibility. By making her an AU you have given her certain (albeit limited) privileges that you would have full responsibility for.