PiF vs carrying a balance

[Danizzle]

First of all I want to thank everyone for all the help and teaching you have provided me in the past few short weeks after discovering this amazing site & forums! So many of you have much knowledge and experience than I do. I'm trying to learn as much as possible which brings me to my question:

is it much better (ie for applying or credit scores) to PiF vs carrying a small balance around 1-9% UTL? I did read on another topic that you should only carry a balance on one card if you own multiple cards.

Thanks for any advice and tips!

[myjourney]

---

@Danizzle wrote:

First of all I want to thank everyone for all the help and teaching you have provided me in the past few short weeks after discovering this amazing site & forums! So many of you have much knowledge and experience than I do. I'm trying to learn as much as possible which brings me to my question:

is it much better (ie for applying or credit scores) to PiF vs carrying a small balance around 1-9% UTL? I did read on another topic that you should only carry a balance on one card if you own multiple cards.

Thanks for any advice and tips!

---

To do your best to have 1 card report a balance of 1-9%

[longtimelurker]

And, just to be clear, ideally you should PIF by the due date, the way to optimize the score is to let the 1-9% balance REPORT, so the statement cuts showing this small balance, but then you pay in full to avoid interest charges.  Often, people use "carry a balance" to mean paying less that full, so that the balance is carried to the next month, usually creating an interest charge.

[Steelersboy]

letting the balance report, not carrying one, always pif before due date

i had few hundred dollars on my boa card, i paid it down to about 5% utilization, statement closes tonight, so the balance will report, but will be paid off well before the due date next month

[09Lexie]

+1
Longtimelurker

[SnackTrader]

You never need to carry a balance (this requires you to pay interest) in order to maximize credit score.

This link, and all the links inside it should help you.

http://ficoforums.myfico.com/t5/Credit-Cards/Best-ratio-of-balance-for-multiple-cards/td-p/1898219

[Danizzle]

Thanks guys. I should have clarified that by "carry a balance" I meant report a balance. I always pay at least the closing statement balance and have yet to pay any interest.

[Shock_]

Hi ALL:

I just applied for a Freedom at a Chase branch. Got approved for a low limit of $500 (called EO for CLI, in progress). 

My banker said it was probably due to a charge off I had even though it was well over four years ago and just waiting for it to fall off.

I told him I didn't mind the limit as long as my foot was in the door.

FWIW, he said that auto-CLI's do happen, and recommended that you leave a dollar on your balance or so, that way Chase can make a little money from you, and they may reward you with a CLI. For example, use 100, pay off 99, reolving $1, which is 2 cents interest, etc etc.

Not sure if this is good advice at all, but making yourself look like a profitable customer may allow you a little more "Freedom"

[Dubious]

@Shock_

Chase makes money off you whether or not you carry a balance. Every time you swipe a card, the ccc makes money. It is completely possible for a ccc to make more money from someone who uses the card heavily but PIF than from someone who barely uses the card and carries the small balance. 

[Burned2manybridgesB4]

---

@Dubious wrote:

@Shock_

Chase makes money off you whether or not you carry a balance. Every time you swipe a card, the ccc makes money. It is completely possible for a ccc to make more money from someone who uses the card heavily but PIF than from someone who barely uses the card and carries the small balance. 

---

+1

Anyone else notice the CCs are starting to push world cards now (higher swipe fees)?