Question about no activity

[DonDraper]

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@CS800 wrote:

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@DonDraper wrote:

Just a day or two ago I was looking at the terms & conditions of the Barclaycard Rewards MC. and saw something I've never, ever seen in a CC's T&C before (BOLD mine):

In order to receive your new Barclaycard Rewards World MasterCard and to earn and redeem points, we do require that your account be open and in good standing, you maintain creditworthiness, and that there is regular use of your credit card account. Account inactivity, which might include 3 months or longer of non-use of the credit card account, the failure to maintain your account in good standing, and/or changes to your creditworthiness may, at our option, result in account closure which in turn will result in the forfeiture of the unredeemed points you have earned.

I've never seen a creditor state it in such precise terms. Or at all, come to think of it.

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Het at least they stated it clearly as you said.

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Yup. At least one company doesn't unnecessarily make the whole thing a game of chicken. 

[ChesterPDexter]

By the way, this veers slightly off the topic of paying down a credit balance and having it count as activity, but:

Twice recently a CSR (or a credit analyst, in one case) has said or implied that an account appeared "inactive" even though I used the accounts in question but paid the balances off before the statement date.

In the first case, a USAA representative said, "I see you don't use card X... Oh, well, you used it but paid it before the statement date."

In the second case, a Chase credit analyst said she did not see that I had any accounts with Chase, and then when prompted, said, "I see it but it looks like an inactive account."  When I said that I had used it just the previous month but paid it off, she didn't have much to say about it.

I got the impression from both of these conversations that it may be regarded negatively in some contexts when credit accounts are used as fancy debit conduits (used and then paid very quickly.)  Do credit card issuers have a strong preference that statements generate with a balance showing?

[pizzadude]

----->  Do credit card issuers have a strong preference that statements generate with a balance showing?

Yes, they do ~ they want to make money ( interest ) from you, and the only chance they have to do that is if you actually let a balance show.   There is probably a bug somewhere in their systems that makes an account that is PIF before statement date look like an inactive account......

[ChesterPDexter]

Of course, it only makes sense that they would want to make money (via interest.)  But it seems that if you carry a balance and pay interest, you're seen as a credit risk for being indebted.  I've heard over and over here that great credit scores are generated by carrying no balances, and even by  paying before statement dates so that rows of zeros (with at least some exception, so there is some utilization) appear on a credit report. 

I realize that what makes for a good credit score is not necessarily what an individual creditor likes, but what do creditors really like:

1. People who pay before statement dates (I assume they aren't crazy about this)

2. People who pay off each statement balance in full every month (no interest is made this way but I understand they like this...?), or

3. People who carry balances, maybe balances that don't appear "dangerous," and pay lots of interest to the card issuer

???

[CS800]

Well great info. So that could mean that all my PIFs are not effective? I always thought companies like to see a blaance carfied forward but if one PIF it shows ability to pay.

I wonder if this could affect my CLI with AMEX or Chace or Discover for that matter.

[Anonymous]

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@CS800 wrote:

Well great info. So that could mean that all my PIFs are not effective? I always thought companies like to see a blaance carfied forward but if one PIF it shows ability to pay.

I wonder if this could affect my CLI with AMEX or Chace or Discover for that matter.

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It has no impact on the possibility of CLI.

Each lender has its own internal records of your peticular behavior.

All statements show the activity on accounts including multiple payments in the same billing cycle.

EDITED TO ADD: Just because you pay your card in full before the statement hits or when the statement hits does not mean the CC companies are not making money on you. Every time you swipe your card the company is making money on you. Although making interest and penalty charges would generate more money it does not necessarily mean the company likes your business better. 

[RockinRay]

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@Anonymous wrote:

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@CS800 wrote:

Well great info. So that could mean that all my PIFs are not effective? I always thought companies like to see a blaance carfied forward but if one PIF it shows ability to pay.

I wonder if this could affect my CLI with AMEX or Chace or Discover for that matter.

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It has no impact on the possibility of CLI.

Each lender has its own internal records of your peticular behavior.

All statements show the activity on accounts including multiple payments in the same billing cycle.

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A friend of mine used to work in the industry. If you PIF, you are considered a "Dead Beat"...

Don't ya just love that one!

Ray

[Anonymous]

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@RockinRay wrote:

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@Anonymous wrote:

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@CS800 wrote:

Well great info. So that could mean that all my PIFs are not effective? I always thought companies like to see a blaance carfied forward but if one PIF it shows ability to pay.

I wonder if this could affect my CLI with AMEX or Chace or Discover for that matter.

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It has no impact on the possibility of CLI.

Each lender has its own internal records of your peticular behavior.

All statements show the activity on accounts including multiple payments in the same billing cycle.

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A friend of mine used to work in the industry. If you PIF, you are considered a "Dead Beat"...

Don't ya just love that one!

Ray

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I don't disagree that this was the normal attitude they took before every thing went tumbling down. But the last few years IMO have taken a turn and the opposite is the normal now.

[CS800]

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@RockinRay wrote:

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@Anonymous wrote:

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@CS800 wrote:

Well great info. So that could mean that all my PIFs are not effective? I always thought companies like to see a blaance carfied forward but if one PIF it shows ability to pay.

I wonder if this could affect my CLI with AMEX or Chace or Discover for that matter.

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It has no impact on the possibility of CLI.

Each lender has its own internal records of your peticular behavior.

All statements show the activity on accounts including multiple payments in the same billing cycle.

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A friend of mine used to work in the industry. If you PIF, you are considered a "Dead Beat"...

Don't ya just love that one!

Ray

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Catch 22

you pay before statemetn you're  a deadbeat

You don't pay you're a deadbeat

Although if you don't pay, they charge you interest plus late fees which benefits them more

[DonDraper]

Bank of America just hit me for $1.50 in interest, even though I only charged $54, paid it in full two days later (3 weeks before the statement cut), and the only other balance on my account was a 0% balance transfer of $700. I've pretty much always carried a zero balance, except for this 0% BT the last few months.

So I guess every time I use my card now, I'll be hit with interest, even if I PIF the next day? Yeah, they get you coming and going. They make money off you no matter HOW you slice it. But if this is the way it's going to be, it's cost-prohibitive to use this card at all. Into the sock drawer it goes.