Quick question about card statement and PIF

[jchu2013]

In order to get higher score and make it look good to my secured card lender ( So I can graduate around 12 months), Should I PIF after I get the statement OR PIF before the statement cut?

As for the future lenders, if i PIF before the statement cut, the reports will show 0% Util and 0 balance each month, they might think I dont use the credit so they dont approve me (or maybe low limit) ?

Thanks for helping!

[OhioCPA]

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@jchu2013 wrote:

In order to get higher score and make it look good to my secured card lender ( So I can graduate around 12 months), Should I PIF after I get the statement OR PIF before the statement cut?

As for the future lenders, if i PIF before the statement cut, the reports will show 0% Util and 0 balance each month, they might think I dont use the credit so they dont approve me (or maybe low limit) ?

Thanks for helping!

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Maybe to both questions. For your current card, BoA likes to see PIF before graduation. I doubt it matters if it is before or after the statement cuts.

To be on the safe side I would wait until after the statement cuts to PIF. This way you look more like a normal card holder. The main reason to PIF before a statement even cuts is to lower utilization for new credit applications. As long as you aren't looking to apply for anything I wouldn't PIF before the statement cuts.

[bettercreditguy1]

Another reason for waiting for your statement. If you pif before the statement prints, your credit report does NOT show any usage or balances against credit limits. It will be more difficult to get additional primeville cards with higher limits if there is no history. +1 to CPA on the answer to or not to pay before the statement prints. (Experian shows your running unpaid balances on all accounts. If you are concerned about showing balances, you can always pif and sock drawer a card for a couple of months before applying for an additional card or personal auto/mortage loan). Then the reported due balance is zero.

[jchu2013]

Ok, then I will pay when the statement cut.

I will apply one round again once I have score on my report, what is the best move to prepare before the applications in term of approval rate and higher credit limit?

[chnceit]

I would report a high balance to show usage then pay it off right away. This will show lenders you are respnsible with your available credit. When you are going to app make sure you have low UTI reporting, below 8% if possible. Some lenders like CITI will deny you if you report a zero balance. But as always YMMV.

[Revelate]

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@chnceit wrote:

I would report a high balance to show usage then pay it off right away. This will show lenders you are respnsible with your available credit. When you are going to app make sure you have low UTI reporting, below 8% if possible. Some lenders like CITI will deny you if you report a zero balance. But as always YMMV.

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This is what I did with my BOFA account.

After that I paid most of my balance ahead of statement cut (I didn't fully PIF, it was my balance card) and I still graduated in 12 months.  Paying before statement cut, or after, is frankly irrelevant in my estimation; BOFA however very much likes near PIF, that was brought up specifically in the discussion of my graduation... they didn't like my carrying a balance for two months at all.  Not impressed with the CSR's understanding of personal finance issues.

Credit cards for short term float, try very short term float with regards to BOFA .