PIF: Statement bal vs Reported bal. Opinions?

[Anonymous]

Does anyone have an opinion as to whether a PIF (statement balance) is any "worse" than a PIF of current (total) balance when viewed from the lens of the lender?  Either way they aren't making interest.  I would assume that both are equally as appealing in terms of being a Transactor and a low risk borrower. 

You often hear that certain creditors "like PIF" ... Amex is a good example.  "Amex likes when people PIF."  Are we just talking statement balance here, or are there certain lenders out there that legitimately prefer zero statement balances on revolvers?

[SBR249]

I can't really think of any difference from the perspective of the lender in question in terms of how they would view the borrower. 

However, I would think that any creditor would be preferred to be repaid sooner rather than later. There's less risk of default and it improves their balance sheet and cash flow. For lenders that depend more on ABS for funding, earlier repayments may mean that they can potentially lend more for the same amount of funding raised which is good for them in that their funding costs go down. So from a macro point of view, I can't imagine why they wouldn't prefer being paid ASAP. 

[Anonymous]

That's sort of what my opinion on it is.  Naturally a lender is always going to prefer getting their money back faster, assuming no interest is being paid.

I guess my real question here is whether or not paying current balance verses just statement balance actually buys you anything.  Is there a chance on their internal scoring or assessment model it could result in a better interest rate, better CLI potential, etc?  I personally doubt it, but would like to hear other opinions.

[Remedios]

I do not think paying prior to statement being cut benefits a person with high score and excellent payment history in any way with the lender. It's useful for those with low CLI or those really mindful of the reported utilization, but lender will not go out of business because we pay 3 weeks later. To my newbie brain, if I was the lender, I would have no initiative to issue you CLI if I know you'll just recycle your CL. I have to do it because my limits are low, but if they were not, i'd let the balance report and then pay it.

[Anonymous]

I think that's a reasonable way to look at it and one that I tend to share.