Better to PIF before or after statement cuts?

[inthewoods]

@too-much-time wrote:

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@Anonymous wrote:
Ability to repay obligations.

I understand the concept but if you are not applying for anything then it is useless as utilization has no memory. You're giving up the biggest benefit of CCs which is the grace period.

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You are not serious. How can the grace period be the biggest benefit? After the first month, the lengthening benefit is gone and you are constantly behind, living your life up against a wall. No, the benefits are protection perks and airline/cash rewards!

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Say you have an average balance on your credit card of $3000. Over the long term, you can aim for 5% returns in the market. That’s $150 / year. If you get 2% cash back on the same amount, that’s $720 / year. Both are significant benefits. Of course you shouldn’t live “up against a wall”—if you are living paycheck to paycheck, then you have a problem and should not even be seeking 5% returns. But if you can pay off your credit card before the statement cuts you might have enough of a margin to play.

[Anonymous]

Just did free float on my BCP.  Was due on the 8th.  I know, just couldn't hold out till then.  Getting OCD with cc's! 

[lg8302ch]

Since I no longer have the problem of utilization with my accounts but simply get a ding on my Fico scores for reporting balances on too many accounts  I do not care until I am getting ready to apply for anything new. At that time I certainly will make sure I pay before statement cut on all but 2-3 accounts ...yes I am not doing just one as my apps will go into manual review all the time and I would think like this it is less likely they spot my "little game". The difference for me  is less than 5 points  if 1 or 3 accounts report a balance but if over 50% of my  accounts do that it is 20 + points   But to do it all the time simply does not make any sense to me since there is no memory.  On the other hand it even keeps me in the garden longer as I am not ready to apply for anything that comes around immediately and needs me to at least re-think during the present billing cycle and get my reports app  ready..

[too-much-time]

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@inthewoods wrote:

@too-much-time wrote:

---

@Anonymous wrote:
Ability to repay obligations.

I understand the concept but if you are not applying for anything then it is useless as utilization has no memory. You're giving up the biggest benefit of CCs which is the grace period.

---

You are not serious. How can the grace period be the biggest benefit? After the first month, the lengthening benefit is gone and you are constantly behind, living your life up against a wall. No, the benefits are protection perks and airline/cash rewards!

---

Say you have an average balance on your credit card of $3000. Over the long term, you can aim for 5% returns in the market. That’s $150 / year. If you get 2% cash back on the same amount, that’s $720 / year. Both are significant benefits. Of course you shouldn’t live “up against a wall”—if you are living paycheck to paycheck, then you have a problem and should not even be seeking 5% returns. But if you can pay off your credit card before the statement cuts you might have enough of a margin to play.

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Of those who monthly charge $3000 on personal credit cards on top of non-credit expenses such as mortgage, property taxes, car loan, health insurance and retirement contributions, an annual savings of $150 is probably not a life-guiding priority for most, lol. Countless brief moments on the open stock market by way of your retirement savings provide for a fluctuation of a bigger amount!