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Pay in Full strategy (graphic)


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26 replies to this topic

#1 morpheus0327

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Posted 07 August 2017 - 03:49 PM

Hi all.

 

Here is a simple PIF strategy for folks who might be wondering when what and how to PIF. The picture is quite rudimentary. Feel free to add value.

I will update items if you suggest or you may do it by yourself too.

 

So you have a payment due date (say the 6th of every month), a statement closing date (9th) and a new statement date (10th). Look up for these dates in your statement. Best is to pay one day before the due date. Pay balance and if possible the pending charges also. From that point, do not use the card until you get an email about the arrival of next statement. Effectively, you will not use the card for a week - what I call 'dark days' for every card.

 

I hope it helps some one. Would have helped me :-) not too long ago.

 

 

PIF.png


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#2 Rakurai

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Posted 07 August 2017 - 05:49 PM

Nicely done.


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#3 Zobelle

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Posted 07 August 2017 - 06:01 PM

I'll use my card when and however I want, thanks.

And I'll pay it when the statement cuts.
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#4 Rakurai

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Posted 07 August 2017 - 06:39 PM

I'll use my card when and however I want, thanks.

And I'll pay it when the statement cuts.


If you're not trying to optimize scores for an app, sure. Stressing about reported balances all the time sucks.

As a teaching tool, though, this infographic is nice.


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#5 IndyPoolPlayer

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Posted 07 August 2017 - 06:56 PM

Bureau reporting is typically AFTER the statement closes, IME.
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#6 hegemony

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Posted 07 August 2017 - 07:26 PM

i don't understand why it says there are days I should not use my card.


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#7 morpheus0327

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Posted 08 August 2017 - 10:51 AM

Some of my reports showed 'last reported' to fall during the dark days. 

 

I thought it's better to have the payment made before the fields 'Last Updated'/'Last reported' and 'Last Payment Made' that appear on a credit report.

 

Now, YMMV, but my CCT shows 'last reported' to be the first of every month, usually, which of course I can't depend on.

 

i don't understand why it says there are days I should not use my card.

 

So in case I'm trying to PIF, and let $0 report, should I use the card during red days?


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#8 Agrajag

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Posted 08 August 2017 - 10:55 AM

Bureau reporting is typically AFTER the statement closes, IME.

 

+1

 

The creditor will update AFTER the statement cuts.

 

 

Also, from my observations, you can use the card on the date the statement closes and those transactions appear on the next billing statement not the one that is closing that day.


Edited by Agrajag, 08 August 2017 - 10:57 AM.

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#9 morpheus0327

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Posted 08 August 2017 - 11:10 AM

 

Bureau reporting is typically AFTER the statement closes, IME.

 

+1

 

The creditor will update AFTER the statement cuts.

 

 

Also, from my observations, you can use the card on the date the statement closes and those transactions appear on the next billing statement not the one that is closing that day.

 

 

I agree. just gave some extra margin to be sure.


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#10 Agrajag

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Posted 08 August 2017 - 11:26 AM

Personally, when I was trying to ensure that zero balances reported, sans one account, I would use the card up until the day before the statement cut then make the payment to include the pending amounts.

 

 

Now that I plan to hold off on apps until I'm under 5/24 I don't worry about balances reporting.

 

 

 

 

 

March of 2019 seems so far away  :lol:


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#11 morpheus0327

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Posted 08 August 2017 - 11:33 AM

Personally, when I was trying to ensure that zero balances reported, sans one account, I would use the card up until the day before the statement cut then make the payment to include the pending amounts.

 

Now that I plan to hold off on apps until I'm under 5/24 I don't worry about balances reporting.

 

March of 2019 seems so far away  :lol:

 

Hmm... So you said you used to pay (based on the graphic) on the 8th. If that is so, won't the creditor mark 'payment not received', since it's 2 days past due (6th). I've never done that, so curious.

 

March 2019 :-) sure, it's far.


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#12 Agrajag

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Posted 08 August 2017 - 12:10 PM

 

Personally, when I was trying to ensure that zero balances reported, sans one account, I would use the card up until the day before the statement cut then make the payment to include the pending amounts.

 

Now that I plan to hold off on apps until I'm under 5/24 I don't worry about balances reporting.

 

March of 2019 seems so far away  :lol:

 

Hmm... So you said you used to pay (based on the graphic) on the 8th. If that is so, won't the creditor mark 'payment not received', since it's 2 days past due (6th). I've never done that, so curious.

 

March 2019 :-) sure, it's far.

 

 

No, if you always pay in full before the statement cuts then you are paying early.

 

It is never past due. It is never "due" technically for that matter.

 

 

 

i.e.

 

(dates are for reference only)

 

You get a new CC on the 1st of Jan, the statement for that CC cuts on the 30th of Jan.

 

Your payment will be due on the 25th of Feb., the month AFTER the statement cuts.

 

 

So if you always pay in full BEFORE the statement cuts then you are paying before the due date that would come the following month AFTER that statement cut.

 

 

 

 

Doing the above behavior will always show a statement balance of $0 and there will be no payment due because there was nothing remaining on the statement to be paid.


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#13 morpheus0327

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Posted 08 August 2017 - 12:21 PM

No, if you always pay in full before the statement cuts then you are paying early.

 

It is never past due. It is never "due" technically for that matter.

 

Doing the above behavior will always show a statement balance of $0 and there will be no payment due because there was nothing remaining on the statement to be paid.

 

 

Thanks for the explanation, it makes it more clear now.

 

I still have the same question - what if there 'were' balances and the most recent statement clearly indicated a due date? In that case if I made payments right before the statement-cutting date, won't I be technically 2 days past due (based on the graphic)?


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#14 hegemony

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Posted 08 August 2017 - 12:57 PM

I like grace periods.


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#15 Agrajag

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Posted 08 August 2017 - 01:10 PM

If you are not paying in full ( which strictly means paying the entire previous statement balance on the card before the next months statement cuts ) every month then there would be a minimum payment due based off of the balance on the previous statement.

You would definitely want to pay before the due date when it shows that you have a payment due.

What you are describing is not paying in full though. Which is what I described in my scenario.

*You can let balances report and pay them within the grace period ( which I believe is essentially just before the next statement ) and this would be considered paying in full too, I would say at least.

All of this requires paying the ENTIRE balance in full though.

Once you carry a balance for more than one statement you forego the grace period and you are being charged interest on the statement balance and the new charges you make. ( I believe this is correct. Please correct me if not. )

Edited by Agrajag, 08 August 2017 - 01:15 PM.

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#16 morpheus0327

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Posted 08 August 2017 - 01:47 PM

I think it's maybe getting clear that there are two situations, (A) one involving grace period (which hege loves :grin:) and B, where there is a balance from last statement. Of course the customer in situation B, might want to keep paying the existing balance all the way until the grace period shows up (situation A), and then (when there is no due date), they could pay before the statement cuts to keep the $0 going.

 

Coming back to the graphic. Perhaps it is useful only in situation B, when the person is attempting to start paying in full because there was a pre-existing balance. It does not pertain to situation A, since there would be no due date. Only due date in that case is statement's last date.

 

PS: 'B )' without space and quotes yields B)


Edited by morpheus0327, 08 August 2017 - 01:58 PM.

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#17 elbow71203

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Posted 10 August 2017 - 08:53 AM

I think it's better to find out when they report to credit bureaus, pay before that date

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#18 morpheus0327

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Posted 10 August 2017 - 11:42 AM

I think it's better to find out when they report to credit bureaus, pay before that date

Sent from my Pixel XL using Tapatalk

 

That was my first thought too. However, after research, I learned more.

 

Based on my conversations with them, usually the creditors report to bureaus a few days after the new statement is sent. But you can't count on that - one of my creditor namely Capital One reports on the last day of the statement (so, based on the graphic, 9th). The information sent to the bureaus is same as in the statement, i.e. same balance, CL, whether late or on time, etc. I also saw that the bureau-reports (ones that we order directly through them) are likely to contain the correct dates. Usually these reports have two dates: 'Date updated' and 'Last payment made'. Reports that we get from CCT or CK or elsewhere may have any scheme of dates and are not reliable at all.

 

Bottom line, bureau reports will contain my statement balance. So my target must be to make sure that this reported number be $0 (of course that is given I am wanting to PIF under situation A described above - many folks may be in different situations, which is outside the discussion).

 

When would a creditor report to bureaus? Tough question for an exact answer - a CSR can't be trusted there and unless you have a consistent statistic from multiple 'ordered' reports, I won't know how to get that figure. But from what I realized, the bureaus will be provided statement balances only by creditors. So best strategy is, to ensure that my payments post* by the statement date AND I don't incur new purchases during that time.

 

* Payment made on the 7th will post on 8th.


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#19 elbow71203

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Posted 10 August 2017 - 12:41 PM

I think it's better to find out when they report to credit bureaus, pay before that date

Sent from my Pixel XL using Tapatalk

 
That was my first thought too. However, after research, I learned more.
 
Based on my conversations with them, usually the creditors report to bureaus a few days after the new statement is sent. But you can't count on that - one of my creditor namely Capital One reports on the last day of the statement (so, based on the graphic, 9th). The information sent to the bureaus is same as in the statement, i.e. same balance, CL, whether late or on time, etc. I also saw that the bureau-reports (ones that we order directly through them) are likely to contain the correct dates. Usually these reports have two dates: 'Date updated' and 'Last payment made'. Reports that we get from CCT or CK or elsewhere may have any scheme of dates and are not reliable at all.
 
Bottom line, bureau reports will contain my statement balance. So my target must be to make sure that this reported number be $0 (of course that is given I am wanting to PIF under situation A described above - many folks may be in different situations, which is outside the discussion).
 
When would a creditor report to bureaus? Tough question for an exact answer - a CSR can't be trusted there and unless you have a consistent statistic from multiple 'ordered' reports, I won't know how to get that figure. But from what I realized, the bureaus will be provided statement balances only by creditors. So best strategy is, to ensure that my payments post* by the statement date AND I don't incur new purchases during that time.
 
* Payment made on the 7th will post on 8th.
I've used that method and I've gotten my clients to use that method as well the results are increased credit scores... You can look at your credit reports and see when the creditor reports to the credit bureaus it's usually before your payments are due... But I have to say I never pif I keep my utilization at 10% or less

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#20 morpheus0327

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Posted 10 August 2017 - 01:01 PM

You can look at your credit reports and see when the creditor reports to the credit bureaus it's usually before your payments are due... 

I'll have to strongly disagree here. In all my (actual) reports, the creditors mostly report at least one day after statement closing (except Cap 1) and NEVER before payments are due. I would abandon the creditor who'd report my account before the payment due date!

 

 


 

  But I have to say I never pif I keep my utilization at 10% or less

This thread says 'PIF' strategy, not increase FICO strategy. :-)

 

I'm far from 10% to enjoy that...


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#21 elbow71203

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Posted 10 August 2017 - 05:46 PM

You can look at your credit reports and see when the creditor reports to the credit bureaus it's usually before your payments are due... 

I'll have to strongly disagree here. In all my (actual) reports, the creditors mostly report at least one day after statement closing (except Cap 1) and NEVER before payments are due. I would abandon the creditor who'd report my account before the payment due date!
 

 

 
  But I have to say I never pif I keep my utilization at 10% or less

This thread says 'PIF' strategy, not increase FICO strategy. :-)
 
I'm far from 10% to enjoy that...
I can't see that being true check your reports and see when they report...

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#22 breeze

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Posted 10 August 2017 - 06:20 PM

Folks on here have made of hobby of paying before the account reports, so that they always have a 0 balance. I think they've got the dates down pat. Perhaps there is a miscommunication.

 

Anyone know if there's a BobWang master thread on this? He had a way of illustrating these things.



#23 hegemony

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Posted 10 August 2017 - 07:06 PM

 

 

I think it's better to find out when they report to credit bureaus, pay before that date

Sent from my Pixel XL using Tapatalk

 
That was my first thought too. However, after research, I learned more.
 
Based on my conversations with them, usually the creditors report to bureaus a few days after the new statement is sent. But you can't count on that - one of my creditor namely Capital One reports on the last day of the statement (so, based on the graphic, 9th). The information sent to the bureaus is same as in the statement, i.e. same balance, CL, whether late or on time, etc. I also saw that the bureau-reports (ones that we order directly through them) are likely to contain the correct dates. Usually these reports have two dates: 'Date updated' and 'Last payment made'. Reports that we get from CCT or CK or elsewhere may have any scheme of dates and are not reliable at all.
 
Bottom line, bureau reports will contain my statement balance. So my target must be to make sure that this reported number be $0 (of course that is given I am wanting to PIF under situation A described above - many folks may be in different situations, which is outside the discussion).
 
When would a creditor report to bureaus? Tough question for an exact answer - a CSR can't be trusted there and unless you have a consistent statistic from multiple 'ordered' reports, I won't know how to get that figure. But from what I realized, the bureaus will be provided statement balances only by creditors. So best strategy is, to ensure that my payments post* by the statement date AND I don't incur new purchases during that time.
 
* Payment made on the 7th will post on 8th.
I've used that method and I've gotten my clients to use that method as well the results are increased credit scores... You can look at your credit reports and see when the creditor reports to the credit bureaus it's usually before your payments are due... But I have to say I never pif I keep my utilization at 10% or less

Sent from my Pixel XL using Tapatalk

 

clients?


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#24 Agrajag

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Posted 10 August 2017 - 10:29 PM

Folks on here have made of hobby of paying before the account reports, so that they always have a 0 balance. I think they've got the dates down pat. Perhaps there is a miscommunication.

 

Anyone know if there's a BobWang master thread on this? He had a way of illustrating these things.

 

It's my understanding that they all report the statement balance. The exact date of them reporting it varies between bureaus and is not important.

 

The exceptions being rare.

 

Here is the Bob Wang Master Thread on off statement balances being reported

 

https://creditboards.com/forums/index.php?showtopic=471527 


Edited by Agrajag, 10 August 2017 - 10:29 PM.

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#25 breeze

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Posted 10 August 2017 - 11:20 PM

that's it! Thanks.

 

You do have to track each card to see when they report, and if you are trying to have $0 reporting, time your payment.






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