Why so hard? Let's review PIF 0%

[NoPresetSnarkLimit]

So many questions, so much confusion.

 

Scenario:

Help! I just don't want to pay a single penny in interest, I am trying to earn rewards and cash back and then I get interest charges and it negates my efforts.

 

Answer: If you PIF (pay in full) BEFORE the statement cuts aka statement date aka statement closes, you will never ever ever owe interest. If you were carrying a balance aka owed money from the month before yes you will owe interest on your previous balance.

 

This means you need to know the date your statement closes, please note: this does NOT mean the due date. The due date should be fairly clear, when the payment is due. If you are a true transactor (one who does not pay interest) you could care less when the due date is because your statements will always be a zero balance due.

The statement date is NOT when it's due

The statement date is NOT when you receive the statement

Any balance shown on your statement WILL get reported to your credit file (with a few exceptions like Chase who will report $0 if you pay it fast enough.

Any transactions throughout the month will not go on your credit report if you pay in full BEFORE the statement date.

 

Now then, the $2 trick explained at length elsewhere: in this case you WANT $2 to report on your credit file, therefore you will make sure that on the statement date your account shows that you owe $2, this will get reported on your credit file.

You only do this with ONE of your credit cards per month, every other credit cards should be at $0. If you have a balance on any other credit card; for instance if you are taking advantage of a zero interest offer, the $2 trick is useless to you.*

 

*for purposes of this discussion in regards to PIF and zero interest. As most of you know there are other tricks that we might call the $0.99 trick, the $1.99 trick, the $2.01 trick so as not to confuse.

 

Discuss, correct, add your nuances, enjoy.

Bottom line, don't pay interest. Yes I know we are not all there yet, we all have different circumstances, I'm not trying to be condescending so please don't take it that way, I want you to live debt free and reap the rewards of using credit cards. If you do pay interest I sincerely thank you, it's your interest charges that allow the credit card companies to give me free money to be a customer, they hope I will fall, they hope I will slip up, they hope when they give me their cards that I will pay them interest forever, they will be disappointed.

 

[mendelssohn]

 

Thank you. There have been too many "I've been charged interest" threads lately, and also explanations from members that are not clear.

[myfrogger]

I know many subscribe to this line of thinking but I always recommend letting balances report and then paying in full. That lets the world know you can use credit and pay it back. If you always pay before the statement date, it makes it look like you never use credit. That may help you for scoring purposes but not for underwriting purposes.

 

Sure--when applying for credit, make sure minimal balances report for scoring and DTI purposes. Or on the flip side of the argument, run up your balances to show lenders that you need high credit limits and that you know how to manage high credit limits.

 

I submit to you all that generally there is no need to manipulate your credit on a month to month basis.

Edited May 24, 2015 by myfrogger

[mendelssohn]

I know many subscribe to this line of thinking but I always recommend letting balances report and then paying in full. That lets the world know I can use credit and pay it back. If you always pay before the statement date, it makes it look like you never use credit. That may help you for scoring purposes but not for underwriting purposes.

 

Sure--when applying for credit, make sure minimal balances report for scoring and DTI purposes. Or on the flip side of the argument, run up your balances to show lenders that you need high credit limits and that you know how to manage high credit limits.

 

I submit to you all that generally there is no need to manipulate your credit on a month to month basis.

 

 

Incorrect. Payment history is listed on your credit reports.

 

I have had several recon calls where the UW has complimented me on my rebuilding, noting the usage but low reported balances.

 

Regarding fine tuning credit on an ongoing basis, I suggest you read BobWang's rebucketing experience. 10% utilization rebucketed him and it took him 3 months to be placed back in his original bucket.

Edited May 24, 2015 by mendelssohn

[myfrogger]

I just checked two versions of my online credit reports and an experian paper report. All report a historical balance each month. A lender can definitely see internal records of all usage but I can't verify that historical payment data is reported to the credit bureaus. I want to yield respect to someone on the board with 20k post count, but it seems like a stretch that several underwriters would comment on usage vs reported balances.

 

I stand by my post and that a credit report does not always need fine tuning on a month-to-month basis. I encourage others to read more on here and form their own theories and strategy. I can for sure agree with the OP not to pay interest. However you decide to pay...just pay.

[mendelssohn]

I just checked two versions of my online credit reports and an experian paper report. All report a historical balance each month. A lender can definitely see internal records of all usage but I can't verify that historical payment data is reported to the credit bureaus. I want to yield respect to someone on the board with 20k post count, but it seems like a stretch that several underwriters would comment on usage vs reported balances.

 

I stand by my post and that a credit report does not always need fine tuning on a month-to-month basis. I encourage others to read more on here and form their own theories and strategy. I can for sure agree with the OP not to pay interest. However you decide to pay...just pay.

You're calling me a liar, and I have no reason to lie.

 

I posted facts about how payments are reported. You can't dispute that. Hard copy reports have more data! You should know this by now.

 

Anyone who doubts Bob Wang's honestly needs to do some reading and research. He has contributed more data to CB than anyone else.

 

Someone like yourself seeking high credit limits for the purpose of cash advances is in no way an authority on utilization anyway.

Edited May 24, 2015 by mendelssohn

[cashnocredit]

I just checked two versions of my online credit reports and an experian paper report. All report a historical balance each month. A lender can definitely see internal records of all usage but I can't verify that historical payment data is reported to the credit bureaus. I want to yield respect to someone on the board with 20k post count, but it seems like a stretch that several underwriters would comment on usage vs reported balances.

 

I stand by my post and that a credit report does not always need fine tuning on a month-to-month basis. I encourage others to read more on here and form their own theories and strategy. I can for sure agree with the OP not to pay interest. However you decide to pay...just pay.

 

Most, but not all, creditors report payments in addition to balances. Other creditors will not see usage on cards that don't report payments.

 

I generally use autopay on the due date. This is sufficient to avoid all interest charges but it does not maximize FICO scores prior to the rarely used FICO 9.

 

RDA's method is the best for avoiding interest and maximizing FICO at the same time. I would use it if I felt I was on the edge FICO wise and anticipated possibly aping for new credit.

[myfrogger]

I didn't intend to call you a liar...only a troller...extending the truth and acting as an definitive authority on a subject when all either of us can do is offer our opinions and share our experiences. A lot of this is educated theory and what I actually enjoy about BobWang is that he's trying to make this all more of a science.

 

Discredit me and how I want to use my good credit if you wish but all I know is that I've spent a lot of time learning on this board and following others that went before me. It worked. It built me to 780+ scores and into the range of $30k-$50k credit limits. That doesn't make me an authority on the subject but it does make me a good student.

[mendelssohn]

I didn't intend to call you a liar...only a troller...extending the truth and acting as an definitive authority on a subject when all either of us can do is offer our opinions and share our experiences. A lot of this is educated theory and what I actually enjoy about BobWang is that he's trying to make this all more of a science.

 

Discredit me and how I want to use my good credit if you wish but all I know is that I've spent a lot of time learning on this board and following others that went before me. It worked. It built me to 780+ scores and into the range of $30k-$50k credit limits. That doesn't make me an authority on the subject but it does make me a good student.

I'm not trolling, I posted facts.

 

Yes, I'm a bit irritated because I don't appreciate being called a liar, or now a troll.

[cashnocredit]

I just checked two versions of my online credit reports and an experian paper report. All report a historical balance each month. A lender can definitely see internal records of all usage but I can't verify that historical payment data is reported to the credit bureaus. I want to yield respect to someone on the board with 20k post count, but it seems like a stretch that several underwriters would comment on usage vs reported balances.

 

I stand by my post and that a credit report does not always need fine tuning on a month-to-month basis. I encourage others to read more on here and form their own theories and strategy. I can for sure agree with the OP not to pay interest. However you decide to pay...just pay.

 

I can verify it. Most creditors report payments. I've seen them for years on my reports. Further, it's not a stretch that underwriters could comment on it since payments that exceed minimums have been shown to be highly predictive of risk. I'd sure look at it. Whether I would comment would depend on the creditor's policies.

[shifter]

I've also seen my payments on my hard copies.

 

They're there for all my creditors.

 

Bad idea to start calling BISKs liars or trolls....

[mrjuggalo9er]

Telling can be fun just go to myfico

[cv91915]

 

I didn't intend to call you a liar...only a troller...extending the truth and acting as an definitive authority on a subject when all either of us can do is offer our opinions and share our experiences. A lot of this is educated theory and what I actually enjoy about BobWang is that he's trying to make this all more of a science.

 

Discredit me and how I want to use my good credit if you wish but all I know is that I've spent a lot of time learning on this board and following others that went before me. It worked. It built me to 780+ scores and into the range of $30k-$50k credit limits. That doesn't make me an authority on the subject but it does make me a good student.

I'm not trolling, I posted facts.

 

Yes, I'm a bit irritated because I don't appreciate being called a liar, or now a troll.

 

 

You seem more like a Teletubby than a troll to me.

 

[fury1995]

The infamous triangle..

[Medion]

You guys are giving me flashbacks to a scene from "Red Vs. Blue."

 

Caboose - "My dad always said, why buy the cow when you can get the milk for free?"

 

Church - "Hey, are you calling my girlfriend a cow?"

 

Tucker - "No, I think he's calling your girlfriend a slut!"

 

MyFrogger - check your PMs

[NoPresetSnarkLimit]

[cra_trick]

Does anyone know if closing time is 12:01 am midnight (1st min of closing date) or 12:59 pm (last min of closing date)?

 

My scenario is DD does not hit until 12:01 am ( zzzzz'sss ) on statement closing date and I am wondering if I can pay balance the morning of closing date when bank is actually open so the balance is reflected before closing statement - preferably before "1pm" as I noticed some bank state deposit after 1pm will be available next business day.

[NoPresetSnarkLimit]

Which bank?

[Second Chances]

I've also seen my payments on my hard copies.

 

They're there for all my creditors.

 

Bad idea to start calling BISKs liars or trolls....

 

I don't have any hard copies handy right now and I don't remember this that well at the moment. If you pay multiple times in a month, does it state you total amount of payments that month or just your last one?

[CTSoxFan]

 

I just checked two versions of my online credit reports and an experian paper report. All report a historical balance each month. A lender can definitely see internal records of all usage but I can't verify that historical payment data is reported to the credit bureaus. I want to yield respect to someone on the board with 20k post count, but it seems like a stretch that several underwriters would comment on usage vs reported balances.

 

I stand by my post and that a credit report does not always need fine tuning on a month-to-month basis. I encourage others to read more on here and form their own theories and strategy. I can for sure agree with the OP not to pay interest. However you decide to pay...just pay.

 

Most, but not all, creditors report payments in addition to balances. Other creditors will not see usage on cards that don't report payments.

 

I generally use autopay on the due date. This is sufficient to avoid all interest charges but it does not maximize FICO scores prior to the rarely used FICO 9.

 

RDA's method is the best for avoiding interest and maximizing FICO at the same time. I would use it if I felt I was on the edge FICO wise and anticipated possibly aping for new credit.

 

 

^ This. As long as you PIF by the due date you will never pay interest. Personally, I don't see the need for maximizing FICO, as the difference between 770 and 800 is nil, at least at this score range. I would rather take advantage of the 40-50 day free loan.

 

Also - As far as all the name calling, etc. Knock it off and stick to the topic.

[Orly]

 

 

 

I can verify it. Most creditors report payments. I've seen them for years on my reports. Further, it's not a stretch that underwriters could comment on it since payments that exceed minimums have been shown to be highly predictive of risk. I'd sure look at it. Whether I would comment would depend on the creditor's policies.

 

I'm guessing that your saying that paying more than the minimum is predictive in a positive manner in relation to risk?

[cashnocredit]

 

 

 

 

I can verify it. Most creditors report payments. I've seen them for years on my reports. Further, it's not a stretch that underwriters could comment on it since payments that exceed minimums have been shown to be highly predictive of risk. I'd sure look at it. Whether I would comment would depend on the creditor's policies.

 

I'm guessing that your saying that paying more than the minimum is predictive in a positive manner in relation to risk?

 

 

The amount that payments exceed minimums is highly predictive of risk. Scoring only cares about how predictive a factor is, not the direction, to be useful. In this case though, and not surprisingly, the risk of default is much lower when payments are made that exceed the minimum by a factor of two or more.

[Orly]

 

 

 

 

 

I can verify it. Most creditors report payments. I've seen them for years on my reports. Further, it's not a stretch that underwriters could comment on it since payments that exceed minimums have been shown to be highly predictive of risk. I'd sure look at it. Whether I would comment would depend on the creditor's policies.

 

I'm guessing that your saying that paying more than the minimum is predictive in a positive manner in relation to risk?

 

 

The amount that payments exceed minimums is highly predictive of risk. Scoring only cares about how predictive a factor is, not the direction, to be useful. In this case though, and not surprisingly, the risk of default is much lower when payments are made that exceed the minimum by a factor of two or more.

 

Got it. Thx

[Cappy]

Btw, just to point out...

 

Chase I.E.

 

If you were carrying a balance say for a few months and you PIF before the next statement, there would be an interest charge even though you PIF.

[cashnocredit]

Btw, just to point out...

 

Chase I.E.

 

If you were carrying a balance say for a few months and you PIF before the next statement, there would be an interest charge even though you PIF.

 

That's true for the majority of revolvers. The grace period only applies for new charges after the last balance was PIF. It's also why one should not use a card after a BT to it was made.