Is PIF all its cracked up to be?

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popamode72
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Postby popamode72 » Fri Dec 12, 2014 2:09 pm

Vattené wrote:Oh, if you're in a 0% purchase APR period that changes things. No interest to worry about, then, so the only factor to consider is the impact on your FICO score (even so, I wouldn't worry about it too much unless I would be applying for a mortgage soon). The ease on your budget alone might make it worth not paying in full.

I just got an Amex myself, but I'm still planning to always PIF. I just don't want to get in the pattern of carrying a balance only to find myself struggling to start PIF again when I need to. I am also doing it in case that helps me with a CLI a few months later when the time comes (not that I even need it...it's just too easy to get caught up in the milking-every-point-out-of-FICO-you-can game).


Would you go for the 3x then? I heard after 25k, Amex will ask you for documentation. The possibility of having a tl over 30k sounds really beneficial though if your income can support it.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)


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Vattené
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Postby Vattené » Fri Dec 12, 2014 2:50 pm

I am honestly not sure how it works (I've just never tried to find out since it hasn't been applicable yet). Is it like many creditors where you just click a button online to see what they give you, only the standard increase is 3X your current line? I called in to request my Discover increase, and over the phone they just asked me how much I would like to request.

If my income and credit supported the CL, I would be perfectly fine with supplying documentation (or at least I'll say that now without knowing how painful the process might be). Again, I truly don't need what I have, and I hope to never have $11,500 outstanding at any point in time, but having a $30,000 TL would be cool in itself. I feel like I'm getting away with something at my current limit....like at any moment someone from Amex is going to call me and say, "oh, we've made a terrible mistake. $11,500 is much too large a limit for you."

Edited to add: I was pleasantly surprised when I found out this initial limit; I would be shocked if I actually got 3X what it is now. It would be more realistic if they started me out at $4,000 because my history doesn't reach back too far, then gave me a 3X on good behavior. I realize practical concerns may limit how far up it goes from here.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

popamode72
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Postby popamode72 » Fri Dec 12, 2014 3:04 pm

Vattené wrote:I am honestly not sure how it works (I've just never tried to find out since it hasn't been applicable yet). Is it like many creditors where you just click a button online to see what they give you, only the standard increase is 3X your current line? I called in to request my Discover increase, and over the phone they just asked me how much I would like to request.

If my income and credit supported the CL, I would be perfectly fine with supplying documentation (or at least I'll say that now without knowing how painful the process might be). Again, I truly don't need what I have, and I hope to never have $11,500 outstanding at any point in time, but having a $30,000 TL would be cool in itself. I feel like I'm getting away with something at my current limit....like at any moment someone from Amex is going to call me and say, "oh, we've made a terrible mistake. $11,500 is much too large a limit for you."

Edited to add: I was pleasantly surprised when I found out this initial limit; I would be shocked if I actually got 3X what it is now. It would be more realistic if they started me out at $4,000 because my history doesn't reach back too far, then gave me a 3X on good behavior. I realize practical concerns may limit how far up it goes from here.


The best part is that you only have to wait two months after you opened your account to give it a try and its a SP EX pull too. Amex tends to be very generous as they've been in my case. I'm gonna try getting my Delta limit increased to at least 6K in February because they also tend to factor in how much credit you have from them on other cards and plus I checked my spending ability recently for the card and found that I'm eligible to charge up to 6.2K. Then when my account is old enough, I'm moving the limits over to my ED and BCE cards and closing it out. Higher limits beget higher limits a lot of the time.

Update: Tested the spending ability on my Gold Delta card again and it seems like how much I'm approved to charge has gone up to 7K though I'm gonna ask them just to be sure it's not greater. I saved a screen shot of it so I can post it up later. Not even sure if that's accurate or just a glitch with that button but I find it interesting that ability exists.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

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Vattené
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Postby Vattené » Fri Dec 12, 2014 3:16 pm

Yeah like many things in finance, the better off you are, the better you're treated.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

Mitch
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Postby Mitch » Fri Dec 12, 2014 8:46 pm

popamode72 wrote:Would you go for the 3x then? I heard after 25k, Amex will ask you for documentation. The possibility of having a tl over 30k sounds really beneficial though if your income can support it.


I do know that at a certain "threshold" they ask you to fill out a "e-document" which, apparently requests copies of your tax return from the IRS. They won't let you scan in your own copies, or do anything, of the sort. They want to physically pull your records from the IRS themselves, and scour over every last little detail they can.
----------------------------------------------------------------------------------------------------
Discover It $500 10/14. Capital One QS Visa $300 02/15, formerly Journey Visa Plat. 11/14.

Cre
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Postby Cre » Thu Dec 25, 2014 1:10 pm

Thanks to everyone for their comments on PIF, where it is optimal to let the statement cut with some (but not necessarily all) of the balance owing, so that some balance is reported that generally doesn't exceed 10% of the credit available, and then paying off that sub 10% balance in full between the statement cut date and the bill due date, to avert interest charges, if applicable.

I deployed this strategy on my last statement. I exceeded the posted credit limit during the statement period, then paid down the balance by 90% prior to the statement cutting, and allowed 10% of the charges incurred to post. I then paid off the remaining 10% during the grace period, hence "paying in full", while still allowing some, but not all, the credit utilization to be reported.

Were it not for some of the members on this forum, many of whom have posted in this thread, I would not have known to do this. I would have either PIF'd before the statement cut, or PIF'd the entire amount utilized, prior to the due date, but after the statement cut... which might have negatively impacted my score from too high percentage of utilization.

Any one of these three scenarios is still a PIF resolution, but the split payment strategy of prepaying some, but NOT all, of the balance before the statement cuts appears to be the recommended method of optimizing one's credit score.
Current Cards:
AmEx Platinum Charge: NPSL, $450 AF
AmEx Reserve Credit: $30K limit, $450 AF
Chase Slate Visa Credit: $32K limit, No AF
Future Strategy:
Near Term: Need a good MasterCard for places that won't accept AmEx or Visa
Long Term: Will downsize out of one or both current AmEx cards to reduce AFs

popamode72
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Postby popamode72 » Thu Dec 25, 2014 2:05 pm

Here's something cool I tried out the other day. Saw it mentioned on Credit Boards a couple of times and wanted to see if it could work for me.

I PIF on my Chase SW card, and the day after, they reported it to Experian even before the statement is supposed to cut. Still waiting for EQ and TU to update but I'll post the results of that here soon when I see that happen. My utilization total went down about 2% as a result as well.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

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PlyrStar93
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Postby PlyrStar93 » Thu Dec 25, 2014 3:03 pm

popamode72 wrote:Here's something cool I tried out the other day. Saw it mentioned on Credit Boards a couple of times and wanted to see if it could work for me.

I PIF on my Chase SW card, and the day after, they reported it to Experian even before the statement is supposed to cut. Still waiting for EQ and TU to update but I'll post the results of that here soon when I see that happen. My utilization total went down about 2% as a result as well.

Chase might be doing this on all of its cards. Whenever you make a payment, Chase will report it to bureaus. That means you can "manipulate" the balance of a Chase card shown on credit reports by making payments and it will be reflected immediately.

I have found it works for my Freedom card. Report is TransUnion, Just pulled latest report for free (Discover adverse action) today. It shows updated on 12/12/2014, which is the latest day I made payment. Paid off entire balance on that day, and now balance shows as 0 on CR. Statement cuts on 6th each month.

I can also see that my high balance shown is higher than any month's historical balance in the form.
Citi Forward Visa $5000 10/2012 | American Express Blue Cash Everyday $8000 2/2014 | Discover it $7000 5/2014
Chase Freedom Visa Signature $7000 6/2014 | Citi ThankYou Premier Visa Signature $5000 1/2015
All EMV.



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