I pay my Visa & Amex off in full each month. The top two negative resons on all three CRA reports are 1- Too high % of available credit used 2- Outstanding balances are higher than normal Hello...I pay in full I dont have a balance! But every month Amex and Visa are showing balances due. This is correct at the satement date but is not in a day or two, what can I do to get around this? Use cash until I get a mortgage (pain in the rear)? Send them both a few thousand and run a credit balance ?Get a zero balance letter right before I get my mortgage and have it rerated prior to pulling reports?These seem like stupid thing to do to get a few more points but who said credit scoring made sense Anyone else dealing with this is a better fashion? JohnM Eq 761 -up from 726 just by disputing balances due TU 710 Ex 691
Cap One does the same thing, You have to figure out when they post to the bureaus. Basically it looks like right after the 1st of the month for me, so I have to pay a few days before that it seems.
One thing you could do is since you pay them off is to pay them off before the cycle closes, this way they should report the zero balances. I do not recommend disputing the balances with anyone other than Equifax. Experian and TU will delete the whole postive tradeline and it may never return, been there done that
Good ideas, thanks all.... Amex will not allow a "pre payment" on "pay by phone" or online payments. I called and tried to do that last month, I was told "no can do", if I want to pay them, when they shown no balance due, I have to send a check via snail mail. Citi Visa limits me to two phone or online payments per month. Max allowed is current balance due. I did that last month a few days prior to my statement close date and still got $2,800 reported. Thanks, JohnM
JohnM Each credit card company has their computer talk to each CRA once a month. Its supposed to be once a month. So if you use you cards every month and then pay them off every month, you will always have a balance showing on your credit report. Here are several ideas get around this. First, forget about this until about 8 weeks before you want your score to be high for a credit application. Then go to using cash. Two, keep a running balance of what you owe and verify it with the credit card companies 800 number. Then send in a payment for the full balance before you get the bill. Three, get more cards so you don't use all of them every month. Four, never have a balance above 15% of the cards credit line. Good luck.
I am curerntly in the same situation since I am applying for a mortgage soon.. I am basically using only one card right now (Citi) .. I am keeping always a credit balance on it even if I have to send payments 4 or 5 times per months.. I am sending the payments from my BoA checking account using the online bill payment.. So my Citi is reporting a zero balance to the CRA's.. Additionally, I am keeping a balance of about $100 on another card (paid off monthly) since it seems that having a zero balance on all cards might drop the score a few points than having a minimal balance.. It's a pain to organize.. I hate paying cash or using my debit card.. But it's something that need to be done for 2-3 months, if possible, before applying for the mortgage.. Alex -- EQ 724, EXP 705, TU 750
Another thing.. Different cards report at different points in the billing cycle.. For example my 2 citi cards report the balance at the first day of the month regardless of the balance at the end of the biling cycle.. Most my other cards including Amex report the statement closing balance.
Alex_I, I tried the score simulators and found the same thing a very small balance on CC's seemed to be better than a zero balance. The other thing I get as a negative score reason is not enough retail credit, as if a Saks card is gonna help me pay my bills. Talk about your voodoo economics..I think I'll go to alt.witchcraft.credit.scores and ask them what to do! JohnM
Pay on-line all but $100.00 BEFORE the billing date... OR send a check in the mail for $1,000.00 or more and just use the credit balance...
