Just pulled my credit report for the first time ever (experian). The question it raises for me is the following: Do credit card companies and other potential lenders look negatively on carrying a monthly balance vs paying the entire balance off at the end of each month?
As long as your balance to ratio limit is acceptable and you pay on time, they love it when you carry a balance from time to time. They make more money this way. They are also more apt to offer you limit increases and low balance transfer rates.
Some credit bureaus records your monthly balances. I have a copy in my hand and all my capitalone balances for the past 12 months, by each month, are disclosed on my report. like 02/00 - $549, 03/00 - $502 , 04/00 - $249 ... etc. Not sure if they use that, the data can be collected, and is collected..
THATS FINE...BUT... you may have paid $47 (03/00)...BUT you also could have paid $549 and charged $502... SEE???
For some reason, even though I have been paying balances in full on an Amex, it shows up on the Equifax with the full balance, not the zero. Recently, after a balance transfer, when I wanted to open another account, they questioned that balance and I had to convince them it was already at zero. At the same time the card I had transfered the balance to showed the new (large) balance already so it looked like I had double large balances. If they had simply used numbers and a computer it would have been a no go.
ON 07/1999 DISCOVERCARD SAYS $4,469 ON 08/1999 " " SAYS $1,997 DID I PAY $2,472??? NO, I PAID IN FULL AND CHARGED $1,997 MORE!!! JUST F.Y.I.
Re: TANA Credit bureaus report the statement balance, which reveals how much credit you use, but not how quickly you pay it off.
Re: TANA George - > ON 07/1999 DISCOVERCARD SAYS $4,469 > ON 08/1999 " " SAYS $1,997 > DID I PAY $2,472??? > NO, I PAID IN FULL AND CHARGED $1,997 MORE!!! > JUST F.Y.I. It makes absolutely no difference whether you paid 2,472 or paid it off and charged the 1,997 back on there. The history maintained is an average balance of what's owed each month. Lenders don't care if you charge a million a month and then pay a million a month, because they don't make any money off those who pay off in full and/or pay off in full and charge it back on and pay it back off the next billing cycle. What they DO like to know is the average balance carried, which is what's used to determine your interest charges that they could collect!
