When do the banks report our balance owed on credit cards? What I mean is, let's say Cap 1 sends their updates to the CRA's on the 10th of every month. Each month they get my payment IN FULL on the 15th. If they update the CRA on the 10th, it will show that I have a balance, even if I pay it off 5 days later. This is especially harmful if I charge on my card every month, even though I pay it off - it will always appear as though I carry a balance. Am I mistaken here? Hopefully that is not how it works. I'm hoping that if my payment is due on the 15th they update the CRA on the 16th when my balance is $0. Does anyone know?
I think most creditors either update at the end of the month or in the beginning of the month. I know they say it is best to get your reports pulled at the end of the month, why I really don't know, but that's what I have been told.
Even though I pay my DISCOVERCARD in full every month...it always looks like I carry a balance every month due to the reporting of the balance some day other than the day of the payment...
That is very frustrating. Unfortunately, I have to use my cards because I travel for work. (Don't want to get turned down for the Corp Amex.) Because of this, it looks like I carry balances near the limits, not that my limits are very high
I think what's reported to the CRAs is the "statement balance" -- the balance due on the monthly statement.
Most creditors report the balance due at the close of the statement period. If it is important that you not appear to be maxed out, the best solution is to pay the balance in full before the statement period closes. Now that most banks accept online payments, this is easy to do since you don't have to wait for the paper statement to come in the mail to make a payment.
Thanks guys! I usually pay early but I guess I'll just have to be more cautious to make sure I have a $0 balance on my statement closing date.
$0 balance on statement closing date for a couple months is fine, but to do it every month is bad too...it looks like you NEVER use the card! ALSO, YOU LOSE THE "FLOAT" TIME. JUST A THOUGHT...
Dave offered excellent advice. Early payments would minimize any statement balances being reported. If excessive available credit is not an issue, you could also open new accounts to reduce your utilization ratio. My Citibank ClickCiti card, which I rarely use, does wonders for my utilization ratio.
When you receive your CRAs, they will ususally report that balance on your account from the previous month. It's never failed with me. Your creditors send the info to the CRAs once a month and show statement balances. Also, I have to echo the "pay in full each month" statements from the previous posts. You might THINK this is a good thing, but it's not. Carry a balance for a few months then pay it off. Believe it or not, paying in full each month will HURT your score, not help. Creditors want to see a payment HISTORY. If it keeps showing up as ZERO balance, they don't know what you're doing. I got this information directly from a lender.
Re: When do the balances... Author: GEORGE (---.ftclns1.co.home.com) Date: 03-20-01 21:03 Even though I pay my DISCOVERCARD in full every month...it always looks like I carry a balance every month due to the reporting of the balance some day other than the day of the payment... Reply To Message==That's one of the problems with credit reports:They are always inaccurate beause they are always outdated!
Re: When do the balances... Author: Momof3 (---.proxy.aol.com) Date: 03-20-01 20:51 I think most creditors either update at the end of the month or in the beginning of the month. I know they say it is best to get your reports pulled at the end of the month, why I really don't know, but that's what I have been told. Reply To Message==========Credit reports are always outdated because the creditors records on the credit card account is always out dated
