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Account Error created CC balance! How to Save FICO Score

New Contributor

Re: Account Error created CC balance! How to Save FICO Score

 


Uborrow-Upay wrote:

 


warthog1984 wrote:

I have a CC I paid down this month and was going to report $0 balance. Due to CU accounting, interest was tacked on at end of month instead of daily.


 

Hi, warthog1984!

 

Just to clarify something here.

 

Interest charges are always tacked on at the close of the statement period if you're carrying a balance that's not subject to a grace period.  The interest is accrued on a daily basis, but it doesn't post to your account until the statement cuts.

 

The point I'm trying to make is that this is not an error, or something that CUs alone do.  It's common practice, and you can expect this with any card.

 

It usually takes two billing cycles to get an account to report a zero balance once you've carried a balance you're paying interest on.  Unless, of course, you can figure out the interest charges in advance of payment, and then "push" an overpayment through your bank to the credit card company.

 

Hope this clarifies it a bit.  Smiley Happy

 


 

@UBorrow-

 

The frustrating thing is that I figured I was in the clear since the LoC also with this CU has daily interest tacked on daily, where the CC has daily interest tacked on monthly. Yeah, in the future I'll have to manually estimate the Finance Charge & transfer extra from my savings ahead of time.

Message 11 of 14
Frequent Contributor

Re: Account Error created CC balance! How to Save FICO Score

Out of curiousity, has anyone ever overpaid and had a negative balance? I wonder how Fico scoring handles such (negative numbers). Does it give the same score as a $0 balance or does it interprete as a balance owed?

4/25/11 FICO: EQ 761....EX 770.....TU 744
3/6/2011 FICO: EQ 710... EX 718... TU 710
09/09 FICO: EQ: 525
Message 12 of 14
Moderator Emeritus

Re: Account Error created CC balance! How to Save FICO Score

 


StartinOver wrote:

Out of curiousity, has anyone ever overpaid and had a negative balance? I wonder how Fico scoring handles such (negative numbers). Does it give the same score as a $0 balance or does it interprete as a balance owed?


 

I've done it a few times with BoA and it always shows as a zero balance.

 

 

 

Message 13 of 14
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Moderator Emerita

Re: Account Error created CC balance! How to Save FICO Score


marinevietvet wrote:

 


StartinOver wrote:

Out of curiousity, has anyone ever overpaid and had a negative balance? I wonder how Fico scoring handles such (negative numbers). Does it give the same score as a $0 balance or does it interprete as a balance owed?


 

I've done it a few times with BoA and it always shows as a zero balance.

 

 

 


 

+1. I've inadvertantly overpaid most of my cards at one time or another. It always reports a zero balance.

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Message 14 of 14