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New Contributor
Posts: 50
Registered: ‎04-08-2010
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Account Error created CC balance! How to Save FICO Score

Advice:

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.

CC statement shows $10 balance of 7.5k TL.

Also, I have a LoC that shows up as a credit card. I have the money to pay it off. I was going to let it report 1%, but what should I do?

 

1) pay off LoC, have CC report $10 of 17.5k Total available credit (util 0%)?

OR

2) pay down LoC to $165 so total util is 1% & both my TLs report?

 

Thanks!

Senior Contributor
Posts: 3,197
Registered: ‎01-24-2010
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Re: Account Error created CC balance! How to Save FICO Score

What are you saving your FICO score for?

Moderator Emerita
Posts: 3,091
Registered: ‎08-09-2008
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Re: Account Error created CC balance! How to Save FICO Score


warthog1984 wrote:

Advice:

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.

CC statement shows $10 balance of 7.5k TL.

Also, I have a LoC that shows up as a credit card. I have the money to pay it off. I was going to let it report 1%, but what should I do?

 

1) pay off LoC, have CC report $10 of 17.5k Total available credit (util 0%)?

OR

2) pay down LoC to $165 so total util is 1% & both my TLs report?

 

Thanks!


Hi warthog1984! Smiley Happy

 

I'm not sure I understand what you're asking--

 

You previously carried a balance, paid it off, and you're now left with the finance charges from the average daily balance, which is $10, correct? Your utilization on that card is less than 1%. You also have a revolving LoC with a balance, and you have the money to PIF...?

 

Pay both in full. Your credit card will continue to report the $10 balance until the next statement drops, but you won't be incurring any additional finance charges. Your LoC can report a zero balance, sparing your from any additional money out of your pocket from interest charges. Life will be good. Smiley Happy

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New Contributor
Posts: 50
Registered: ‎04-08-2010
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Re: Account Error created CC balance! How to Save FICO Score

[ Edited ]

@LilMirth-

 

I am trying to boost my credit score before applying for student loans. I had a balance from using some of my credit line to carry cold cash, but paid it off until the finance charges show up.

 

I'm just wondering which is better-

 

Have 1 TL report @ 0% util or both TLs reporting but carry a 1% util to bump the score.

 

Both the CC and LoC will be PIF after the statement date & the finance charges are paying for themselves either way Smiley Happy.

Senior Contributor
Posts: 3,197
Registered: ‎01-24-2010
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Re: Account Error created CC balance! How to Save FICO Score

It is not going to make much difference either way.   IMO, paying both off would be better for student loan.

Regular Contributor
Posts: 246
Registered: ‎06-02-2008
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Re: Account Error created CC balance! How to Save FICO Score

 


warthog1984 wrote:

Advice:

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.

CC statement shows $10 balance of 7.5k TL.

Also, I have a LoC that shows up as a credit card. I have the money to pay it off. I was going to let it report 1%, but what should I do?

 

1) pay off LoC, have CC report $10 of 17.5k Total available credit (util 0%)?

OR

2) pay down LoC to $165 so total util is 1% & both my TLs report?

 

Thanks!


 

To echo everyone else in this thread:  pay off the LOC completely.  Don't worry about the $10 balance on the CC.   It's more important to pay off your debts with the least amount of interest, than to play FICO numbers games.  The $10 balance will take care of itself next month because you're going to pay it off ASAP.  It's not something to have a heart attack over Smiley Happy  and if it is...... you have deeper credit issues than what you're reporting here, and need to get those taken care of.

 

People are here to help you with that.  What other deeper credit issues do you have?  If you don't, relax.  Recognize sometimes FICO numbers games can become personal muscle flexing contests instead of actual credit repair.  You'll be fine.

New Contributor
Posts: 50
Registered: ‎04-08-2010
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Re: Account Error created CC balance! How to Save FICO Score

@Nonaii-

 

I wouldn't worry about it except I need to apply for student loans right after the LoC reports, so I Am worrying about my Fico for the next 2 weeks. After that, I just do my regular stuff. Just Sucks b/c I lost my job due to the economy.

Senior Contributor
Posts: 3,197
Registered: ‎01-24-2010
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Re: Account Error created CC balance! How to Save FICO Score

Good luck!

Frequent Contributor
Posts: 270
Registered: ‎09-08-2007
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Re: Account Error created CC balance! How to Save FICO Score

Two comments. First, student loans do not do credit checks unless you are going through a private lender for a loan. You don't even have to have a job to get federal student loans.

 

Second, I am laughing because the same thing just happened to me with my CU. I paid off almost $900 balance and then waited two weeks to report. I wanted to use the card again, but wanted a zero balance to see how it would affect my score. Then, yesterday I found out there was a $3 finance charge, lol. With my Best Buy I paid if off and they tacked on $6. Oh, well, at least my credit report is improving little by little. Unfortunately, too little and too long, sigh...

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
Valued Contributor
Posts: 2,708
Registered: ‎10-16-2008
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Re: Account Error created CC balance! How to Save FICO Score

 


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

 

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