@mxp114 wrote:
@Wolf3 wrote:
I don't see how that is more useful statistic for scoring credit risk.
If you are tired of paying before statement cut, don't do it. Many people don't.
Maybe not but what about a scenario like this: statement cuts at $10k, I pay it by due date but the report reflects $10k as of May 2012. I now charge $15k in June, let that statement report so the report shows $15k as of June 2012. Doesn't it seem like I just carried over the balance and added an extra $5k in debt? TU and EQ don't show the detailed histories and not all lenders even report that to EX. Do creditors get a deeper profile with those stats? That's what I don't know.
And yes it's tiring to keep track of but otherwise score drops. I let a $39 balance and score dropped 5 points. I can't imagine what a $15k balance would do.
Unfortunately we do not know that to be true, at all. The credit reports we see are highly sanitized versions of the raw data, and not everything that is reported is put on the reports that we see (and presumably the lenders too, but since they're the customer and we aren't, all bets are off).
Personally I suspect if it's being reported to one bureau, it's likely being reported to all three. I didn't go trawling through the code in the J2EE application I once supported that queried and updated CRA's, but it's a fair bet that it's markedly similar between the bureaus.
@Anonymous wrote:I still don't understand how keeping my credit cards paid off, never carrying a balance and, having 3 credit reports that show excellent payment history puts me in over my head???
Now, if I had rung up all my cards to the max and was only paying the minimum on them --- then, I could understand the lenders/underwriters viewing me as being someone who was "in over their head" -- but, using credit responsibly from month to month, totally living way below my means -- I don't see how I would be judged negatively as being someone who was "in over their head."
Maybe I am just too blonde!!
Because it's compared to your income and potentially assets. Sure, you may be living within your means, and many kudos for doing so as not that many people do; however, if your monthly spend was near equivalent to your post-tax income, as a lender I'd have some pretty serious reservations about extending you more credit. If you're close to your monthly income in payments, but your balances are still increasing month to month, then that's a huge red flag that someone's financial life isn't in order. That's determinable from the information Experian chooses to share with us on it's highly sanitized report. it wouldn't surprise me in the slightest if these were explicitly some of the typical factors which trigger FR's for Amex as one lender's AA: the underwriting algorithms are more than sophisticated enough to pick out those issues without a human even needing to look at it other than for validation and/or review purposes.
Anyway, being blonde is never a bad thing 
@compassion101 wrote:I don't understand why so many people here encourage paying before statement.
I do understand it if you are seeking new credit, but how often do you need to do that? For example, I plan to be seeking credit so I am doing it this month, but after I (hopefully) attain the new credit I am looking for, it's back to the float and the promotional 0% APRs for me.
Fear reflex or something. Personally I agree with you, but we're in the minority I suspect. I couldn't care less if balances report when I'm not applying for something; however, since I have a primary card and my other tradelines are just once or twice a month type things, and I find it easiest to just pay my credit cards and car loan at the same time I pay my rent, I wind up managing my utilization pretty effectively regardless; however, when unemployed as I was these last three months, I just let my balances float... went up to something like 61% utilization for June. Will be interesting to see what damage it did but it's fixed for July so whatever.
You sure eq and tu don't have monthly detailed line reporting? Look at the raw report. You should see it. Details are different and not every lender reports every field.
LIMITS IN CARD DESCRIPTIONS
Despite the rationalizing to the contrary in the responses, I agree with the OP. I have charged thousands during a statement cycle and reported zero balances and that's all the report shows: A BIG ZERO. Then, I have seen actual decreases in my score because my utlization was effectively 0% as far as the reports can see. Meanwhile, the hidden truth is quite the opposite. Heck, I have had months on multiple cards where I charged more than my limit over the course of the cycle and still made to look like I have inactive cards because the balance is paid before the statement date.
Clumsy system.
Start (Sept 2011): low-mid 600s. NOW: TU FICO: 801, EQ FICO 808, EX FICO 798 (PSECU). Goal: Achieved! Now Maintain!