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Frequent Contributor
brother7
Posts: 376
Registered: ‎02-06-2009

Re: Newbie Question......


jamie123 wrote:

What is the reporting balance you ask? The CC companies report your account balance once each month to the CRAs. The reporting date varies from your payment due date, up to your payment due date + 3 to 4 days, so you need to control the balance on your card for this approx. 1 week period each month.


Jamie123, are you sure it is payment date? I was under the impression it was STATEMENT DATE. Please confirm.


11/02/2012 Peak - EQ 790 (ScoreWatch EQ FICO)
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Established Contributor
jamie123
Posts: 738
Registered: ‎03-22-2012

Re: Newbie Question......

In my experience they report any where from the payment due date, until 3 to 4 days after the payment due date. The statement date usually falls in that date range also.

 

If you pay your balance down to zero by the payment due date and then say, charge something 2 days after the payment due date, but before the statement date, they will sometimes report that NEW charge even though it is after the payment due date and your balance had been paid to zero.



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Valued Contributor
nicholasyud
Posts: 1,734
Registered: ‎08-13-2012

Re: Newbie Question......

[ Edited ]

brother7 wrote:

jamie123 wrote:

What is the reporting balance you ask? The CC companies report your account balance once each month to the CRAs. The reporting date varies from your payment due date, up to your payment due date + 3 to 4 days, so you need to control the balance on your card for this approx. 1 week period each month.


Jamie123, are you sure it is payment date? I was under the impression it was STATEMENT DATE. Please confirm.


I have to correct Jamie there............The CC companies report your account balance once each month to the CRAs on the statement cut off time.....On OP case, its on the 12 of every months but they usually report to credit bureaus after 2 to 3 days. I have monitor my account for several months and leave a balance report higher a lil bit than the previous months like $2 dollars and i get the Alert Score Watch after 3 4 ddays payment cut off time.

 

Example:

 

My Crappy one cut off time on 13 of each month and i usually get Alert Score Watch on 16 or 17 if i let the balance increase a few dollars.

 

Credit One Cut off time 10 of each month........ALert on 13 to 15.......

Hope its clear all the newbie..............Feel free to contact me if you still confuse..........

 


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
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Established Contributor
jamie123
Posts: 738
Registered: ‎03-22-2012

Re: Newbie Question......


brother7 wrote:

jamie123 wrote:

What is the reporting balance you ask? The CC companies report your account balance once each month to the CRAs. The reporting date varies from your payment due date, up to your payment due date + 3 to 4 days, so you need to control the balance on your card for this approx. 1 week period each month.


Jamie123, are you sure it is payment date? I was under the impression it was STATEMENT DATE. Please confirm.


I learned this the hard way with BoA. I put a reccuring charge on my BoA card. It shows up in my "pending" charges 1 or 2 days before my payment due date each month. BoA won't allow me to pay it until it clears. BoA sometimes doesn't clear this payment until 1 or 2 days AFTER my payment due date. If I fail to pay it on the day that it clears, it gets reported to the CRAs even though my balance was zero on the payment due date.



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Valued Contributor
nicholasyud
Posts: 1,734
Registered: ‎08-13-2012

Re: Newbie Question......


jamie123 wrote:



I learned this the hard way with BoA. I put a reccuring charge on my BoA card. It shows up in my "pending" charges 1 or 2 days before my payment due date each month. BoA won't allow me to pay it until it clears. BoA sometimes doesn't clear this payment until 1 or 2 days AFTER my payment due date. If I fail to pay it on the day that it clears, it gets reported to the CRAs even though my balance was zero on the payment due date.


I guess they playing trickky on you buddie...........You should start paid it 5 bussiness days in advance............

I also had a bad experience with BOA......I were obtain a secured CC with them...........approved for 500 deposit.....Took my money right away on my Checking account, after a week they did 2nd hard pull on my credit report......They cancel my cards itself and take 1 weeks to refund my money.........Such a pain..............I would never do business with them again...............

 


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
Goal Score: 800


Walmart: 10k |Usaa: 8k|BCE: 9k| Amex: NSPL|Dis: 3.4k|Cap: 3.5k|CAP: 2k|CSP: 5k| Pen:4.5k

Contributor
toiletbowl69er
Posts: 106
Registered: ‎11-08-2012

Re: Newbie Question......

okay this is all going over my head. so to keep it simple, pay off your balances, leaving just $10-$30 balance 3-5 days before the payment due date and then pay it down to 0 3-5 days after the payment due date?

 

purpose being to show a <10% utilization rate on fico

 

will the $10-$30 acquire interest from not paying the whole balance prior to the due date?

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Valued Contributor
nicholasyud
Posts: 1,734
Registered: ‎08-13-2012

Re: Newbie Question......


toiletbowl69er wrote:

okay this is all going over my head. so to keep it simple, pay off your balances, leaving just $10-$30 balance 3-5 days before the payment due date and then pay it down to 0 3-5 days after the payment due date?

 

purpose being to show a <10% utilization rate on fico

 

will the $10-$30 acquire interest from not paying the whole balance prior to the due date?

Depend on each CC company but u usually get 25 days grace period which if you paid before due date....There's no interest charge.


 

+1


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
Goal Score: 800


Walmart: 10k |Usaa: 8k|BCE: 9k| Amex: NSPL|Dis: 3.4k|Cap: 3.5k|CAP: 2k|CSP: 5k| Pen:4.5k

Contributor
toiletbowl69er
Posts: 106
Registered: ‎11-08-2012

Re: Newbie Question......


nicholasyud wrote:

toiletbowl69er wrote:

okay this is all going over my head. so to keep it simple, pay off your balances, leaving just $10-$30 balance 3-5 days before the payment due date and then pay it down to 0 3-5 days after the payment due date?

 

purpose being to show a <10% utilization rate on fico

 

will the $10-$30 acquire interest from not paying the whole balance prior to the due date?

Depend on each CC company but u usually get 25 days grace period which if you paid before due date....There's no interest charge.


 

+1


wow i did not know that. learn something new everyday. thank you!

 

Capital One Platinum MasterCard | $2,000 | 05/08
Macy's Store Card | $1,500 | 09/09
Chase Freedom Visa | $3,100 | 11/11
Discover It | $750 | 03/12
American Express BCE | $1,000 | 11/12
Chase SP Visa Signature | $8,000 | 12/12
Established Contributor
jamie123
Posts: 738
Registered: ‎03-22-2012

Re: Newbie Question......

Yes, first payment a few days BEFORE payment due date. Second payment could really be anytime before the next payment due date but I usually make it a few days after the new statement cuts to show good credit behavior.

 

Using credit cards is a Catch-22 situation. You need to use them a lot to show lenders that you can manage credit and get them to give you good CLIs, but if you let them report high balances and your utilization percentage is reported at more than 9% your scores will take a serious hit. This is a work around until your credit lines climb high enough to not have to worry about the 9% when you spend normally each month.

 

When you have a total of $2000 CL nine percent is $180. When you have a total of $20K CL nine percent is $1800 which makes it much easier to manage your credit.

 

That's one reason people on these forums are obsessed with getting CLIs.



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Valued Contributor
nicholasyud
Posts: 1,734
Registered: ‎08-13-2012

Re: Newbie Question......

[ Edited ]

Yes, first payment a few days BEFORE payment due date. Second payment could really be anytime before the next payment due date but I usually make it a few days after the new statement cuts to show good credit behavior. ( Statement Cut Off Time )

 

Using credit cards is a Catch-22 situation. You need to use them a lot to show lenders that you can manage credit and get them to give you good CLIs, but if you let them report high balances and your utilization percentage is reported at more than 9% your scores will take a serious hit. This is a work around until your credit lines climb high enough to not have to worry about the 9% when you spend normally each month.

 

When you have a total of $2000 CL nine percent is $180. When you have a total of $20K CL nine percent is $1800 which makes it much easier to manage your credit.

 

That's one reason people on these forums are obsessed with getting CLIs.

 

You confuse those newbie Jamie.....Make it simple


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
Goal Score: 800


Walmart: 10k |Usaa: 8k|BCE: 9k| Amex: NSPL|Dis: 3.4k|Cap: 3.5k|CAP: 2k|CSP: 5k| Pen:4.5k


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