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Member
annalog
Posts: 46
Registered: ‎05-04-2011

Real Time Balance Reporting is Hurting Consumers

[ Edited ]

BofA (TSYS) is practicing "real time balance reporting" with the 3 bureaus.

So as your balance increases between cycle dates, your credit score drops along with it.

However, if you pay down your balance between cycle dates, they are not reporting the balance decrease until your statement closes.

 

Example:

You have a credit card with a $25,000 limit.  Your cycle date is the 1st of the month.

 

March 1st you bill out with a zero balance.

March 2nd you charge $20000.

March 3rd your real time balance is reported and your credit score tanks 20-30 points.

March 4th you make a payment for $20000.

 

March 4th to March 31st, your real time balance reported remains $20000 and your credit score is sitting in the toilet even though your balance from statement to statement is Zero!

 

Your thoughts?   Does anybody think this in unfair to consumers??

 

Here's why I think it is:

What if you just happened to apply for a mortgage on March 15th and your now lowered credit score puts you into a higher mortgage interest rate band?

(even though you have already paid the balance off and have no debt)

In this scenario, any credit approval process between March 4th and March 31st would be based on the "artificially" lower credit score, even though your March 1st statement and your April 1st statement show a zero balance.

 

EX=800, EQ=814, TU=946
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Valued Contributor
DaveSignal
Posts: 1,983
Registered: ‎07-29-2011

Re: Real Time Balance Reporting is Hurting Consumers

Couldn't you just make a small charge right after your payment to get it to report again?

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Established Contributor
jamie123
Posts: 718
Registered: ‎03-22-2012

Re: Real Time Balance Reporting is Hurting Consumers

Where did you hear this?

 

That just blows our credit practices out of the water!



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Valued Contributor
jamesdwi
Posts: 1,407
Registered: ‎09-16-2011

Re: Real Time Balance Reporting is Hurting Consumers

I think it would only hurt people rebuilding and thin files. BoA isn't known for overly large limits any more unless they have very old and established credit, if you have old established credit a high limit reporting on your cards have very little impact anyway.  New people will have low limits will be  impacted by High Balance reporting and wouldn't have a way to use another card. To me its just another red flag that puts BoA on my list of creditors not to deal with they were allready there anyway. 

 

Unless you are going to be buying a house or a car soon your UTL isn't a real issue unless you max out muliple cards every month. If that is the case time to AP for AMEX charge card then no matter what your UTL or high balance on the card is has no impact on modern scoring systems. 

 

 

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Member
annalog
Posts: 46
Registered: ‎05-04-2011

Re: Real Time Balance Reporting is Hurting Consumers

It's happened to me and I have screenshots to prove it. 

EX=800, EQ=814, TU=946
Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010

Re: Real Time Balance Reporting is Hurting Consumers


annalog wrote:

BofA (TSYS) is practicing "real time balance reporting" with the 3 bureaus.

So as your balance increases between cycle dates, your credit score drops along with it.

However, if you pay down your balance between cycle dates, they are not reporting the balance decrease until your statement closes.

 

Example:

You have a credit card with a $25,000 limit.  Your cycle date is the 1st of the month.

 

March 1st you bill out with a zero balance.

March 2nd you charge $20000.

March 3rd your real time balance is reported and your credit score tanks 20-30 points.

March 4th you make a payment for $20000.

 

March 4th to March 31st, your real time balance reported remains $20000 and your credit score is sitting in the toilet even though your balance from statement to statement is Zero!

 

Your thoughts?   Does anybody think this in unfair to consumers??

 


  It just puts you on an even keel with those who pay their bills by the due date.   I think it is unfair that you get an artificial credit boost by paying 3 weeks early.  I don't think you credit risk is any better, it just looks better.

 

  So it is just taking away a loophole that many on this board are obsessively addicted to.  

 

  However, I do make use of the loophole occasionally when I plan to apply..   

   

 

Member
annalog
Posts: 46
Registered: ‎05-04-2011

Re: Real Time Balance Reporting is Hurting Consumers

@Wolf3 ---- I think you have it backwards.  Please re-read.

EX=800, EQ=814, TU=946
Member
annalog
Posts: 46
Registered: ‎05-04-2011

Re: Real Time Balance Reporting is Hurting Consumers

@Jamie....why do you say that?   lol

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Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

Re: Real Time Balance Reporting is Hurting Consumers

That's not cool.  Just another reason I will keep BofA out of my wallet!!




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EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
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Established Contributor
Jlu
Posts: 569
Registered: ‎06-12-2012

Re: Real Time Balance Reporting is Hurting Consumers

[ Edited ]

This is why I don't think I'll take BoA's offer to graduate my secure card when the time comes.

 

 I really do hate them and hate having them in my wallet. However they are a means to an end right now.

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