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Established Contributor
jcstarkey8826
Posts: 708
Registered: ‎06-01-2012
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Re: Real Time Balance Reporting is Hurting Consumers


Wolf3 wrote:

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..   

   

 


Loopholes? Unfair? ... If anyone can do It, its not unfair, and its not a loophole. I thought, if anything, it was unfair to report that I rely on my credit cards and look like I carry maxed out limits, when in fact, I pay them in full every month. So instead, I pay them 2 days early. Whats unfair about that???

 

I dont think this BofA reporting is fair either, It would be fair if they reported both payments and purchases actively, but to report only active purchases doesnt seem right. Not a huge issue to me, but I do see it as unfair in some ways.

In my wallet: GCU Patinum Visa 1500 CL, Charter One Platinum Rewards 500 CL, Chase Freedom 800 CL, Wal Mart Discover Card 6300 CL, Kay Jewelers 3000 CL
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Wolf3
Posts: 3,197
Registered: ‎01-24-2010
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Re: Real Time Balance Reporting is Hurting Consumers


annalog wrote:

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


What part do you think I have backwards?

 

If you paid the bill by the due date of April 20th or so.   The balance reported at statement closing would be the same $20K, and hence the lower score to reflect a balance.  This just reports it earlier.          

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Wolf3
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Re: Real Time Balance Reporting is Hurting Consumers


jcstarkey8826 wrote:

 

 


Loopholes? Unfair? ... If anyone can do It, its not unfair, and its not a loophole. I thought, if anything, it was unfair to report that I rely on my credit cards and look like I carry maxed out limits, when in fact, I pay them in full every month. So instead, I pay them 2 days early. Whats unfair about that???

 

I dont think this BofA reporting is fair either, It would be fair if they reported both payments and purchases actively, but to report only active purchases doesnt seem right. Not a huge issue to me, but I do see it as unfair in some ways.


 

IMO, it is statistically invalid.    I think most people pay their bills when they are due and not a month early.   So to pay early vs paying by due date gives you a better FICO score.   But knowing and using this loophole does not make you a better credit risk, hence your score is artificially higher than it should be.  

 

On the other hand, I don't think it is fair that utilization of people who PIF every month is treated the same a utilization of people carrying balances and paying interest.  Generally the PIF people are a better credit risk.

 

IMO, The way utilization is handled by FICO is very poorly done.   I am not suprised that BOA is looking for other ways to report to help them better determine credit risk..   

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jcstarkey8826
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Re: Real Time Balance Reporting is Hurting Consumers


Wolf3 wrote:

jcstarkey8826 wrote:

 

 


Loopholes? Unfair? ... If anyone can do It, its not unfair, and its not a loophole. I thought, if anything, it was unfair to report that I rely on my credit cards and look like I carry maxed out limits, when in fact, I pay them in full every month. So instead, I pay them 2 days early. Whats unfair about that???

 

I dont think this BofA reporting is fair either, It would be fair if they reported both payments and purchases actively, but to report only active purchases doesnt seem right. Not a huge issue to me, but I do see it as unfair in some ways.


 

IMO, it is statistically invalid.    I think most people pay their bills when they are due and not a month early.   So to pay early vs paying by due date gives you a better FICO score.   But knowing and using this loophole does not make you a better credit risk, hence your score is artificially higher than it should be.  

 

On the other hand, I don't think it is fair that utilization of people who PIF every month is treated the same a utilization of people carrying balances and paying interest.  Generally the PIF people are a better credit risk.

 

IMO, The way utilization is handled by FICO is very poorly done.   I am not suprised that BOA is looking for other ways to report to help them better determine credit risk..   


This we can agree on, but I still stand by the notion, if anyone can do it. Its not unfair. I dont pay mine a month early. I pay it 2 days before the statement cuts so that creditors know I dont rely on credit. Nothing wrong with that.

In my wallet: GCU Patinum Visa 1500 CL, Charter One Platinum Rewards 500 CL, Chase Freedom 800 CL, Wal Mart Discover Card 6300 CL, Kay Jewelers 3000 CL
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ComputerWizMaster
Posts: 74
Registered: ‎05-26-2011
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Re: Real Time Balance Reporting is Hurting Consumers


jcstarkey8826 wrote:

Wolf3 wrote:

jcstarkey8826 wrote:

 

 


Loopholes? Unfair? ... If anyone can do It, its not unfair, and its not a loophole. I thought, if anything, it was unfair to report that I rely on my credit cards and look like I carry maxed out limits, when in fact, I pay them in full every month. So instead, I pay them 2 days early. Whats unfair about that???

 

I dont think this BofA reporting is fair either, It would be fair if they reported both payments and purchases actively, but to report only active purchases doesnt seem right. Not a huge issue to me, but I do see it as unfair in some ways.


 

IMO, it is statistically invalid.    I think most people pay their bills when they are due and not a month early.   So to pay early vs paying by due date gives you a better FICO score.   But knowing and using this loophole does not make you a better credit risk, hence your score is artificially higher than it should be.  

 

On the other hand, I don't think it is fair that utilization of people who PIF every month is treated the same a utilization of people carrying balances and paying interest.  Generally the PIF people are a better credit risk.

 

IMO, The way utilization is handled by FICO is very poorly done.   I am not suprised that BOA is looking for other ways to report to help them better determine credit risk..   


This we can agree on, but I still stand by the notion, if anyone can do it. Its not unfair. I dont pay mine a month early. I pay it 2 days before the statement cuts so that creditors know I dont rely on credit. Nothing wrong with that.


You are paying it a month early, or very close to a month early, since you're paying it before your full grace period has passed. Since a typical grace period is 25 days you're paying 27 days early... Close enough to estimate it as a month...

 

Just because everyone can exploit a loophole doesn't make it any less of a loophole. It is a loophole because it circumvents the reason they include the balance on the credit report at all. When your statement cuts with a $0 balance it isn't accurate at all. You did carry a balance that month...

 

I'm sure that's why I've seen "high balance" being reported along with my balance on a lot of my reports. Banks are working out ways to circumvent the attempts to game their side of the equation (the fairness isn't being discussed here. I'm not saying anyone is being right or wrong).

 

Me, I PIF on the due date and not a moment earlier. I see no reason to. I follow the strategy of very large limits to make my utilization number something that doesn't matter to me at all.

 

Feb. 2012: TU: 677 EQ: 647 EX: 666
Aug. 2013: TU: 729 EQ: 726 EX: 697
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Koop10010
Posts: 731
Registered: ‎02-15-2012
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Re: Real Time Balance Reporting is Hurting Consumers


Wolf3 wrote:

jcstarkey8826 wrote:

 

 


Loopholes? Unfair? ... If anyone can do It, its not unfair, and its not a loophole. I thought, if anything, it was unfair to report that I rely on my credit cards and look like I carry maxed out limits, when in fact, I pay them in full every month. So instead, I pay them 2 days early. Whats unfair about that???

 

I dont think this BofA reporting is fair either, It would be fair if they reported both payments and purchases actively, but to report only active purchases doesnt seem right. Not a huge issue to me, but I do see it as unfair in some ways.


 

IMO, it is statistically invalid.    I think most people pay their bills when they are due and not a month early.   So to pay early vs paying by due date gives you a better FICO score.   But knowing and using this loophole does not make you a better credit risk, hence your score is artificially higher than it should be.  

 

On the other hand, I don't think it is fair that utilization of people who PIF every month is treated the same a utilization of people carrying balances and paying interest.  Generally the PIF people are a better credit risk.

 

IMO, The way utilization is handled by FICO is very poorly done.   I am not suprised that BOA is looking for other ways to report to help them better determine credit risk..   


Huge +1.  FICO's handling of utilization is pretty stupid.  If you have a $2000 limit card, run up $1900 every month and pay it in full, that is a huge difference from having a $1900 balance and making minimum payments along with a new charge or two.  People who pay in full shouldn't have to worry about paying super early or worry about how many accounts they let report a balance or worry about a card reporting more than 10% utilization and seeing a score drop.

FICOs (2/24/12): EX 752, EQ 740
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jamie123
Posts: 925
Registered: ‎03-22-2012
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Re: Real Time Balance Reporting is Hurting Consumers

Jamie: Where did you hear this?

 

Jamie: That just blows our credit practices out of the water!

 


annalog wrote:

@Jamie....why do you say that?   lol


We have been led to believe on this forum that the way to preen your credit score is to leave one card report a balance less than 9% and all other cards report zero. That advice is all over myFICO's forum. It is considered one of the foundations of building your score. If what you are saying is true, that information is now wrong.

Now, what we would have to do is basically the same thing except you would have to stop using your cards for a month before applying for new credit. You would have to set-up your cards, wait for all of them to report, then apply for your new credit. You would have to "freeze" your reporting (by not using your cards) for a few days or weeks until your apping was complete.



Starting Score: EQ 658 6/18/12
Current Score: EQ 690 11/17/14 - EX 687 7/21/14 - TU 682 7/21/14
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jamie123
Posts: 925
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Re: Real Time Balance Reporting is Hurting Consumers

It's just too bad that the CC companies would lose all that revenue each year. All of us freezing our usage for a few months each year! Think of the billions that would cost them!

 

Again....Let me ask the question....

 

Where did you hear about this? Is this a rumor? Do you have proof?

 

How about letting us see those screenshots?



Starting Score: EQ 658 6/18/12
Current Score: EQ 690 11/17/14 - EX 687 7/21/14 - TU 682 7/21/14
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Revelate
Posts: 9,731
Registered: ‎12-30-2011
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Re: Real Time Balance Reporting is Hurting Consumers


Jlu wrote:

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.


Why would you not take their offer to unsecure?  I'm assuming the Freedom is your everyday card in your lineup, but a BOFA 1-2-3 card is a close second.

 

Annie,

 

Thank you for posting this, I'm going to carefully track my TU via CK as I got a strange mid-cycle update from BOFA and I hadn't figured out why yet... wasn't graduated early and don't think there was any other change on the tradeline unless their fraud detection department caused some strange interstitial reporting of the tradeline.   Unfortunately I haven't been pulling my CK daily and I don't subscribe to one of the more useful CMS's (USAA or other) so I don't know when it updated.

 

Either way it was a little combersome, and did make me decide that pushing a 3.5K high limit on a 5K tradeline was enough to justify usage before I wrote the check for the balance instead of my original plan to let it float over 4K.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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ItchyAppFingers
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Re: Real Time Balance Reporting is Hurting Consumers

+1
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