how does it work re. getting a zero balance to show on credit cards?

[seratonin]

Hi.  I hope someone can clarify this for me.  I use my credit card a lot but usually pay it off each month wanting the balance to be reported as zero to the credit bureaus.  At first, I thought I needed to pay it off right before the monthly statement so the balance would be zero.  This did not seem to work perfectly as I would start to use the card again and sometimes a ballance would show up on my credit report even though the monthly statement had said zero balance.  Or is the balance reported on the first day or last day of the month?  How long does it take for the balance to be reported to the credit bureau?  Is there a time lag where an old balance might show up even though you have a current zero balance?  Or is it a 'real time' thing where they see the actual balance at the time a credit report is requested?  I appreciate your help.

[DI]

You want to pay the balance in full by the due date.  And you do not want to use that card again until after the statement generates.  There is a lapse time between the due date and when the statement generates.  It's usually no more that 5 days.  That will ensure a zero balance to report.  But sometimes banks will update the tradeline with the CRA's twice within a month.  BOA and Discover is known for doing that regularly, but not too often.  AMEX reports one month behind.

Message Edited by DI on 12-23-2009 08:13 PM

[Creditaddict]

It varies by bank rather they report when your statement cuts (when you get your bill) or maybe the first of each month.

But really you don't want a $0 balance to report unless you have other credit that is not reporting a zero balance.  but for best scoring you want 1-9% to report.