Credit card $0 balance reporting

[Woodyou812]

I'm attempting to purchase a home and I'm working on my credit. I have high utilization right now and will be paying everything off next week. 

I need to get the bureaus to update the accounts ASAP, and I've read that when you pay a balance to $0, the credit card companies report immediately to the bureaus.

However, I've also read that it can hurt your score. Now, my score is low right now (639) and so paying down my utilization will no doubt help. So what would be the best course of action? Pay them to $0, get them to report to the bureaus, and then carry a <10% balance to show some utilization? 

[Anonymous]

I have found that on the accounts that I have, the cards don't report untii the balance until a statment is generated, but YMMV. My reccomendation to you that has worked for me and my wife is pay the card to all but $1 and have it processed at least 3 days before the statement will post. This way the card issuer will post a small balance on the account and shows a less than 10% UTL

[Anonymous]

Pay everybody off to zero EXCEPT one card - pay that one off down to some random amount less than 10%.

Then call the lenders, once the payments post/clear your bank, and nicely ask if they can initiate a mid-cycle report for you.  Some will, some won't, but it only costs you a few minutes on the phone with each to ask. Tell them you're about to app for a mortgage, and would greatly appreciate a mid-cycle reporting from them to have your newly paid-down balance appear now instead of waiting a month.

Do not pay everyone to zero.  Leave that tiny balance on one card - can literally be $10 - or you will knock yourself into FICOland's "not ideal" category and actually could lose a few points.  Having one out of (at least) three accounts reporting with a balance of less than 10% of its limit is the "sweet spot" for maximum FICO points on utilization.

[Anonymous]

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@Woodyou812 wrote:

I'm attempting to purchase a home and I'm working on my credit. I have high utilization right now and will be paying everything off next week. 

I need to get the bureaus to update the accounts ASAP, and I've read that when you pay a balance to $0, the credit card companies report immediately to the bureaus.

However, I've also read that it can hurt your score. Now, my score is low right now (639) and so paying down my utilization will no doubt help. So what would be the best course of action? Pay them to $0, get them to report to the bureaus, and then carry a <10% balance to show some utilization? 

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High balances hurt you far more.... particularly with a damaged profile.