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Fico goes down every time I pay off balances

Valued Contributor

Re: Fico goes down every time I pay off balances


Thomas_Thumb wrote:

newhis wrote:

geisler wrote:

Thank you for your feedback, this is obviously the problem.  I will carry a small balance on one card.  Is there a card that works better for the balance than another?  I normally use my Chase Visa and My Macy's with AMEX.  I have had the Chase Visa for much longer, but both are "seasoned" cards.


Hey geisler, maybe you don't know but Chase will report your card again if you pay to zero.

 

Let's say you buy something with the card and have a $10 balance and it closes on the 15th, you let that report on the 15th but pay it to zero on the 20th, Chase will report again your card on the next few days with $0 balance. If your other card is $0 too, then your score will drop around 20 points.

 

You need to use it for something, let it report, use it again and pay last month's balance before due date to not pay interest. This is no carrying a balance, just reporting a balance. Carrying a balance is when you do not pay the last statement balance in full by due date.

 


Interesting - so Chase reports mid cycle. I don't have a chase card. Do other banks such as Citi or BOA do this?

 

I generally pay balances a few days before due date and don't recall having this happen but, I admit I don't watch that closely.


I think Chase is the only lender that do this automatically. I read a couple of posts that say that you can ask Discover for a mid cycle report, but you don't need to pay to zero.

 

I don't know if other lenders will report mid cycle.

Message 11 of 15
Regular Contributor

Re: Fico goes down every time I pay off balances


Thomas_Thumb wrote:

newhis wrote:

geisler wrote:

Thank you for your feedback, this is obviously the problem.  I will carry a small balance on one card.  Is there a card that works better for the balance than another?  I normally use my Chase Visa and My Macy's with AMEX.  I have had the Chase Visa for much longer, but both are "seasoned" cards.


Hey geisler, maybe you don't know but Chase will report your card again if you pay to zero.

 

Let's say you buy something with the card and have a $10 balance and it closes on the 15th, you let that report on the 15th but pay it to zero on the 20th, Chase will report again your card on the next few days with $0 balance. If your other card is $0 too, then your score will drop around 20 points.

 

You need to use it for something, let it report, use it again and pay last month's balance before due date to not pay interest. This is no carrying a balance, just reporting a balance. Carrying a balance is when you do not pay the last statement balance in full by due date.

 


Interesting - so Chase reports mid cycle. I don't have a chase card. Do other banks such as Citi or BOA do this?

 

I generally pay balances a few days before due date and don't recall having this happen but, I admit I don't watch that closely.


BOA does NOT.  Don't know about Citi.



EQ: 718 TU: 714 EX: 713

Cap1 QS: 7k USBank: 7k Amex BCE: 5.7k BoA: 5k Discover: 2.2k CareCredit: 6k Various Store Cards: 15.4k
Message 12 of 15
Regular Contributor

Re: Fico goes down every time I pay off balances


kuku4koco wrote:

Thomas_Thumb wrote:

newhis wrote:

geisler wrote:

Thank you for your feedback, this is obviously the problem.  I will carry a small balance on one card.  Is there a card that works better for the balance than another?  I normally use my Chase Visa and My Macy's with AMEX.  I have had the Chase Visa for much longer, but both are "seasoned" cards.


Hey geisler, maybe you don't know but Chase will report your card again if you pay to zero.

 

Let's say you buy something with the card and have a $10 balance and it closes on the 15th, you let that report on the 15th but pay it to zero on the 20th, Chase will report again your card on the next few days with $0 balance. If your other card is $0 too, then your score will drop around 20 points.

 

You need to use it for something, let it report, use it again and pay last month's balance before due date to not pay interest. This is no carrying a balance, just reporting a balance. Carrying a balance is when you do not pay the last statement balance in full by due date.

 


Interesting - so Chase reports mid cycle. I don't have a chase card. Do other banks such as Citi or BOA do this?

 

I generally pay balances a few days before due date and don't recall having this happen but, I admit I don't watch that closely.


BOA does NOT.  Don't know about Citi.


I have cards from Chase, BOA, Citi, Barclay, AMEX, Discover and only Chase does 2 reportings - one on Statement closure and another when I PIF

FICO EX 722, EQ 723, TU 730| Total CL $178,700| INQ EX 7, EQ 6, TU 3:12 Months EX 3, EQ 2, TU 2| AAoA 21 months
CSR $29000Premium Rewards $20000CIP $10000Merril+ $15000CFU $8000BCP $34500Cash Rewards $5500Merril+ $5000TY Premier $7800Macys $20000Arrival $15000Discover $8900
Message 13 of 15
Established Contributor

Re: Fico goes down every time I pay off balances

Just got caught up in this today. My EX score dropped 16 pts due to no cards reporting a balance. I recently had a home equity account show up and its shows as a revolving line of credit and it pushed my utilization way up. I thought I didn't need to let a credit card report with LOC balance reporting but I do. 


Fico 8 scores: EX 820 TU 808 EQ 798
Message 14 of 15
Senior Contributor

Re: Fico goes down every time I pay off balances

Correct, you always want one revolver (credit card) to report a small balance to ensure you don't lose those 16 points.

Message 15 of 15