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Frequent Contributor
CreditBob
Posts: 498
Registered: ‎05-01-2007
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Fico scoring associated with zero balance

If you want to nkow the most accurate way to get a fico score when the balance is paid in full, do this. Do not go by the due date. Instead find out when the close out date, or billing cycle, or staement date takes palce each month. That is when the creditor takes the inforamtion on your account & sends it in to the credit bureaus. You will have to ask each of your creditors. If the date is on the 25th of each month and you want to reflect a zero balance on your report then pay off the account or accounts between the 20th & 23rd. Do not use the account until the 27th. My billing cycle is at the end of the month, so on the 30th I paid off my visa. On the 2nd of the follwoing month, 3 days later, my credit report reflected the zero balance. You can use this to your advantage because you can actually manipulate your fico score the right way within a week or less.
BOTTOM LINE: DO NOT GO BY THE DUE DATE. USE THE BILLING, CYCLE, OR STATEMENT DATE.
 
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Super Contributor
MidnightVoice
Posts: 8,157
Registered: ‎03-25-2007
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Re: Fico scoring associated with zero balance

Hmmmm. We have been talking about this for about 9 months!
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Frequent Contributor
CreditBob
Posts: 498
Registered: ‎05-01-2007
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Re: Fico scoring associated with zero balance

I just saw the question come up again from a new member.
Super Contributor
MidnightVoice
Posts: 8,157
Registered: ‎03-25-2007
0

Re: Fico scoring associated with zero balance



CreditBob wrote:
I just saw the question come up again from a new member.



The search function is your friend :smileyhappy:
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Mega Contributor
RobertEG
Posts: 18,215
Registered: ‎03-19-2007
0

Re: Fico scoring associated with zero balance

[ Edited ]
CreditBob is correct, but unfortunately this alone will not even ensure a PIF.  Paying the old balance, plus all activity since the last bance, will not ensure a PIF.  Credit card companies charge daily interest based on daily balance times APR/365.  These interest charges dont post before the next statement date, so just paying off the old balance, along with any charges made since the last statement date, will not take into account the daily interest accrued since the last statement.  Unless you do a daily tracking of your account balances, and thus actual interest accrued, and add this to your payment, then paying off current posted balances from your last statement, plus charges made since then,  will NOT ensure a PIF if any charges were made during the past month.
Yeah, yeah, I hear you saying... this is only a few bucks, so who cares!  But the FICO model scores, amongst other things, on the number of cards with balances, and keeping it below 50% of cards with balances may be really important for someone trying to tweak their FICO for an immediate application for new credit.  YOu might want to consider paying a little more than your expected PIF is that is your strategy....


Message Edited by RobertEG on 02-05-2008 03:21 AM

Message Edited by RobertEG on 02-05-2008 03:28 AM
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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Fico scoring associated with zero balance

I PIF my cards 4 or 5 days before the statement date, and I never, ever, ever have finance charges. My cards all have grace periods that last at least until the statement date, so no interest accrues.

I haven't seen any interest posted on a card in 7 or 8 months, including on $9K worth of flooring put on one card that stayed there for almost four weeks.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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