Regular Contributor
Posts: 245
Registered: ‎12-27-2012

How is balance reported by a lender?

Hello All,


Happy New Year 2013 to all, I wish you all to have a better score this year.


My question is about "utilization". I want to have a rough idea about how does a lender report balance. Since the balance that we incur is so dynamic, do banks have some sort of rule on which balance to report to TU, EX and EQ?


I run all of my expenses thru one of the CC I have. Sometimes I am making a payment of $995.00 from a credit card with a limit of $1000 but then I pay it off right away, mostly within the next couple of days(or as soon as the lender allows me to pay). Is that a good practice to max out CC but then pay off right away in full? 


Please suggest if I should avoid doing that for the sake of util.




~ 100k in Rev CC. 15k Credit Line. 16.5k Car Loan(@1.7%) Starting scores: 690 EQ (Dec 2012) Mid-year FICO scores April ‘13 Pulled by lenders(Barclays, Amex): TU 747 • EQ 752 • EX 746 • Scores As of Nov 2013: 740 and above across the board.
Posts: 9,674
Registered: ‎01-28-2010

Re: How is balance reported by a lender?


Lenders typically report your balance as it appears on your monthly statement.    So all that matters from a credit reporting perspective is what your balance is at the time each creditor cuts a new statement.



March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Frequent Contributor
Posts: 496
Registered: ‎11-13-2012

Re: How is balance reported by a lender?

Also consider some creditors report mid-cycle.  Although it's not happened to me there are others here that shared instances where non-statement balances were reported.  If that happened you'd be in bad shape @ 99.5% util.

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