Question on Equifax score

[Anonymous]

At the beginning of this situation I was sitting at 718 with Equifax but for the last two billing cycles my score has dropped when Capitalone reports I have a balance of $20.00 on the card despite the fact that I pay it off before the due date. It is a Secured Card with a $200 limit and I have been paying it off in full for the last 4 months (new and ONLY CC) I possess. This 1st time it was a $19.00 balance that dropped me from 718 to 711, then a $20.63 Balance dropped me from 711 to 706. I don't understand how this could be considering that they are showing that I pay the entire balance every time and have never been late. Your thoughts and suggestions would be most appreciated. Cheers!

Dan

[gijoe4500]

Try paying it off a couple days before the statement date.  Cap1 reports your statement balance to the credit bureaus.

[Anonymous]

Ok, it looks like my statement date is the 22nd of each month but what good does it do for my credut score in general if all Capial One ever shows is a $0 Balance on the card? I thought the point was to show consistant, responsible usage reflecting my DESIRE to use credit without a NEED for credit..... Thoughts?

[kjm79]

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@gijoe4500 wrote:

Try paying it off a couple days before the statement date.  Cap1 reports your statement balance to the credit bureaus.

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Yep.  What gets reported is the balance on your statement.  Due date means nothing in regards to the amount reported to the CRA's.  You have to figure out your statement date and then next month pay the balance off BEFORE the statement generates.  Also, sometimes having a ZERO balance can hurt you.  You said this is your only CC right?  Having a zero balance might hurt more than having a small balance.   You might have to play with the balance until you can find your optimum score potential.  Leaving a small balance of 1-9% is what most often suggested.  So make a payment before the statement generates, but leave a small balance and let that small balance report, then pay off the remaining balance BEFORE the due date. 

[Anonymous]

Good suggestion but I think I'm going to sit on it for awhile and leave the balance as $0. I'm building a house and expect to close sometime late Feb so I really can't afford to have it dip if I guess wrong.