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Small Balance Credit Caused All Zeros

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Gardenhand
Regular Contributor

Small Balance Credit Caused All Zeros

Hey gang---just learned that some credit cards will give small balance credits when the statements cut because it's not worth processing a payment for small balances. For me they credited two dollars which I had purposely left to maximize my credit scores and keep my DTI super low for a mortgage application I'm planning in the very near future. So now all three of my credit cards have zero balances yet the most recent zero has yet to be reported to the Credit bueras to my knowledge. 

 

Current scores: 765-772-784

 

How much should expect my scores to drop going from one card reporting a small balance (3 dollars) to all cards reporting zero?

My next card to have the statement cut is the 24th so I suppose I will just wait and leave a small balance on that one and then wait for them to report to all three bueras. I'm thinking I will leave a five dollar bill on that one to avoid this again.

 

Message 1 of 9
8 REPLIES 8
Revelate
Moderator Emeritus

Re: Small Balance Credit Caused All Zeros


@Gardenhand wrote:

Hey gang---just learned that some credit cards will give small balance credits when the statements cut because it's not worth processing a payment for small balances. For me they credited two dollars which I had purposely left to maximize my credit scores and keep my DTI super low for a mortgage application I'm planning in the very near future. So now all three of my credit cards have zero balances yet the most recent zero has yet to be reported to the Credit bueras to my knowledge. 

 

Current scores: 765-772-784

 

How much should expect my scores to drop going from one card reporting a small balance (3 dollars) to all cards reporting zero?

My next card to have the statement cut is the 24th so I suppose I will just wait and leave a small balance on that one and then wait for them to report to all three bueras. I'm thinking I will leave a five dollar bill on that one to avoid this again.

 


Interesting, which lender did this?

 

I'd heard of others giving $1.50 credits previously but $2 was considered safe previously.  You're looking at 20ish points or so I think for all $0's, yeah just let $5 or $10 report... my usual report when I'm managing my reported balances is usually on the order of $35 but lower than that from testing is fine but I haven't found a creditor who issued me a credit yet but I haven't tried $1 with all of them.

 




        
Message 2 of 9
Gardenhand
Regular Contributor

Re: Small Balance Credit Caused All Zeros

Thanks for the info---it was Discover that got me the free coffee this morning. After this I've read up that they will credit 1.99 or less but they gave me the full two dollars. Now I know haha

Message 3 of 9
pipeguy
Senior Contributor

Re: Small Balance Credit Caused All Zeros

I'd be careful about doing this on a regular basis especially if you start to assume it'll happen.

 

See this tread: http://ficoforums.myfico.com/t5/General-Credit-Topics/Help-I-left-3-dollar-balance-on-my-credit-card...

 

Message 4 of 9
Gardenhand
Regular Contributor

Re: Small Balance Credit Caused All Zeros

Thanks for the tip. I have an automatic payment set up as a safety net just in case I space a payment like this. It's set up to pay the statement balance in full before the due date however I manually pay it as soon as the statement cuts. That would really be a bummer tho.

Message 5 of 9
Anonymous
Not applicable

Re: Small Balance Credit Caused All Zeros

I scored 7¢ off Cap One in January.

Message 6 of 9
Gardenhand
Regular Contributor

Survey Says

Old scores: 766-772-784

After All Os 749-760-768

 

Im looking for a bounce end of month after my next card reports :/

Message 7 of 9
NRB525
Super Contributor

Re: Small Balance Credit Caused All Zeros


@Anonymous wrote:

I scored 7¢ off Cap One in January.


I scored $0.64 off Citi in October, then they used the autopay anyhow ( set up for $100 per month ) to do a $0.64 autopayment.

I still got the $0.64, they haven't clawed it back yet. And I wasn't late on paying the $0.64 Statement Balance. That would have really been bad.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 8 of 9
CreditMagic7
Mega Contributor

Re: Survey Says


@Gardenhand wrote:

Old scores: 766-772-784

After All Os 749-760-768

 

Im looking for a bounce end of month after my next card reports :/


 

 

Those scores will bounce back nicely for you next round.

Message 9 of 9
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