A bit Frustrated

[Anonymous]

So I opened a new credit card with my CU last month and was told it wouldn't be reported to the credit bureaus until after my first statement payment. Today to logged in to my Experian credit tracker and see that the just started reporting it. Now, normally this would make me happy to have my new positive TL reporting but I wanted to pay the balance before the statement closed so it would report a $0 balance. But I haven't even receive my first statement yet!! The balance is only about 10% of the limit but since I carry a balance on my Jared card for the time being I really didn't want anymore balances reported. So thus my frustration. Is this normal for a new bank card to report a balance before the statement is received?? I just want to make sure I handle this new card correctly so I maximize my points on my rebuilding journey.

[takeshi74]

It varies by creditor and it's no big deal.  Adjust it by the next time it reports.  Your utilization will update when the next balance reports.

[Anonymous]

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@takeshi74 wrote:

It varies by creditor and it's no big deal.  Adjust it by the next time it reports.  Your utilization will update when the next balance reports.

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Thanks for your response! I just didn't want to start off on the wrong foot with my new card. But if its not such a big deal, I'll breathe a sigh of relief

[Anonymous]

No need to worry, your score will bounce back when the next statement reports. I believe it was takeshi who said, "your scores are as fluid as utililization itself" ... or something along those lines. One of my favorite one-liners!

[Anonymous]

Pull a credit report and note on each account what day it reports and check the closing date on each as well.

Make sure to pay in full (or close) before the closing date.

People here say that the FICO algorithm has no memory for utlization, so pay next month and your score should go up. 

I missed last month and working on correcting this month card by card... my Commenity Bjs Mastercard is closing today and should report early next week. I'm curious to see the UTI score bump as I've taken the balance down from $1000 (out of 1230) to $20... 

And next I have my Costco Amex closing on the 15th, will try to take balance down to $3K out of $5K and see what happens. 

[stickbowbuilder]

similar situation and I saw about a 17 point bump going from 87% util to 1%. 

[Anonymous]

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@stickbowbuilder wrote:

similar situation and I saw about a 17 point bump going from 87% util to 1%. 

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On a single card? or all your util?

I dropped my overall util from 83% to 55% - resulted in 8 points (will continue to report when more cards are lowered). 

I read somewhere that about 150 points are allocated to utilization, so I assumed a higher jump if you reduce util on all cards.

[MarineVietVet]

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@Anonymous wrote:

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@stickbowbuilder wrote:

similar situation and I saw about a 17 point bump going from 87% util to 1%. 

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On a single card? or all your util?

I dropped my overall util from 83% to 55% - resulted in 8 points (will continue to report when more cards are lowered). 

I read somewhere that about 150 points are allocated to utilization, so I assumed a higher jump if you reduce util on all cards.

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I'm not saying you are wrong but I've never read that number in any FICO related information.

[Anonymous]

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Here is a thread that discussed that, not a solid source yet, but that might be what i've seen before here.

http://ficoforums.myfico.com/t5/Credit-Cards/Credit-Card-Utilization/td-p/3792738

What is for sure from the official Experian app is that 30% of the EX FICO score is based on "Outstanding debt".

Using the EX FICO Simulator - I'm currently at 55% utlization, EX simulator shows that if I pay down the remainder of my CC debt, my score will go 80 points higher.

[MarineVietVet]

I appreciate the link and again I'm not saying you are wrong but I have yet to see any information like that from a FICO source about the 150 points.

But I will admit that it's very possible I've just missed it.