Balances paid in full each month and how its reported

[Anonymous]

The previous thread was locked and I'm not trying to cause any trouble, but here is an example of where myfico.com actually says that even paying your balance in full can result in it being reported on your credit report.  It does say "may" and not "will", so there is some basis for those who do not see that happening.  Maybe it depends on card issuers, I had just always assumed it was a fact on ALL cards, so I think I owe it to Guardian to admit that.

Have 2 mortgages, student loan, and one health care cc (0% offer from eye surgery) with balances.  My other 2 rewards cards are paid off in full each month, but it still shows 6 with balances on all my credit reports.

Directly from my last Tu credit report:

You have too many credit accounts with balances. Number of your accounts carrying a balance
6 accountsFICO High Achievers [?] have an average of 3 credit accounts carrying a balance.

Your FICO score considers the number of accounts you have with balances. For credit cards, even if you pay them off in full each month, your credit report may still show a balance on those cards. The total balance on your last statement is generally the amount that is shown on your credit report.

What to do about this: You should consider reducing the number of your accounts that carry a balance and keeping your balances low.

[Scamp]

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vawt wrote:

The previous thread was locked and I'm not trying to cause any trouble, but here is an example of where myfico.com actually says that even paying your balance in full can result in it being reported on your credit report.  It does say "may" and not "will", so there is some basis for those who do not see that happening. 

For credit cards, even if you pay them off in full each month, your credit report may still show a balance on those cards. The total balance on your last statement is generally the amount that is shown on your credit report.

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This IS true - it's a matter of timing and which CCC and which reporting method that CCC uses.

The majority of myFICO members who have posted their statement balance/amount reported experiences on here have noted that the most common practice among CCC's is to report the account balance as of the statement date, usually doing their reporting within 24 hours of the statement cutting (though usually it does take the CRA's a bit longer to update their stuff - my reports take a week or so to get in synch).  There are some exceptions to this generalization, but that's the most common practice, and I've never experienced the 30-day delay in reporting Guardian mentioned; nor have I read anyone else on here describe such a delay.

The FICO comment you cited is correct, in that if you wait until after your statement cuts to pay your account in full with a CCC that follows this most-common reporting practice, it's most likely that the pre-PIFstatement balance is what the CCC reports to the CRA's, and reports right away.  This has been borne out by my own experiences with several CCC's.  They report whatever my balance was as of the statement cutting date, regardless of whether or not I pay the balance in full promptly after I receive my statement (again, there are some exceptions to this general rule, including AmEx's weird reporting).

Guardian's stated experience that he sees zero balances reported for his accounts when following the above payment practice, due to a 30-day lag in reporting by his CCC's, would be quite a rare exception to the rule of thumb which anecdotal evidence on here suggests is the most common case.

Message Edited by Scamp on 12-17-2008 08:08 PM

[haulingthescoreup]

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vawt quoted:

For credit cards, even if you pay them off in full each month, your credit report may still show a balance on those cards. The total balance on your last statement is generally the amount that is shown on your credit report.

What to do about this: You should consider reducing the number of your accounts that carry a balance and keeping your balances low.

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Scamp is correct. A lot of this confusion results from text which I wish were more precise.

That's what it's trying to explain to people: even if you pay in full each month, it can look as if you're carrying balances, because the "total balance on your last statement is generally the amount that is shown on your credit report." So if you pay early so that the total balance (due) on your statement is $0, then $0 is probably what will be the amount that is shown on the report. If you wait until the statement posts (as any sensible person would do), then that amount is what you will see on your credit report, and it's the amount that the scoring formulas see as well.

The exceptions that I know of are most (not all) HSBC/ Orchard bank cards. They report the balance that displays on the last business day of the month, regardless of what is on the statement or your billing cycle. American Express will report the amount due on your statement, but they don't report it for four weeks after your statement posts, and just a few days before the next statement posts, which can be really confusing until you untangle it.

Message Edited by Scamp on 12-17-2008 08:08 PM

[Anonymous]

I tried responding too but the last word was given and then locked so I respected that. I appreciate the effort to grant dignity to my efforts but I will submit to the will of the majority and just say I am lucky and its a fluke. Maybe karma is looking out for me, who knows. Thanks though, I appreciate the acknowledgment that there are no absolutes and it can happen. As there might be no hard written rule that supports my experience, there is no hard written rule that supports it is false either.

I am an educated and open minded person, if I see it written somewhere that shows I am wrong, I will personally apologize to all but as long as I am wrong based on majority view, I must humbly stand in the corner alone.

[Anonymous]

@Scamp

I am sorry that my experience is outside the majority, I can't change that. But the fact is that other than HSBC (as stated before) who showed a balance twice, the rest (even the HSBC backed cards) show no balance when paid in full and maybe that's due to some timing that I am luckily beating by habit or I don't know what...but it is fact on my report and I can't say otherwise simply because I am outnumbered.

I didn't serve the corp for 7 years getting shot at by backing out when the outlook is grim, still standing. I respect and appreciate all of your views but I can't just go with the herd simply because I am the only exception (so it seems). Again, sorry for causing grief, I was simply stating what _I_ knew to be true.

Message Edited by Scamp on 12-17-2008 08:10 PM

[Scamp]

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Guardian wrote:
@Scamp
I am sorry that my experience is outside the majority, I can't change that.

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Goodness - your experience being different from the majority on here certainly isn't something that requires apology!   So no worries there.

Guardian wrote:
@Scamp

But the fact is that other than HSBC (as stated before) who showed a balance twice, the rest (even the HSBC backed cards) show no balance when paid in full and maybe that's due to some timing that I am luckily beating by habit or I don't know what...but it is fact on my report and I can't say otherwise simply because I am outnumbered.

Didn't ask you to say otherwise!   And never would. 

It may be that you're actually paying your balances in full just before your statements cut rather than afterward as your original posts seemed to indicate - I don't know; I'm not there when you pay - but if you take a notion to double-check and that turns out to be the case, then yes, indeed, you'd have 0 balances reporting and you'd be in line with what so many of the rest of us have experienced. 

Or you may just actually be a lucky devil who gets to pay afterward and still get a zero balance reported!   If so, enjoy your unique status in the world of cc's!

Guardian wrote:
@Scamp

I respect and appreciate all of your views but I can't just go with the herd simply because I am the only exception (so it seems). Again, sorry for causing grief, I was simply stating what _I_ knew to be true.

And we respect and appreciate your experience and view - we just aren't able in this case to let it be a 'truth for all' and the best advice we can give on here, because our advice has to be based on the anectodal evidence of a majority, not just one person, in situations wherein anectodal evidence is all we have to go on when formulating our rules of thumb that seem to work best when successfully managing credit.

By all means - throw in your two cents!    Just please realize that if you happen to be what appears to be the exception to one of those accepted rules of thumb, your two cents will have to be cautionarily (and, one hopes, respectfully) rebutted for the sake of those reading who would be too likely to get bitten in the backside if they go with your unique-experience two cents.

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Guardian wrote:
@Scamp

I didn't serve the corp for 7 years getting shot at by backing out when the outlook is grim, still standing.

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THANK YOU so very much for your service.  Honored to have you here!

Message Edited by Scamp on 12-17-2008 08:11 PM

[Anonymous]

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@Scamp wrote:

Goodness - your experience being different from the majority on here certainly isn't something that requires apology!   So no worries there.

It seemed that I stepped on toes without intending any harm. I paved the road to hell with my good intentions to share my experience and well friendly fire or not, I got burned for it. Anytime you disturb the peace, intentional or not, apologies seem appropriate.

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@Scamp wrote:

Didn't ask you to say otherwise!   And never would. It may be that you're actually paying your balances in full just before your statements cut rather than afterward as your original posts seemed to indicate - I don't know; I'm not there when you pay - but if you take a notion to double-check and that turns out to be the case, then yes, indeed, you'd have 0 balances reporting and you'd be in line with what so many of the rest of us have experienced. Or you may just actually be a lucky devil who gets to pay afterward and still get a zero balance reported!   If so, enjoy your unique status in the world of cc's!

As I said that might very well be true, as I am on top of my balances pretty regularly and almost daily. I know when my statements cut, so I schedule a payment to hit on or just before it so when the statement cuts it has a zero balance. That may very well be the habit I told you about that is making me "lucky" if you will.

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@Scamp wrote:

And we respect and appreciate your experience and view - we just aren't able in this case to let it be a 'truth for all' and the best advice we can give on here, because our advice has to be based on the anectodal evidence of a majority, not just one person, in situations wherein anectodal evidence is all we have to go on when formulating our rules of thumb that seem to work best when successfully managing credit. By all means - throw in your two cents!    Just please realize that if you happen to be what appears to be the exception to one of those accepted rules of thumb, your two cents will have to be cautionarily (and, one hopes, respectfully) rebutted for the sake of those reading who would be too likely to get bitten in the backside if they go with your unique-experience two cents.

Agreed

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@Scamp wrote:

THANK YOU so very much for your service.  Honored to have you here!

The honor has always been mine to be one of the few and do my part. In for life, pain is temporary but honor is forever; so we always believed and still do. It is an honor to be here and gracious of you to show love. Thank you.

Message Edited by Scamp on 12-17-2008 08:12 PM

[Scamp]

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Guardian wrote:

 I know when my statements cut, so I schedule a payment to hit on or just before it so when the statement cuts it has a zero balance. That may very well be the habit I told you about that is making me "lucky" if you will.

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If you're doing what I highlighted in red, then you're part of the myFICO 'herd', following common practice and knowledge on here. 

You're only a 'lucky devil' FICO-wise if you pay in full AFTER the statements cut and still get those zero balances reported! 

As with so many things in life, 'timing is everything'. 

Thanks again for your service - we need to corral Timothy, get him over here to say 'Semper Fi'.  And somebody else on here is 'one of the few'...Fused, maybe...?

[Anonymous]

Semper Fi, once a brother, always a brother.

[Scamp]

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Guardian wrote:
Semper Fi, once a brother, always a brother.

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Eek - if my post made you think I'm 'one of the few', then I must apologize - I'm not!   (though if I were it would be 'once a sister, always a sister' - I'm female )

Sorry - I only meant that (I think) Timothy is - or was - and therefore could rightly and honorably say 'Semper Fi'.

(edited for typing flubs)

Message Edited by Scamp on 12-17-2008 08:07 PM