Why does Chase report $0 mid-cycle?

[Anonymous]

Simple question really and I just never knew the reason why.  Anyone know what the reasoning is behind Chase reporting balance payoffs to $0 mid-cycle rather than just waiting and reporting once like the majority of lenders do at the end of the cycle?  I know there are a few examples out there of other banks like Synchrony reporting a balance on occasion mid-cycle, but Chase is the only one I know that follows this clear policy of always reporting those $0 balances immediately every time.  If anyone has some insight I've always wondered why.

[PutThatMoneyOnTheTable]

I would like to know too.

I paid off a small balance last week (to $0) and they reported it. 

[blindambition]

Not really sure why systems are programmed to automatically report 0, but I've always loved it when paying off large balance.

Just don't use a Chase card as reporting card when practicing AZEO.

[Remedios]

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@blindambition wrote:

Not really sure why systems are programmed to automatically report 0, but I've always loved it when paying off large balance.

Just don't use a Chase card as reporting card when practicing AZEO.

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Chase cards are perfectly fine for AZEO.

Once the statement cuts, you put a charge on it, then when it posts, you pay statement balance. 

[K-in-Boston]

Likely it's due to their interpretation of the FCRA and historically being a very large issuer of mortgages where near-immediate changes to their customers' DTI after a payoff can result.

[imaximous]

I don't know the answer either, but I really like that they do it.

One of my cards closed over the weekend and balance is about $40k. The limit is $44k. Totally maxed out. Overall UTIL is still comfortably under 10%, but I did get some 'panic' email alerts from bureaus plus score drops. Now I'm going to pay it off and be back to 0% on that card in a couple of days. Because of the level of business charges we put on some personal cards, being able to do this is really great to avoid any possible AA. There may be a lender or two that are not too comfortable seeing our spend patterns. Hope that never changes.

[Anonymous]

KiB thanks for the post above.  It sounds like no know really knows "the" answer; I wasn't sure if there was an answer or if it would be basically guesswork on our end.

[Anonymous]

I would not question a good thing 

[Anonymous]

Whether or not it's a good thing is somewhat subjective and depends on the situation.  There are times that I've indeed found it to be a good thing and other times that I've incurred an unplanned AZ penalty because of it. 

[Anonymous]

How much is your all-zero penalty in actuality? FICO simulator reflects AZ vs. AZEO being a 5 point hit to FICO 8.