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I have had an NFCU CLOC for about a year but really never used it until now. I wanted to pay a large debt immediately but wouldn't have the money in my hands until a few days later. So I remembered I had this unused CLOC. I headed over to the debtor's website and used the CLOC for a large sum. When I got the money I was expecting 5 days later I cleared the balance on the CLOC. In that short amount of time NFCU reported the large sum to the CRA's! My scores fell by 20 points with CRA summaries stating high usage as a factor (the CLOC amount doubled my revolving usage). I'm sure I'll gain the points back when NFCU reports the zero balance but I bet they won't be as fast to report the zero balance!
My lenders report on my accounts the same time each month. I'm pretty sure that's how it works with NFCU.
Maybe just unlucky timing, soloman?
@Anonymous wrote:My lenders report on my accounts the same time each month. I'm pretty sure that's how it works with NFCU.
Maybe just unlucky timing, soloman?
Yes it could be timing. I could just have awful luck.
I would not worry about the temporary hit to your scores, once paid or paid down your scores will recover. Funny thing is I see a lot of posts where MF members worry about their score snapshot a day at a time, but that really doesn't matter because scoring has no memory (other than derogs) and you only need "peak scores" when you need them for new approvals - ego hit aside the daily swing scores just sit there and have little value otherwise.
@pipeguy wrote:I would not worry about the temporary hit to your scores, once paid or paid down your scores will recover. Funny thing is I see a lot of posts where MF members worry about their score snapshot a day at a time, but that really doesn't matter because scoring has no memory (other than derogs) and you only need "peak scores" when you need them for new approvals - ego hit aside the daily swing scores just sit there and have little value otherwise.
I totally agree. I only made this post to warn anyone who might have a good reason why a big temporary dip in score is harmful. I do not need to apply for any credit. Gaining knowledge about the credit world and then sharing that knowledge is how the myFICO family operates.
@Anonymous wrote:
And thank you for sharing that information. I love reading/learning about the negs & the positives, the bad luck to the good luck, the ins & the outs, gains and losses, the rights and the wrongs! Its all important information to ppl like me. Thanks OP!
You are welcome and I am happy to share.
@Anonymous wrote:
On the CLOC it closes with your checking account statement date and that is also your due date, but reports on the 1st if the month. It surprised me too the first time I used it. Now I use it all month and pay off the before the end of the month.
Darn it I wished I had known this! It caught me right in the middle of the short time I had a balance. I will do like you from now on and use all month and pay off before end of month. Do you pay off on the 28th or 29th just to be safe?