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Balance Increase = Score Increase?

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Anonymous
Not applicable

Balance Increase = Score Increase?

My BOA CC account balance was $3 before the recent statment and I usually have the balance paid down to zero before the statement.  Of course, since BOAs statement dates are NEVER consistent I missed it this time before I was going to pay down my $300+ balance.  I got an alert yesterday that my score increased, which I thought would actually decrease because of the increase balance on this account.   In fact, one of the items decreasing my score is carrying balances on multiple accounts. 

 

Two are installments and the other two are CCs and the balance on the two CCs combined was $53 which is less than 2% of my util.    It would have been just the $3 from the BOA account if CapOne would let you pay more than %10 of the current balance. 

Message 1 of 10
9 REPLIES 9
MarineVietVet
Moderator Emeritus

Re: Balance Increase = Score Increase?

 


@Anonymous wrote:

My BOA CC account balance was $3 before the recent statment and I usually have the balance paid down to zero before the statement.  Of course, since BOAs statement dates are NEVER consistent I missed it this time before I was going to pay down my $300+ balance.  I got an alert yesterday that my score increased, which I thought would actually decrease because of the increase balance on this account.   In fact, one of the items decreasing my score is carrying balances on multiple accounts. 

 

Two are installments and the other two are CCs and the balance on the two CCs combined was $53 which is less than 2% of my util.    It would have been just the $3 from the BOA account if CapOne would let you pay more than %10 of the current balance. 


 

I can pay any amount I want on my Cap 1 card. Perhaps it depends on what kind of card you have? I don't know.

 

What experience do others have?

 

 

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Message 2 of 10
GregB
Valued Contributor

Re: Balance Increase = Score Increase?

My CapOne personal & business accounts will allow you to pay 110% of the current balance. Why would you want to pay more? 

 

This should be enough to cover any extra amount in interest that won't be billed until statement date. Is someone trying to pay for new charges that don't appear on your account yet? I don't understand if you are paying on-line what reason you would have to pay more.

 

Around half of my accounts will not allow any amount over the current balance. If you are carrying a balance this means you can't have it report $0 at the next statement since you can't pay the interest that has not been billed yet.

Message 3 of 10
MarineVietVet
Moderator Emeritus

Re: Balance Increase = Score Increase?

I may have completely misread the post. It happens quite often.

 

The OP said if Cap One would let you pay more than %10 of the current balance.

 

For example on a $100 balance does that mean they are only allowed to pay $10?  I need clairification.  Smiley Happy

 

 


Message 4 of 10
Jazzzy
Valued Contributor

Re: Balance Increase = Score Increase?


@Anonymous wrote:

My BOA CC account balance was $3 before the recent statment and I usually have the balance paid down to zero before the statement.  Of course, since BOAs statement dates are NEVER consistent I missed it this time before I was going to pay down my $300+ balance.  I got an alert yesterday that my score increased, which I thought would actually decrease because of the increase balance on this account.   In fact, one of the items decreasing my score is carrying balances on multiple accounts. 

 

Two are installments and the other two are CCs and the balance on the two CCs combined was $53 which is less than 2% of my util.    It would have been just the $3 from the BOA account if CapOne would let you pay more than %10 of the current balance. 


Hi TidalWave,

 

I have only one credit card that doesn't give me the statement closing date online. I email them ahead of time each month to find out my closing dates, and this month they listed all my closing dates for the rest of the year. That was nice.

 

No reason to miss a closing date...it's just that you might have to ask.

Message 5 of 10
Anonymous
Not applicable

Re: Balance Increase = Score Increase?

I have the 2% cash back card with $750 credit limit.  I'm starting to wonder if I should close it. Its my newest account and its a neg on my report because of the low balance and length of history.  My other cards have a CL of 2k at least.  A PNC bank card sounds more appealing.

 

There is no interest on this card at the moment, so I'm not so much concerned about that.  Its having the balance at zero before the statement date because my score dropped for carrying balances.  Now I have a balance bigger than last months and my score actually increases? Maybe its the utilization of my credit that knocked the score up instead of down, not sure.  

Message 6 of 10
Jazzzy
Valued Contributor

Re: Balance Increase = Score Increase?


@Anonymous wrote:

I have the 2% cash back card with $750 credit limit.  I'm starting to wonder if I should close it. Its my newest account and its a neg on my report because of the low balance and length of history.  My other cards have a CL of 2k at least.  A PNC bank card sounds more appealing.

 

There is no interest on this card at the moment, so I'm not so much concerned about that.  Its having the balance at zero before the statement date because my score dropped for carrying balances.  Now I have a balance bigger than last months and my score actually increases? Maybe its the utilization of my credit that knocked the score up instead of down, not sure.  


Hi TidalWave,

 

If you close this new card, it will still remain on your reports. The low balance isn't a negative on your reports, but I'm sure the age lowers your average age of accounts. Even if you close it, it will still be there having the same effect. Once it's on your reports, it won't go away until about 10 years after it's closed...and by the time it goes away it's usually helping you.

 

Utilization can certainly make a difference in scores from month to month...as can many, many other things.

Message 7 of 10
Anonymous
Not applicable

Re: Balance Increase = Score Increase?


@MarineVietVet wrote:

I may have completely misread the post. It happens quite often.

 

The OP said if Cap One would let you pay more than %10 of the current balance.

 

For example on a $100 balance does that mean they are only allowed to pay $10?  I need clairification.  Smiley Happy

 

 



Nope, it means if you have a $100 balance you are only allowed to pay up to $110 on it. This is usually only problematic if you have pending charges & are trying to pay it all down before the statement cuts. When that happens, I just pay the bill directly from my bank.

Message 8 of 10
MarineVietVet
Moderator Emeritus

Re: Balance Increase = Score Increase?

 


@Anonymous wrote:


Nope, it means if you have a $100 balance you are only allowed to pay up to $110 on it. This is usually only problematic if you have pending charges & are trying to pay it all down before the statement cuts. When that happens, I just pay the bill directly from my bank.


I appreciate the post and it sounds like you're right but I'd like to hear from the OP exactly what they meant.

 

Message 9 of 10
Anonymous
Not applicable

Re: Balance Increase = Score Increase?

Understood. I forgot to mention that I also have a CapOne card & they do the same thing to me.

 

Cheers!

Message 10 of 10
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