Does “reporting” a balance have any added value?

[KLEXH25]

I feel silly for asking this, but in all of my reading and posting, there is a question I have that I haven’t quite figured out the answer to yet. Of my three cards, I typically let a balance report on my DCU Visa and/or Discover, but I usually just pay the Capital One before it reports. Is there any benefit to allowing a balance to report occasionally? I should mention that I never carry a balance either, but wasn’t sure if it somehow looked better to the issuer that something reports, rather than have a $0 minimum due every month. My guess is it doesn’t matter because they see your every day use, but I figured I’d settle it once and for all.

[SouthJamaica]

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@KLEXH25 wrote:
I feel silly for asking this, but in all of my reading and posting, there is a question I have that I haven’t quite figured out the answer to yet. Of my three cards, I typically let a balance report on my DCU Visa and/or Discover, but I usually just pay the Capital One before it reports. Is there any benefit to allowing a balance to report occasionally? I should mention that I never carry a balance either, but wasn’t sure if it somehow looked better to the issuer that something reports, rather than have a $0 minimum due every month. My guess is it doesn’t matter because they see your every day use, but I figured I’d settle it once and for all.

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It is optimal to let one of your 3 cards report a small balance before paying it off.

[KLEXH25]

I definitely understand that part. I accidentally allowed $0 to report on all three of my cards and lost 12 points across the board! But does it matter to rotate which card reports the balance (ie Capital One, which I never let report)?

[thornback]

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@KLEXH25 wrote:
I feel silly for asking this, but in all of my reading and posting, there is a question I have that I haven’t quite figured out the answer to yet. Of my three cards, I typically let a balance report on my DCU Visa and/or Discover, but I usually just pay the Capital One before it reports. Is there any benefit to allowing a balance to report occasionally? I should mention that I never carry a balance either, but wasn’t sure if it somehow looked better to the issuer that something reports, rather than have a $0 minimum due every month. My guess is it doesn’t matter because they see your every day use, but I figured I’d settle it once and for all.

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I haven't seen any indication (through my own or the experiences of others) that letting a balance report - whether monthly or occassionally - has any bearing on how the issurer views your account.  I think since they can see your spend regardless, it really doesn't matter -- they just want you to use the card.   

[Anonymous]

I agree that the CCC with which you're constantly reporting $0 can see your spend regardless, so from their perspective it doesn't matter.  Where I do feel an argument can be made is with respect to other CCCs that are looking at your report.  If all they see is $0 reported every cycle on a particular card, they may feel that you're not using the card.  Whether that matters (positively or negatively) from their perspective is arguable.  I personally think it's a good thing to allow balances to report naturally for the most part, as it lets all of your lenders see that you're constantly using/managing all of your accounts.

[simplynoir]

For a particular issuer since they know your usage and history probably not. But for other lenders who pull your reports whether it's SP account review or HP for an application I'm of the opinon it matters. Since it will show the highest reported balance and your ability to pay it off I think that counts for a lot to show you can handle large balances if you're already a PIF person. Shows you can handle larger limits and demonstrates your ability to pay your debts off in a timely fashion.

[NRB525]

I let balances report naturally and have had some whoppers. Even recently, letting $10k or more report as it is being paid down on a $0 fee, 0% BT.

It theoretically might help, except when the accumulation of a lot of large balances causes AA, which I got from the whoppers. Others report that recently.

In the long run, if you make all your payments on time, it can help. But that’s because the #1 rule in credit is always pay on time. Everything else is a choice in how to use credit, and has less bearing in the long run than paying on time.

[Anonymous]

Its definitely good to have organic reporting, particularly if the lender uses TransUnion. 

Accounts get reported with 2 years of history of balances and payments. I would assume that Equifax and Experian have this data too and just don’t put it on the consumer credit reports like TransUnion does. 

I did actually use this card after March of last year, I just never let it report. It looks like I flat out didn’t use the card the rest of the year so I’m going to have to start letting all of them report when I use them. 

[HeavenOhio]

There's room for payment information in all three reports. But few banks provide it. For most cards, it's just a bunch of empty space.

[KLEXH25]

Thanks for sharing that, @Saeren - that’s exactly what I was thinking about. It totally looks like it isn’t being used. So from the issuer’s perspective, it’s probably fine, but from an outsider’s view it looks like you stopped using it.

Right now, because of my lower limits, it’s hard to let anything report organically. I have to pay several times a month and be mindful of statement cut dates, and other balances (hence the 12 pt loss for paying off all my cards, because I timed it wrong). Since I want to apply for a new card soon and look into refinancing my loan, I’m trying to optimize my scores. Ultimately, my goal is to get my limits to a point where I don’t have to worry about these little tidbits, but until then.....