Capital One allows it members to pay a small percentage over the current balance. In an effort to show recent credit card usage I carried an intentional balance last month.
However, in an effort to ensure the account has a zero balance this month I added a few dollars to account for interest charges. I over estimated my interest charges and will likely have a $2 - 3 negative balance.
It is too late to make a charge to hit the card as its the weekend and will likely reminder pending as the statement generates in the next day.
Question: Does FICO Scoring see a negative balance as zero or does it calculate the scoring as a balance (regarding if it's a credit balance)?
Thoughts and Opinions welcomed as I am seriously stressing as I was looking at starting the mortgage process this month...
@Anonymous wrote:
Capital One allows it members to pay a small percentage over the current balance. In an effort to show recent credit card usage I carried an intentional balance last month.
However, in an effort to ensure the account has a zero balance this month I added a few dollars to account for interest charges. I over estimated my interest charges and will likely have a $2 - 3 negative balance.
It is too late to make a charge to hit the card as its the weekend and will likely reminder pending as the statement generates in the next day.
Question: Does FICO Scoring see a negative balance as zero or does it calculate the scoring as a balance (regarding if it's a credit balance)?
Thoughts and Opinions welcomed as I am seriously stressing as I was looking at starting the mortgage process this month...
It reports the credit balance as a zero balance [in fact in my case it usually sends me a refund check, thus making it an actual zero balance]
@Anonymous wrote:I applied for a card this morning and was denied saying that I had too many accounts with a balance, bureau: Experian. This struck me as odd because I don't have a balance on any card as far as I know, so I checked all relevant websites (the credit cards themselves, and then Experian). The tab where it says "Negative factors" listed too many accounts with a balance. If I clicked that, sure enough, up came all of my negative balances. I recently went through and accepted some cash back offers that I had been saving up and so they're not major balances -- no more than 40 bucks, but those were the only accounts listed.
I know the FCRA covers this and says that they're supposed to be considered zero balances, but given how opaque the scoring process is -- are we sure? How do we know for sure?
Would you cut and paste the relevant information off the Experian report?
I've never seen any lender personally (Amex, BOFA, Cap 1, Chase) report a <$0 balance as anything other than $0 regardless of how I got there. Granted this could've changed with an application update but I'm not even certain if the bureaus can receive a negative balance TBH but I haven't seen any sort API recently.
