Paying balance how credit card know if I did it in full?
Answers:
Depending on the reporting of the credit card company and how fast the credit reporting companies post this information will determine how your score will be effected.
You might have to wait for the next billing cycle. Try not to do this while making a big purchase because it might show a balance, even though the balance is really zero.
My post to someone else applys here also...
Hello,
I just wanted to add paying off your cards in full every month does not always help your score. I have had clients charge 80% or more on there card thinking they will pay off the balance every month and they will be fine. The reality is that CC companies report your balance on the statement closing day. If you think about it that is the day every month that people who max there cards out every month are at there maximum.
Oh sure you might pay it off in full 5 days later but guess what to late its already been report 80% maxed. buy the time the statement closing date comes again in about 25 days or so you will be maxed again and it will be reported.
The trick is to charge what you need to and pay it off before the statement closing date. This way when the CC reports it reports low balance and does not trash your fico score. You can max the other 24 days just make sure its paid on that 25th day.
Good Luck
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
More Related Questions and Answers...