Credit Card High Balance Impact on Credit Score
Guest: jlrdc909
Credit Expert (100+ Posts)
Post subject: Credit Card High Balance Impact on Credit Score
Posted: Thu Jun 22, 2006 6:53 am
Has anyone had this problem:
Recently I was reviewing my credit report. I noticed that my high balance was not one month, but nearly 2 months worth of purchases.
My limit is $5,000 and my purchases were reported at nearly $2700.00, this caused a drop in my score, however the $2700.00 was 2 months combined, I am not worried about this, but has anyone else had this happen?
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Guest: hdporter
Credit Expert (100+ Posts)
Posted: Thu Jun 22, 2006 8:07 am
While many creditors only report your balance as of your last billing date, some continually update your reported balance. Thus, your reported high balance might represent your last statement balance plus all charges up to your payment of the statement. If you pay close to the due date for the statements (just before new billing), this could easily represent 2 months of purchases.
To my knowledge, this is no big deal. Having had a high balance in the past near your credit limit doesn't impact your score. However, during that time that your balance builds prior to a payment, your current balance may temporarily ding your credit score. Many of us likely encounter this from time to time. I wouldn't sweat it. The situation immediately reverses itself with your payment. If you have a critical credit transaction in process, you may wish to pay your statement immediately upon receipt.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Credit Expert (100+ Posts)
Post subject: Credit Card High Balance Impact on Credit Score
Posted: Thu Jun 22, 2006 6:53 am
Has anyone had this problem:
Recently I was reviewing my credit report. I noticed that my high balance was not one month, but nearly 2 months worth of purchases.
My limit is $5,000 and my purchases were reported at nearly $2700.00, this caused a drop in my score, however the $2700.00 was 2 months combined, I am not worried about this, but has anyone else had this happen?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hdporter
Credit Expert (100+ Posts)
Posted: Thu Jun 22, 2006 8:07 am
While many creditors only report your balance as of your last billing date, some continually update your reported balance. Thus, your reported high balance might represent your last statement balance plus all charges up to your payment of the statement. If you pay close to the due date for the statements (just before new billing), this could easily represent 2 months of purchases.
To my knowledge, this is no big deal. Having had a high balance in the past near your credit limit doesn't impact your score. However, during that time that your balance builds prior to a payment, your current balance may temporarily ding your credit score. Many of us likely encounter this from time to time. I wouldn't sweat it. The situation immediately reverses itself with your payment. If you have a critical credit transaction in process, you may wish to pay your statement immediately upon receipt.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 3:57 PM
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