When is my credit utilization # reported?

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wiivile
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When is my credit utilization # reported?

Postby wiivile » Mon Aug 12, 2013 9:53 pm

Does anyone know when my credit utilization # that is used to calculate my credit score is reported to the credit agencies? I think it makes a big difference when, during the month, it is reported.

For example, say if I have a $4,000 a credit limit and my statement period that ended on July 19th shows a $1,000 balance. However, my automatic payment doesn't kick in until the payment due date on August 16th. If my credit utilization number is reported before the payment due date -- on August 15th, then, for example -- it will show the $1,000 prior month balance plus say another $900 from the current month (around $1,900 balance). If it is reported on August 17th, after the payment is made, it would only show the current month balance (around $900). This is a big difference.. which is the number that is reported? Is it just your statement balance every month?
    Chase Sapphire Preferred Visa Signature: 11/2013, $15,000 CL
    Chase Freedom Visa: 11/2009, $4,700 CL
    U.S. Bank Cash+ Visa Signature: 11/2013, $11,200 CL


flan
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Postby flan » Mon Aug 12, 2013 10:38 pm

wiivile wrote:Does anyone know when my credit utilization # that is used to calculate my credit score is reported to the credit agencies? I think it makes a big difference when, during the month, it is reported.


Most banks report the statement balance, shortly after the statement is issued.

A few (US Bank, last I knew, for instance) report on a particular day. ( US Bank is the first of the month, I think.). A credit union I used to bank with reported the statement balance, but did it once a month, which meant if you closed the day before they did that, it would be fast, and if you closed the day after, it would be a month behind. There are probably other weird things that happen, a relic of ancient computer systems, or the thinking that they still send the data in on physical tapes.

It's a perfectly reasonable thing to ask the lender, if you care. (you can also use one of the free credit monitoring sites, like credit karma or credit seasme, to see when they get updated.)

Daniel
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Postby Daniel » Tue Aug 13, 2013 10:43 am

wiivile wrote:Does anyone know when my credit utilization # that is used to calculate my credit score is reported to the credit agencies? I think it makes a big difference when, during the month, it is reported.

For example, say if I have a $4,000 a credit limit and my statement period that ended on July 19th shows a $1,000 balance. However, my automatic payment doesn't kick in until the payment due date on August 16th. If my credit utilization number is reported before the payment due date -- on August 15th, then, for example -- it will show the $1,000 prior month balance plus say another $900 from the current month (around $1,900 balance). If it is reported on August 17th, after the payment is made, it would only show the current month balance (around $900). This is a big difference.. which is the number that is reported? Is it just your statement balance every month?


In addition to what flan said, your utilization is based on your statement balance in most cases. If your statement balance says you owe $1k, then that is what gets reported on your tradeline. When you check your report 2 weeks later after spending another $900, your next statement has not cut yet, so the utilization should still be based on the $1k number.

If you aren't planning on applying for any credit products in the next 3-6 months, I wouldn't worry about micromanaging your utilization. In my opinion, one is better off focusing on increasing their net worth rather than micromanaging the utilization outside the month's leading up to a loan or mortgage app.

takeshi
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Postby takeshi » Tue Aug 13, 2013 2:49 pm

wiivile wrote:For example, say if I have a $4,000 a credit limit and my statement period that ended on July 19th shows a $1,000 balance. However, my automatic payment doesn't kick in until the payment due date on August 16th. If my credit utilization number is reported before the payment due date -- on August 15th, then, for example -- it will show the $1,000 prior month balance plus say another $900 from the current month (around $1,900 balance). If it is reported on August 17th, after the payment is made, it would only show the current month balance (around $900). This is a big difference.. which is the number that is reported? Is it just your statement balance every month?

With most cards using your example the statement balance of $1,000 would be reported to the CRA on or shortly after July 19th. Any additional amount added to the balance would be part of the next statement balance reported at the close of the next statement. If you wanted to reduce utilization you would have had to pay down the balance prior to July 19th.

JSS3
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Postby JSS3 » Fri Aug 16, 2013 7:30 am

Pay down to your desired balance by your due date. For example, if your due date is the 16th---pay multiple times until that point. That way when your balance is collected 3 days later(19th), and reported, you will have lowered your utilization.
(1/13) Fingerhut - $1,100
(2/13) Capital One Quicksilver- $3,500
(3/13) Capital One Quicksilver One- $750 ($19 AF)
(8/13) Discover IT- $2,000
(8/13) Citi Dividend- $1,200
(8/13) Chase Slate- $2,500
(9/13) Chase Amazon Visa Sig - $4,000
(9/13) Victoria Secret- $750
(9/13) Paypal Extras Mastercard- $3,000
(9/13)] MyPoints Visa- $1,500
(10/13)Walmart Discover- 3,000



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