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Please help to understand: is it better to reduce you cc balance the day before due?


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If you pay off or down your outstanding balance the day before the due date, do they report to CRA's the lower amount, then if you just pay the due date? Or, an other way to ask question: is it clearly an advantage to reduce the balance prior to due date ????( not from the viewpoint of saving finance charges, but only from viewpoint of improving your credit score).

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Yes in my opinion paying before the OC's reporting date will help your FICO score. If they report on the 21st then pay before that date. You would have to contact each of your creditors to find out when they report to the CRA's. I know with my HSBC card, my cycle ends on the 8th each month, but they report the balance the last day of the month to the CRA's.

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Thank you for response. I was just asking from viewpoint when the CRA's report the balance on the day of closing , or is it better to pay just prior to the closing so they report a lower balance.

You should time your payments to avoid finance charges...and "lates", although a small amount of "lates" actually improves your sucker score.
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Fizzle: thank you. Did not kow that cc companies do not report as of the closing date. So they could report any day in between? But usually only once per month?????????

Yes in my opinion paying before the OC's reporting date will help your FICO score. If they report on the 21st then pay before that date. You would have to contact each of your creditors to find out when they report to the CRA's. I know with my HSBC card, my cycle ends on the 8th each month, but they report the balance the last day of the month to the CRA's.
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Fizzle: thank you. Did not kow that cc companies do not report as of the closing date. So they could report any day in between? But usually only once per month?????????
Exactly. When they report has nothing to do with YOUR due date. Like I said, pay to avoid the finance charges. Don't worry about the reporting date.
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Fizzle and Willing are absolutely correct. I know when my CCs report so I always pay down my cards just before they report. For some of them it is before the due date, and others it is after. You might be able to get the exact date from your TC account, otherwise give the CC a call and get the report date from them. Before PM started going haywire, I was able to get my report dates for all my accounts with them.

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And does that result in showing by CRA report purposes an amount net of the payments you just made 2 days prior to do date?

I PIF each month about two days before each of my CC's reports to the CRA's. :)
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And does that result in showing by CRA report purposes an amount net of the payments you just made 2 days prior to do date?

Yes it does, I always make sure I at least make my minimum payment if I can't pay in full. Then I make sure the balance is 0 by paying up to 1 day before my CCs report. Right now, all but 2 of my cards are reporting a 0 balance using this method.

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