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mdo74

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I pay my credit card in full every month autopay but that's not good enough!?
I always pay my credit card balance in full every month and never pay any interest or charges. However, given the info in Credit Karma, I now have a calendar reminder to logon my bank just after the auto pay has been taken and before the statement date and I pay off the balance in full. There is about a 5 day window to do this. Even though the statement has not even arrived yet for that spending, I pay it off. My goal is to have a zero balance on my credit card statement. I could not believe it, but this actually worked. My credit score jumped up by around 50 points.

Why isn't it based on the statement balance that has not been paid off each month (if any) and interest is being charged on? That would seem logical. Most people think (reasonably) that paying off their credit card in full every month using auto pay is pretty good going and the best they can do. But that doesn't appear to be enough.

To labor the point, I paid off my balance in full this month 2 days before the statement was generated. A few days earlier I had spent one item $1,600 and that hadn't quite hit my daily balance. It hit the next day and got included on my statement balance. I won't pay any interest on it as the next auto-pay in 3 weeks will pay off the balance in full. But what's ridiculous is that my credit score went down! Because 1,600 is over 10% of the 10,000 credit limit and puts the "balance" in the next lower category. So I am being penalized for not checked on the very day before the statement is generated and paying it off. I just can't believe the system is so sensitive to that. I'm even considering over-paying the credit card to ensure that doesn't happen again! i.e. hold a negative balance on the credit card.

It makes no sense to me why the system is like this. Can someone please explain?

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