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Question By
TheyreOutToGetMe

7 Contributions
4 People Helped
not allowing me to pay balance but still impacts credit utilization
Hi all, new to the US (from europe), so obviously the whole credit scoring thing is a new game on me :). Two things are confounding me right now:
1) I have a credit line of $5000 with a credit union credit card. Yet that card doesn't show up on most reports - and I have over 7 months history of spend on it
2) One thing that hit my score hard this month is balance on a card (over 50%). I lost 49 points as a result. HOWEVER... and this is the annoying part... Those amounts have not cleared yet on the card, so I can't even pay them down. Surely this is inaccurate/incorrect reporting on the credit card's side? I mean, to put it differently, surely they can't report a balance that I am prevented by themselves from doing anything about? This seems totally opposite to the point of credit scoring... or am I missing something?

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Top Contributor
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I think what your missing

is the time that Credit Reports take to get updated.  It can take 30-45 days for things to get reported across all 4 of the credit reporting companies.  So a payment or purchase you make may not be up to date on all your reports.   Info on CK is updated weekly and if your accounts are "connected" they will update when ever you log in.  But the info you see is probably not what is actually reported on your credit report, since they actually update your report just once a month or when there is a "Hard Inquiry" 

You may want to check with the credit union about weather they limit "additional Payments" in a months time, But as far as I know, None of my Credit Cards limit how many payments I can make to pay down cards.   To be fair though, Making additional payments to pay down cards before they are reported can acctually work against you as far as scoring goes.  Creditors want to see utilization and then pay off. 

Key take away point: Consider Your credit info to generally be 30 days behind and the actions you take today will be reflected in a month.    

Reply by
TheyreOutToGetMe

7 Contributions
4 People Helped

Thanks for your response :)

The thing is, it's not that I want to make additional payments - nor am I worried about not having funds to pay in time before the amount hits.  What's hurting is I am actually prevented from making the payment altogether because it hasn't cleared.  Eg, I have five purchases totalling $125, only $20 has cleared.  The max my credit card company allows me to pay is $25, since they allow a few % over the current amount.  I pay this amount well within time.  However, they report my used credit as $105, the amount I didn't pay onto the card because they simply didn't allow me to.

The part that's confusing me isn't that they report on the amount - it's right that they do so.  But the fact that they can report an amount that isn't even clear, that worries me.  Often if you book a hotel, for eg, they put a hold (uncleared amount that cancel before it hits and will never clear) of the whole amount plus sundries.  Could be $1000, when the total cost comes to $750.  In my case, not only will I be punished for using $1000, I'll potentially be punished for using $1750, depending on when the hotel decides to remove it's bar.

It's like me charging someone rent to borrow my car, even though I locked it up in my garage and they don't have the key.  Seems like a scam to me!

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