Personally I think you should be more concerned with the bigger picture but understanding payment timing will give you a better understanding of the credit reporting process.

Using your card every month and paying off your credit every month will not necessarily show a zero balance every month.

Credit card companies report balances owed on the date they generate your monthly statement. Simply paying off the balance a couple of days before the statement generating date will do the trick. Do realize that the statement reporting date is separate from the monthly due date. I think that is where the confusion takes place. Call up your creditor and ask them what the date the statement is generated every month. You should simply pay the balance a couple of days before that date. So if the due date is 1st of the month and the statement generating date is the 15th simply pay off the balance on the, say, 11th. That way you can use the card and still show a zero balance, best of both worlds!

This can also be used for business credit vendor reporting. You might want to “reverse” the payments. Creditors looking at your business reports usually want to see a higher balance with certain vendors, which will show that the company has enough activity with vendors (among other things). The creditors also like to see repeat business. Now, if you have a minimum amounts to spend, timing your payments can report the maximum amount. For example, you can get credit from Seton. Seton is usually very easy to get credit from (credit to purchase only from them). Now Seton has a net 10 days credit which means that you have 10 days to pay. Seton like most others report to Dun & Bradstreet at the end of the month. You can buy something on like the 25th, have it reflected on your business credit report on the 1st (end of month – start of next month) and pay it off by the 5th (net 10 days) of the month. That way you have it reflected on D&B and still paid within the allotted credit time, net 10 days.

These are the little things that can give you optimum use of your credit and give you better control over credit reporting. You would be surprised how understanding this can help you in polishing out the credit repairing/building process.

Aimanzul

http://www.ucc-1credit.com/articles_1

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