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Credit Card Balance Reporting Question

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Hello, I filed for BK in 2013 and have since rebuilt my credit and have a CitiBank Mastercard with a 24K limit. I use the card for business expenses and for most personal purchases and my monthly charges typically are around 12K. I always pay off the card within 5 days of the statement closing (I have never paid any interest), but I noticed that my credit report always shows that high balance to the extent that my credit score dropped like 23 points due to the high balance, which I again always pay off within 5 days of the statement closing. Do I have to pay the card off BEFORE the statement closes to ensure I get a zero balance to reflect on my credit report?

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Which credit score?  If that's Kredit Carma or something similar, it isn't even a real score.


Forget about high balance.  Citi reports your statement balance monthly.  Dividing that balance by the credit limit on that card results in the utilization ratio for that card for FICO scoring purposes.


Note that FICO looks at individual card utilization (as described above), total utilization across all cards, AND the number of cards reporting a balance.


Do you have other credit cards, or is this your only credit card? 


Side notes: 


Some issuers like US Bank report your account balance at the end of the month rather than your statement balance, but your "high balance" is still irrelevant for FICO scoring.


23 points isn't a meaningful swing.  



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Well, you can prepay all or a portion of your upcoming statement to reduce what's reported to the CRA's each month.  Ideally, you want to get your credit score into a range where a 20 pt swing simply isn't a concern (say 760+).  Once your BK drops in 2023, perhaps that's on the horizon.


In the interim, given your current charge pattern, I'd suggest seeking a credit limit increase to at least $35k with Citi.  If you have a well established account, free of delinquency, and a pattern of charging $10k+ per month, approval should be very likely.  With the increase in place, you're less likely to approach 50% utilization on the account, which is a bit of a score killer.



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If a statement cuts with a balance, you can reasonably presume that the balance will be reported to each of the bureaus to whom the issuer reports.  The only way to avoid a balance reporting is to have no balance when the statement cuts, and even that is not an absolute rule given mid-cycle reporting used by some issuers. 


It makes no sense to pay things off the first few days after the statement cuts provided you had no revolved balance.  As long as the statement balance is paid in full by the due date, you should be good to go without accumulating interest. 

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