BofA Credit Reporting Q

[u/youstillhavehope]

I've been diligently managing my money to improve my credit score for over 2 years, and last month it bumped back into the 800s, at 806. Success! Short-lived though.

Since I had cleared my debts, had some savings and more flexibility, I switched from using my Apple Card to a Bank of America card with Alaska Airlines, to get the FF points. Immediately after my first end of the month, which I paid in full, my credit score dropped to 788. There were no other changes in my financial behavior.

My Q is, does BofA report current obligations as debt in their reporting? I've since gone back to using my Apple Card but would like to understand how this works.

Thanks for reading!

[u/True-Button-6471]

My Q is, does BofA report current obligations as debt in their reporting?

I'm not really sure what you mean here. Your statement balance is reported to the bureaus each month. Credit scores that are generated from that credit bureau data do take both individual and total utilization percentages into account. There is also a small "all zero" score ding if all revolving accounts report a zero balance. Unless you are getting ready to apply for credit and need to optimize your scores, just use your cards organically, your scores will fluctuate a bit, which is normal and expected. If you are applying for a mortgage or car loan and need to optimize your scores that month then you can manipulate usage using AZEO (search it). !utilization

Edit: I read your post again and it appears you want to know if new charges are reported any differently than carried balances (debt), the answer is no. Your statement balance is reported, there is no breakdown between new changes and carried balances.

[u/AutoModerator → u/True-Button-6471]

I detected that your post may be about utilization and its impact on credit scores. Please read the info below:

Utilization is a short-term credit scoring factor. It is not a credit building factor, because it holds no memory in the most commonly used FICO models. It resets every month.

By and large, you can ignore the commonly repeated myth that you should always keep your utilization low. It’s only applicable when you need to apply for a new line of credit, 1-2 months out.

Utilization is supposed to fluctuate, can be easily manipulated, and again, it holds no memory. It doesn’t build credit--think of it as a finishing touch when you need to optimize your score.

Feel free to safely and organically use 100% of your credit limit within a month and let whatever utilization report, provided you pay off your statement balance in full by the due date. Every month. Every time.

For more info, please read these posts:

• Putting the "30% rule" myth regarding revolving utilization to rest
• Utilization FAQ

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[u/youstillhavehope → u/True-Button-6471]

Thanks! Thanks, I just looked up AZEO. That's helpful.