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Personal Finances / Buying or Selling a Home


Subject:  Re: Debt-to-income ratio if self-employed Date:  2/12/2013  11:55 AM
Author:  foo1bar Number:  124738 of 128887

Paying off once or twice per week won't help because you have no control over your creditors' reporting practices.

I think it has a high likelyhood of helping keep the balance low- and from what I can see it won't hurt anything. (other than costing extra time to check the balance and make the payment, and having on average a little less $ in checking account)

Depending on when the bank reports to the credit bureau, and when the OP pays, the OP might normally have 2, 3, 4, 5, or 6 weeks worth of purchases. (worst case is they report the day before OP pays, and therefore it's all of the previous bill's purchases, plus 2 weeks worth of purchases since then.)
If instead the OP checks the balance weekly, and pays weekly, the largest the balance can be is just over 1 week's worth of purchases (1 week plus whatever time it takes to get the payment there)

In the past, I know that some banks will tell you when they report - so you could pay just a few days before they send their data to the bureaus.
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