Understanding credit card balances

crystal_pixie_2

Hi,

Hoping for some advice before I start complaining!

I had a notification from Experian that there had been a change in my report - so I logged on and found that Lloyds had updated my credit card balance - no issue with that but Experian have stated that I am using more of my revolving credit.

A little confused I went to check the balance with my statements. So August I put on the card £240 and paid it off. The September I spent £380 and did the same. However, the balance on the card says £641 which just doesn't add up.

I have to admit to being a bit miffed about this. I am presuming there must be an overlap with the statements as I clear the balance every month by direct debit.

What I find frustrating is the Experian are very quick to lower your rating but very very slow at increasing it. I cleared a large balance with NRAM at the beginning of September and it is still not showing on my report.

Ok rant over - do have grounds to dispute this amount on the grounds it is affecting my credit rating and it is clearly a mistake?

Has anyone else experienced this? Thanks for reading...

CLAPTON

crystal_pixie wrote: »

Hi,

Hoping for some advice before I start complaining!

I had a notification from Experian that there had been a change in my report - so I logged on and found that Lloyds had updated my credit card balance - no issue with that but Experian have stated that I am using more of my revolving credit.

A little confused I went to check the balance with my statements. So August I put on the card £240 and paid it off. The September I spent £380 and did the same. However, the balance on the card says £641 which just doesn't add up.

I have to admit to being a bit miffed about this. I am presuming there must be an overlap with the statements as I clear the balance every month by direct debit.

What I find frustrating is the Experian are very quick to lower your rating but very very slow at increasing it. I cleared a large balance with NRAM at the beginning of September and it is still not showing on my report.

Ok rant over - do have grounds to dispute this amount on the grounds it is affecting my credit rating and it is clearly a mistake?

Has anyone else experienced this? Thanks for reading...

rating are meaningless


when you apply for credit the potential lender will look at the entries on your credit files, and those on your application form etc and form a judgment about you


they don't see or care about the experians 'credit score'

crystal_pixie_2

Thanks for the reply Clapton.

I am not after any new credit I just want my file updated correctly. At the moment I can't see how they came up with that figure.

crystal_pixie_2

I am very aware the score is meaningless but I checked and using more of the credit does impact your credit rating.

After a few issues with Lloyds in the past I keep a close eye on my report and anything that may impact it.

Hope this clarifies things.

CLAPTON

crystal_pixie wrote: »

I am very aware the score is meaningless but I checked and using more of the credit does impact your credit rating.

After a few issues with Lloyds in the past I keep a close eye on my report and anything that may impact it.

Hope this clarifies things.

what ever did you check?

R34GTT

I don't think the OP is overly concerned about the score, more the fact that the balances appearing on the credit report do not correspond to the historic balances on their credit card accounts. I too have seen the balances for various credit accounts not tally up to statement balances and it's frustrating that the updates to the report are not monthly.

Also the OP is correct in saying that using more available credit will impact how lenders assess them for credit as this is one factor that is considered in credit applications by pretty much all lenders.

Also I wouldn't say the score is completely meaningless as the scorecards used by lenders are often derived from those written by Experian, the lenders then have it tailored to their own risk appetite and to include other factors such as income.

I agree the score shouldn't be assumed to be a guarantee of credit worthiness but it can be a rough guide as to how you may be perceived by lenders. It is however not worth paying for in my opinion.

crystal_pixie_2

R34GTT - you have it in a nutshell.

As of today I am not needing any more credit but I am mindful that may not be the case tomorrow - hence I try and keep my report up to date and will report any anomolies.

This change of reporting (I checked and it does seem that Lloyds reported later this month) has had an impact and I haven't experienced this anomolie before.

R35GTT - did you report the anomolie on your report? I realise that I can wait it out for another month and I have stopped using this credit card for the time being. This hopefully should reset the rating - but if I don't report this then it isn't highlighted to Lloyds that there could be an issue?

R34GTT

crystal_pixie, I've never reported it as I think it has always been this way, different lenders update at different intervals and the balance some lenders report may not be the statement balance and they clearly round up the balances in any case.

Just wait and it will update eventually. Also don't worry about the score too much, especially if you're not applying for credit.

SnowTiger

If it worries you that much complain to the card issuer.

Your credit report shows that you borrowed £641 and paid it back. As a lender I would see that as a positive.

JimmyTheWig

What's your credit limit on that card?

When did you make the purchases, when was the statement date and when did you pay the statement balance?

For example, spend £240 through September.
30th September statement shows £240 owing.
Spend £380 1st October.
7th October pay £240 statement balance.

As at 3rd October you will owe them £620.
If that's the day that they report to the agency then that's the figure they must report as your current balance. Anything else would be factually wrong.

Also worth noting that if your credit limit had been £500 then you would have exceeded your limit, even though in no month did you spend more than £500 and you always paid in full.

From your figures I don't see where they got £641 from, though.
Did you spend more than £380 then get a refund, maybe?

Thrugelmir

crystal_pixie wrote: »

Ok rant over - do have grounds to dispute this amount on the grounds it is affecting my credit rating and it is clearly a mistake?

Why it it affecting your credit rating? Experian doesn't lend money. Lenders will use their own matrix to decide whether they will will do business or not with you.

If the statement balance is being repaid in full. Then you are simply wasting your time along with everybody elses.