Balance paid in full, but decreasing my credit score?

[Hennebou]

Hi everyone,

I know this topic isn’t 100% related to earning avios etc., but it is about the Barclaycard.

Every month, I pay back my balance in full, automatically, via direct debit. However, when checking my credit report with Experian, I have noticed that it shows me as currently having debt (and therefore reducing my credit score), which seems to be equal to my Barclaycard balance from a couple of months ago (which I paid in full and on time). To clarify, I have also never been charged any interest by barclaycard — rightfully so, because I always pay off my balance in full, and therefore do not take on debt!

This is only happening with my barclaycard, I have never had this issue before with my amex.

Does anyone know what is happened and/or why? This is really annoying. It happens every month like clockwork. I suspect some IT issue of some kind in how they transmit the information to Experian…

Thank you!

[Reney]

Probably something to do with what data they send or the date they are sent. It sounds like they might be sending the statement amount. If you make a payment before the statement is generated that may solve the problem.

[NorthernLass]

Does anyone actually take any notice of Experian?

[Wiseoldman]

Reney wrote:

Probably something to do with what data they send or the date they are sent. It sounds like they might be sending the statement amount. If you make a payment before the statement is generated that may solve the problem.

This is likely to be the case. Barclays IT is old!

[John]

If you pay on time you don’t need to worry about anything. Experian doesn’t issue credit cards or mortgages – and if you are not imminently intending to borrow money it matters even less.

[TooPoorToBeHere]

Yup the lender will care about
* Total balances held
* Available undrawn credit
* Payment history

You can’t do much about the total balance number – which is a momentary snapshot – being incorrect, but it is somewhat helpful to close down or reduce credit facilities that you have no need for.

Key of course is having and maintaining a perfect payment history on all the accounts – no missed/late.

[sturgeon]

Agreed. Don’t worry about this credit ‘score’. If you’re really paranoid maybe just pay off the card as you go so there’s never a balance.

[SteveJ]

TooPoorToBeHere wrote:

it is somewhat helpful to close down or reduce credit facilities that you have no need for

Got to be careful with this one, especially if you’re one of many stung by a low ball Barclaycard credit limit, closing other facilities can mean your overall credit utilisation as a percentage can look high, which is unattractive to lenders. So it’s a balancing act!

Edit: 1,000th post, yay me!

[gill321]

I think Barclays are slow to report.
My Amex and barclaycard have same statement date. On looking yesterday at my latest score /report – Amex is May 24 statement balance whereas Barclaycard is April 24 statement balance.