Q: Why does my credit report show balances on accounts that I'm paying off in full each month?
A: Credit card issuers report outstanding balances on your last billing statement to the credit bureaus
. So whether you pay your balance off each month or not, an account balance on your credit is usually the balance displayed on your last statement. Even if you pay off your balance each month, any charges made since your last payment becomes the new balance reported to the credit bureau the following month.
To get a zero balance for a particular credit card account, pay the last billed balance in full and then don't charge anything on that account for the next month. You should see a zero balance on your next statement, and it should appear as a zero balance on your updated credit report.
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