Consumer complaint received 2025-08-21 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers — Confusing or misleading advertising about the credit card
Company: Self Financial Inc.
State: FL

Complaint narrative:
I opened a XXXX XXXX Credit Card account on XX/XX/year>, with a credit limit of {$1200.00}. The card did not arrive until 10 days later, and I did not activate it until XX/XX/year>. On XX/XX/year> only 11 days after activation XXXX reported a balance of approximately {$370.00} ( 31 % utilization ) to the credit bureaus. 

At the time this report was made, I had not yet received a billing statement. My XXXX account dashboard showed {$0.00} due, and my first payment due date was not scheduled until XX/XX/year>. Despite this, XXXX reported utilization before I had any chance to make a payment, without giving me notice that reporting would occur before the first statement. 

In response to my inquiry, XXXX stated that the XXXX XXXX does not say reporting begins after the due date or activation but 21 days from application date, and that it only states they normally report to credit reporting agencies each month. They claimed that reporting my balance on XX/XX/year>, was accurate and compliant with the Fair Credit Reporting Act ( FCRA ). 

I believe this practice is predatory. Reporting so soon after activation and before a billing statement is issued deprives consumers of a fair opportunity to pay down balances before they are reported. This is especially harmful given that XXXX advertises this card as a credit-building tool. Reporting utilization within days of activation, without disclosing that this will occur, sets consumers up for unnecessary damage to their credit scores. 

While the balance itself may have been accurate, the timing of the report created a misleading picture of my repayment ability. The FCRA requires information furnished to be not only accurate, but also fair and not misleading. By reporting 31 % utilization before the first billing cycle, XXXX furnished information in a way that misrepresents my payment behavior and ability to responsibly manage credit. 

Furthermore, XXXX never disclosed upfront that they would report to the credit bureaus on the XXXX of each month, including in the first cycle before a due date or statement was issued. This lack of notice is a material omission, as it prevents consumers from managing their accounts properly and directly undermines the purpose of using the card to build credit. 

For resolution, I request that the XX/XX/XXXX report be updated or removed, since it was furnished before I had an opportunity to make a payment. I also request that XXXX be required to provide clear and transparent disclosures about their exact reporting practices, including the fact that they report on the XXXX of each month regardless of the billing cycle. Finally, I ask that XXXX change its reporting policy to align initial reporting with the first billing statement, to prevent consumers from being penalized before they have had a fair chance to pay. 

I am prepared to provide documentation, including a screenshot of my XXXX account dashboard showing {$0.00} due as of XX/XX/year>, my credit report showing 31 % utilization reported on the same date, and proof that the card was not activated until XX/XX/year>.

Company response to consumer: Closed with explanation