Billing Cycle quesiton

[TheFate]

Capital One Quicksilver Billing Cycle

Generates on the: 5th of every month

Ends on the: 4th of every month

Due Date: 2nd of every month

The online rep said whatever transactions that you'll make between 06/05/2014 to 07/04/2014 will be due on 08/02/2014 

I always thought you need to pay your balance off in full every month to avoid interest charges? Or even 25 days? Does this make sense can someone clarify?

Also what would be the best way on charging/paying this account every month to benefit the most? I would like it to report as its my main CC

[Bman70]

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@TheFate wrote:

Capital One Quicksilver Billing Cycle

Generates on the: 5th of every month

Ends on the: 4th of every month

Due Date: 2nd of every month

The online rep said whatever transactions that you'll make between 06/05/2014 to 07/04/2014 will be due on 08/02/2014 

I always thought you need to pay your balance off in full every month to avoid interest charges? Or even 25 days? Does this make sense can someone clarify?

Also what would be the best way on charging/paying this account every month to benefit the most? I would like it to report as its my main CC

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OK so your statement cuts on the 4th, and you have a grace period until the 2nd of the month after to pay the New Balance. Interest is charged if you don't pay the New Balance in total. However, you can pay the New Balance in several lumps or one lump, while charging new charges. You don't have to pay in full, just whatever the last statement balance says. To avoid interest. Sometimes people confuse statement balance vs. actual balance. 

[Shae123]

I'd like to piggyback onto that question...

Will the transactions that occur AFTER the statement generates be reported to the credit report reporting agencies? or is that part of the next statement period?

[Bman70]

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@Shae123 wrote:

I'd like to piggyback onto that question...

Will the transactions that occur AFTER the statement generates be reported to the credit report reporting agencies? or is that part of the next statement period?

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Good question. The agencies only get one peek at your cards per month, and that's via the reported statement. They have no idea what's going on in between statements. So it's like musical chairs - engage in whatever mayhem you want as long as you look good on statement day.  

[Shae123]

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@Bman70 wrote:

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@Shae123 wrote:

I'd like to piggyback onto that question...

Will the transactions that occur AFTER the statement generates be reported to the credit report reporting agencies? or is that part of the next statement period?

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Good question. The agencies only get one peek at your cards per month, and that's via the reported statement. They have no idea what's going on in between statements. So it's like musical chairs - engage in whatever mayhem you want as long as you look good on statement day.  

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Great!  I know some companies report a few days after, so I didnt't know if what happened in beetween would be reported... Thanks! 

[lg8302ch]

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@Shae123 wrote:

I'd like to piggyback onto that question...

Will the transactions that occur AFTER the statement generates be reported to the credit report reporting agencies? or is that part of the next statement period?

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Yes. All of my cards below only report the statement balance and the new charges will be on the next statement only. So if your statement is cut with 0 balance and your current balance is 1K only the 0 balance will be reported. Only single exception I had was with Discover when I tried to report 0 balance (paid the pending amounts and had a negative amount on the account) on a week end. Discover reported some random amounts but all other cards worked great. I normally do not report 0 balance only twice a year and just before an app. So next time I will do this mission I will choose Discover as card to report the balance. All other cards work just fine.

@OP... looks to me that the info is given correctly by Cap1 rep.  My statement cut date is on the 7th... my due date is on the 4th and whatever I charge after the 06/07 will post on next statement 07/07 and becomes due 08/04...no interest to be paid like this. 

[TheFate]

Well its odd, I PIF on 05/28 and my statement closed on the 06/04 at $0 yet my credit report says Capital One reported a $0 balance on 06/01?

I read its best to let the credit card report a balance between 1-9% and reporting a zero balance is not good. Not sure how much truth that holds tho because it makes entirely no sense

[leegreen]

For the purpose of your FICO score let one cc report 1-9% as this will maximize you util. If they all report 0 then you could have cut them all up and paid them off with no spending controll. The score likes to see responsible usage not no usage.

[TheFate]

So I should only let one card report and let the others just report $0?

[takeshi74]

For ideal scoring, yes.  Howver, unless you're applying for something it's probably not worth the hassle.  Just keep it under 30%.

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@TheFate wrote:

The online rep said whatever transactions that you'll make between 06/05/2014 to 07/04/2014 will be due on 08/02/2014 

I always thought you need to pay your balance off in full every month to avoid interest charges? Or even 25 days? Does this make sense can someone clarify?

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The two don't contradict each other.  Pay in full by your due date each cycle and you won't pay interest on purchases.  Cash generally accrues interest from the date of the transaction.

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@TheFate wrote:

I read its best to let the credit card report a balance between 1-9% and reporting a zero balance is not good. Not sure how much truth that holds tho because it makes entirely no sense

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It makes sense if you think about it.  0 indicates no usage.  You can verify for yourself.  Test out several different utilization levels and see how they impact your FICO's.