topic Re: Billing Cycle quesiton in Credit Cards

Billing Cycle quesiton

TheFate — Sat, 28 Jun 2014 05:57:53 GMT

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

Re: Billing Cycle quesiton

Bman70 — Sat, 28 Jun 2014 06:02:28 GMT

@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

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.

Re: Billing Cycle quesiton

Shae123 — Sat, 28 Jun 2014 07:33:54 GMT

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?

Re: Billing Cycle quesiton

Bman70 — Sat, 28 Jun 2014 07:43:28 GMT

@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?

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.

Re: Billing Cycle quesiton

Shae123 — Sat, 28 Jun 2014 07:59:28 GMT

@Bman70 wrote:
@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?
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.

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

Re: Billing Cycle quesiton

lg8302ch — Sat, 28 Jun 2014 08:00:21 GMT

@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?

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.

Re: Billing Cycle quesiton

TheFate — Sat, 28 Jun 2014 23:32:29 GMT

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

Re: Billing Cycle quesiton

leegreen — Sun, 29 Jun 2014 02:03:52 GMT

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.

Re: Billing Cycle quesiton

TheFate — Sun, 29 Jun 2014 03:16:07 GMT

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

Re: Billing Cycle quesiton

takeshi74 — Sun, 29 Jun 2014 03:40:31 GMT

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

@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?

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.

@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

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.

Re: Billing Cycle quesiton

TheFate — Sun, 29 Jun 2014 04:18:29 GMT

@ Takeshi No offense but it also sounds contradicting what you just said

You said for Ideal scoring its best to let only one card report then at the end of your reply you said letting a reporting of $0 IS bad because it shows no usage?

Re: Billing Cycle quesiton

lg8302ch — Sun, 29 Jun 2014 10:34:18 GMT

@TheFate wrote:
@ Takeshi No offense but it also sounds contradicting what you just said

You said for Ideal scoring its best to let only one card report then at the end of your reply you said letting a reporting of $0 IS bad because it shows no usage?

If you want your profile to look in the best way possible (only before an app) you pay your cards before statement cut and have 0 balance report on all but 1 card. That 1 card you let report up to 9% and this will get your scores in best position ... for the period that you do not intend to apply for anything you just pay your cards after the statement cut date and before the due date and this shows activity but might not give you maximum points on Fico . All accounts to 0 balance will make you loose some points as well as this is what Fico does not like. Do not stress with this 0 balance reporting thing if you do not plan to apply for something. There is no need that you scores have to be in best possible position all the time. On the contrary if you do 0 balance reporting with certain lenders you will not get CLI or auto CLIs ...so keep that in mind as well.

Re: Billing Cycle quesiton

TheFate — Sun, 29 Jun 2014 23:40:41 GMT

@lg8302ch wrote:
@TheFate wrote:
@ Takeshi No offense but it also sounds contradicting what you just said

You said for Ideal scoring its best to let only one card report then at the end of your reply you said letting a reporting of $0 IS bad because it shows no usage?

If you want your profile to look in the best way possible (only before an app) you pay your cards before statement cut and have 0 balance report on all but 1 card. That 1 card you let report up to 9% and this will get your scores in best position ... for the period that you do not intend to apply for anything you just pay your cards after the statement cut date and before the due date and this shows activity but might not give you maximum points on Fico . All accounts to 0 balance will make you loose some points as well as this is what Fico does not like. Do not stress with this 0 balance reporting thing if you do not plan to apply for something. There is no need that you scores have to be in best possible position all the time. On the contrary if you do 0 balance reporting with certain lenders you will not get CLI or auto CLIs ...so keep that in mind as well.

I honestly beleive lenders like to see revolving balances on a month to month basis

But thank you for claifying I will keep that in mind just before apping. Maybe do that 2 months prior just to be sure

Re: Billing Cycle quesiton

bdhu2001 — Sun, 29 Jun 2014 23:51:05 GMT

@lg8302ch wrote:
@TheFate wrote:
@ Takeshi No offense but it also sounds contradicting what you just said

You said for Ideal scoring its best to let only one card report then at the end of your reply you said letting a reporting of $0 IS bad because it shows no usage?

If you want your profile to look in the best way possible (only before an app) you pay your cards before statement cut and have 0 balance report on all but 1 card. That 1 card you let report up to 9% and this will get your scores in best position ... for the period that you do not intend to apply for anything you just pay your cards after the statement cut date and before the due date and this shows activity but might not give you maximum points on Fico . All accounts to 0 balance will make you loose some points as well as this is what Fico does not like. Do not stress with this 0 balance reporting thing if you do not plan to apply for something. There is no need that you scores have to be in best possible position all the time. On the contrary if you do 0 balance reporting with certain lenders you will not get CLI or auto CLIs ...so keep that in mind as well.

Have we tested this with the new FICO 08 as opposed to FICO 04?