Credit Card Billing Cycle Questions
Guest: nefertiti66
Post subject: Credit Card Billing Cycle Questions
Posted: Mon Aug 14, 2006 10:12 am
So i ended up getting the card (the original post was old and wished i would have seen all your responses earlier) i got a platinum- $500 limit
I activated the card on july 16th. made purchases of $400 (hoping to show on my report the 400). I checked my account online a few weeks later expecting an invoice to arrive, but none came. My account stated that i had a balance of 400$ but the "amount due" was $0. So, I called customer service.
The cs service rep told me that i did not currently owe anything.
(i want to use this card for necessities and pay it off monthly in full)
So... i asked the cs rep when i would start accruing interest.
She told me 25 days from the purchase!!
WHAT!??
The rep was an idiot and didnt understand what i was trying to ask let alone be able to answer it. (she put me on hold for over 5 minutes while she asked her supervisor.
Does this mean i need to pay each item off before 25 days is up!?
I thought that ther 25 day grace period was from the point of "balance due" date. If billing cycles are 30 days, why do they start accrruing interest after 25 days on each item?
I'm so confused! I've paid off the full amount even though it said it wasnt due yet and am planning on just leaving it in my underwear drawer and using it once a year to keep it active, unless i can get an answer that makes sense so i can avoid paying any interest to this crappy ALL HASSLE card
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hdporter
Credit Expert (100+ Posts)
Posted: Mon Aug 14, 2006 1:09 pm
Quote:
So i ended up getting the card i got a platinum- $500 limit
I activated the card on july 16th. made purchases of $400 (hoping to show on my report the 400). I checked my account online a few weeks later expecting an invoice to arrive, but none came. So, I called customer service.
The cs service rep told me that i did not currently owe anything.
So... i asked the cs rep when i would start accruing interest.
She told me 25 days from the purchase!!
Does this mean i need to pay each item off before 25 days is up!?
I thought that ther 25 day grace period was from the point of "balance due" date.
I'm so confused! I've paid off the full amount even though it said it wasnt due yet and am planning on just leaving it in my underwear drawer and using it once a year to keep it active, unless i can get an answer that makes sense so i can avoid paying any interest to this crappy ALL HASSLE card
The rep misstated the facts.
Interest doesn't begin accruing until 25 days after your statement is mailed (the 25 day period likely marks your due date as well). If you pay your statement in full by the 25th day, no interest will attach to your account (including any new charges posted since that statement).
It takes as much as 6 weeks after your card receipt for your first new account statement to be issued. Often (this may be true with C1), a bank doesn't report your account balance other than what's outstanding at the time your statement is issued. Thus, if you charge on the account but pay in advance of your statement, only the actual balance left at the time of that statement will show up with the credit bureaus in determining your "high balance" -- which some people try to bump up for their C1 account, since C1 doesn't report credit limits.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
stilltrying
Posted: Mon Aug 14, 2006 3:35 pm
hdporter wrote:
[...]
Of course, the whole stance on limit increases is simply bizarre. It can't even be said that they're conservative in doling out increases -- all indications are that they don't even perform the semblence of a review when a request (they just spiel out the "not eligible" line) and aren't actively seeking to improve business volume by automatically extending increases where credit history warrants, other than on an exception basis.
[...]
It seems Capital One's way of doing things is that once a customer is issued one of the "sub-prime" cards, then that card/that account is forever locked in to that "sub-prime" status. I feel that's basically what I was told when I asked ( a ) if my account will ever be eligible to be upgraded to one of these cards "for people with excellent credit", ( b ) if down the road the transaction fee for balance transfers could be permanently removed, ( c ) asked if the $ 10,000 cap on the maximum credit limit that I can be granted could be removed [The answer to a, b, and c was "no"]
It appears that Capital One understands extremely well how to profitably offer sub-prime cards:
Quote:
Quote:
"Massachusetts Courts Tilting Towards CA's, Small-claims proceedings ignore individuals rights"
The courts don't track the number of cases filed by debt collectors. But the Globe, after hand-counting cases in the state's computer system, interviewing numerous clerks and judges, and attending dozens of hearings, determined that at least 60 percent of all cases funneled through the civil courts are brought by professional collectors. One credit card firm, Capital One Financial Corp., filed more than 38,000 small-claims lawsuits against Massachusetts consumers in the last four years....
...At a cost of just $40 to file a lawsuit for any amount up to $2,000, debt collectors find a bargain in Massachusetts small claims. A victory in court lets them pursue a debt for up to 20 years, and earn 12 percent annual interest on it - a rate that's matched or exceeded in only five states. The Legislature hasn't adjusted that rate since the 1980s.
Quote:
"Capital One Shares Hammered on 2Q Results"
The company blamed the shortfall on fewer late fees in the U.S., as more credit card customers paid their bills on time, ...
article #1: "This is a Marketing Revolution"
article #2: "Getting all the Credit"
article #3: "Credit Card Revolutionary"
article #4: "Invested Interests"
Here is a quote from the article "Getting all the Credit":
"Capital One tries out different interest rates. It tests to see what happens if it tells customers the rates will rise after various numbers of months, or stay fixed."
Capital One's CEO Richard Fairbanks last year gained almost $250 million after exercising stock options:
http://www.usatoday.com/money/companies/management/2006-04-09-ceo-compensation-report_x.htm http://www.washingtonpost.com/wp-dyn/content/article/2006/03/24/AR2006032401830_pf.html
Last edited by stilltrying on Mon Aug 14, 2006 4:16 pm; edited 6 times in total
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: stilltrying
Posted: Mon Aug 14, 2006 3:43 pm
hdporter wrote:
Quote:
I'm sorry to hear about how the conversation went. FWIW, I had posted some information on some other options for getting a credit limit increase ...
Don't give up just yet.
Well, it's not a question of "giving up" ... more like "why bother?".
Well, I meant "don't give up" in the sense that if you want to pursue this, then check out the information that I referenced in my previous post.
But I understand what you meant in the other sense of "giving up": "why bother?". Even calling the "account specialist" department and the "executive" department isn't a guarantee. Last winter I spent a long time writing the most persuasive letter that I could about the kind of excellent customer that I've been and about why I would like to ask them to consider me for a credit limit increase. I faxed the letter to the executive office. There was nothing they could do to help me, they said.
I wish I coud push the rewind button on my life and give my four years of time and money to some other company than Capital One.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Tue Aug 15, 2006 11:04 am
A few quick comments...
nefertiti66, you've got it wrong. Online you see your current balance and amount due. But nothing is due until your statement is issued (ISSUED, Harry, not mailed--often the postmark is several days after the closing date of the statement) and, depending on the terms, you'll have a certain grace period before you get charged interest on the balance shown--NOT THE PURCHASE DATE ITSELF--which means you have to pay it off IN FULL by the payment due date on that statement. If your grace period is 25 days, as you were told, your payment due date is 25 days after the closing date on the statement. That's pretty good!
Cap1 is neither good nor bad in general. It's just another bank. Every major bank has happy customers and dissatisfied ones. Don't read too much into anyone's particular praise or complaint.
It IS true that Cap1 pulls hard credit inquiries from all three bureaus when you apply for credit. It's also true that for most products it offers, it does not allow what it calls "customer-initiated" requests for credit line increases. I don't know why people get bent out of shape by such a policy and take it as a personal attack. That's the policy. The CSRs can't change it. Some just tell you the policy straight out when you start talking about CLIs and are thought to be rude. Others listen to all your reasons why you deserve a CLI and then tell you the policy, and then you think there's something wrong with your particular credit.
I've got great credit and 3 Cap1 cards right now, with limits of $5,000 on one and $20,000 on the other two. I've NEVER gotten a CLI. I don't expect one.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: Credit Card Billing Cycle Questions
Posted: Mon Aug 14, 2006 10:12 am
So i ended up getting the card (the original post was old and wished i would have seen all your responses earlier) i got a platinum- $500 limit
I activated the card on july 16th. made purchases of $400 (hoping to show on my report the 400). I checked my account online a few weeks later expecting an invoice to arrive, but none came. My account stated that i had a balance of 400$ but the "amount due" was $0. So, I called customer service.
The cs service rep told me that i did not currently owe anything.
(i want to use this card for necessities and pay it off monthly in full)
So... i asked the cs rep when i would start accruing interest.
She told me 25 days from the purchase!!
WHAT!??
The rep was an idiot and didnt understand what i was trying to ask let alone be able to answer it. (she put me on hold for over 5 minutes while she asked her supervisor.
Does this mean i need to pay each item off before 25 days is up!?
I thought that ther 25 day grace period was from the point of "balance due" date. If billing cycles are 30 days, why do they start accrruing interest after 25 days on each item?
I'm so confused! I've paid off the full amount even though it said it wasnt due yet and am planning on just leaving it in my underwear drawer and using it once a year to keep it active, unless i can get an answer that makes sense so i can avoid paying any interest to this crappy ALL HASSLE card
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hdporter
Credit Expert (100+ Posts)
Posted: Mon Aug 14, 2006 1:09 pm
Quote:
So i ended up getting the card i got a platinum- $500 limit
I activated the card on july 16th. made purchases of $400 (hoping to show on my report the 400). I checked my account online a few weeks later expecting an invoice to arrive, but none came. So, I called customer service.
The cs service rep told me that i did not currently owe anything.
So... i asked the cs rep when i would start accruing interest.
She told me 25 days from the purchase!!
Does this mean i need to pay each item off before 25 days is up!?
I thought that ther 25 day grace period was from the point of "balance due" date.
I'm so confused! I've paid off the full amount even though it said it wasnt due yet and am planning on just leaving it in my underwear drawer and using it once a year to keep it active, unless i can get an answer that makes sense so i can avoid paying any interest to this crappy ALL HASSLE card
The rep misstated the facts.
Interest doesn't begin accruing until 25 days after your statement is mailed (the 25 day period likely marks your due date as well). If you pay your statement in full by the 25th day, no interest will attach to your account (including any new charges posted since that statement).
It takes as much as 6 weeks after your card receipt for your first new account statement to be issued. Often (this may be true with C1), a bank doesn't report your account balance other than what's outstanding at the time your statement is issued. Thus, if you charge on the account but pay in advance of your statement, only the actual balance left at the time of that statement will show up with the credit bureaus in determining your "high balance" -- which some people try to bump up for their C1 account, since C1 doesn't report credit limits.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
stilltrying
Posted: Mon Aug 14, 2006 3:35 pm
hdporter wrote:
[...]
Of course, the whole stance on limit increases is simply bizarre. It can't even be said that they're conservative in doling out increases -- all indications are that they don't even perform the semblence of a review when a request (they just spiel out the "not eligible" line) and aren't actively seeking to improve business volume by automatically extending increases where credit history warrants, other than on an exception basis.
[...]
It seems Capital One's way of doing things is that once a customer is issued one of the "sub-prime" cards, then that card/that account is forever locked in to that "sub-prime" status. I feel that's basically what I was told when I asked ( a ) if my account will ever be eligible to be upgraded to one of these cards "for people with excellent credit", ( b ) if down the road the transaction fee for balance transfers could be permanently removed, ( c ) asked if the $ 10,000 cap on the maximum credit limit that I can be granted could be removed [The answer to a, b, and c was "no"]
It appears that Capital One understands extremely well how to profitably offer sub-prime cards:
Quote:
Quote:
"Massachusetts Courts Tilting Towards CA's, Small-claims proceedings ignore individuals rights"
The courts don't track the number of cases filed by debt collectors. But the Globe, after hand-counting cases in the state's computer system, interviewing numerous clerks and judges, and attending dozens of hearings, determined that at least 60 percent of all cases funneled through the civil courts are brought by professional collectors. One credit card firm, Capital One Financial Corp., filed more than 38,000 small-claims lawsuits against Massachusetts consumers in the last four years....
...At a cost of just $40 to file a lawsuit for any amount up to $2,000, debt collectors find a bargain in Massachusetts small claims. A victory in court lets them pursue a debt for up to 20 years, and earn 12 percent annual interest on it - a rate that's matched or exceeded in only five states. The Legislature hasn't adjusted that rate since the 1980s.
Quote:
"Capital One Shares Hammered on 2Q Results"
The company blamed the shortfall on fewer late fees in the U.S., as more credit card customers paid their bills on time, ...
article #1: "This is a Marketing Revolution"
article #2: "Getting all the Credit"
article #3: "Credit Card Revolutionary"
article #4: "Invested Interests"
Here is a quote from the article "Getting all the Credit":
"Capital One tries out different interest rates. It tests to see what happens if it tells customers the rates will rise after various numbers of months, or stay fixed."
Capital One's CEO Richard Fairbanks last year gained almost $250 million after exercising stock options:
http://www.usatoday.com/money/companies/management/2006-04-09-ceo-compensation-report_x.htm http://www.washingtonpost.com/wp-dyn/content/article/2006/03/24/AR2006032401830_pf.html
Last edited by stilltrying on Mon Aug 14, 2006 4:16 pm; edited 6 times in total
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: stilltrying
Posted: Mon Aug 14, 2006 3:43 pm
hdporter wrote:
Quote:
I'm sorry to hear about how the conversation went. FWIW, I had posted some information on some other options for getting a credit limit increase ...
Don't give up just yet.
Well, it's not a question of "giving up" ... more like "why bother?".
Well, I meant "don't give up" in the sense that if you want to pursue this, then check out the information that I referenced in my previous post.
But I understand what you meant in the other sense of "giving up": "why bother?". Even calling the "account specialist" department and the "executive" department isn't a guarantee. Last winter I spent a long time writing the most persuasive letter that I could about the kind of excellent customer that I've been and about why I would like to ask them to consider me for a credit limit increase. I faxed the letter to the executive office. There was nothing they could do to help me, they said.
I wish I coud push the rewind button on my life and give my four years of time and money to some other company than Capital One.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Tue Aug 15, 2006 11:04 am
A few quick comments...
nefertiti66, you've got it wrong. Online you see your current balance and amount due. But nothing is due until your statement is issued (ISSUED, Harry, not mailed--often the postmark is several days after the closing date of the statement) and, depending on the terms, you'll have a certain grace period before you get charged interest on the balance shown--NOT THE PURCHASE DATE ITSELF--which means you have to pay it off IN FULL by the payment due date on that statement. If your grace period is 25 days, as you were told, your payment due date is 25 days after the closing date on the statement. That's pretty good!
Cap1 is neither good nor bad in general. It's just another bank. Every major bank has happy customers and dissatisfied ones. Don't read too much into anyone's particular praise or complaint.
It IS true that Cap1 pulls hard credit inquiries from all three bureaus when you apply for credit. It's also true that for most products it offers, it does not allow what it calls "customer-initiated" requests for credit line increases. I don't know why people get bent out of shape by such a policy and take it as a personal attack. That's the policy. The CSRs can't change it. Some just tell you the policy straight out when you start talking about CLIs and are thought to be rude. Others listen to all your reasons why you deserve a CLI and then tell you the policy, and then you think there's something wrong with your particular credit.
I've got great credit and 3 Cap1 cards right now, with limits of $5,000 on one and $20,000 on the other two. I've NEVER gotten a CLI. I don't expect one.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 4:35 PM
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