CapitalOne Credit Builder Card

cheekycactus

Hey Guys,

I'm new to Credit Cards and while I've read through the huge amount of information here, I just wanted to double check some things.

1) My limit is £200 and I'd like to use my Credit Card to purchase things I normally would (such as shopping etc) and then clear it at the end of each month however, will maxing it out be detrimental? If it matters, I also have a £400 overdraft that isn't used

2) If I clear everything off by Direct Debit on the first of each month but the reporting data to the likes of Experian is later in the month, will my report essentially show that I always owe money on the card?

Thank you for helping me understand

IvanDP

cheekycactus wrote: »

Hey Guys,

I'm new to Credit Cards and while I've read through the huge amount of information here, I just wanted to double check some things.

1) My limit is £200 and I'd like to use my Credit Card to purchase things I normally would (such as shopping etc) and then clear it at the end of each month however, will maxing it out be detrimental? If it matters, I also have a £400 overdraft that isn't used

2) If I clear everything off by Direct Debit on the first of each month but the reporting data to the likes of Experian is later in the month, will my report essentially show that I always owe money on the card?

Thank you for helping me understand

I'm definitely no expert on the subject, and no doubt more knowledgeable members will be able to give you better advice, but.......

As long as your credit card is paid off in full before the statement due date, it will only have a positive reflection on your credit report.
It will show that you can manage credit responsibly

[Deleted User]

1. No it won’t be detrimental.
Using your overdraft however will be, so don’t do that.

2. The statement balance will be reported. Usually the following month the payment amount will be reported which will even it out.

Yes the card will “look” like it’s carrying a balance, which is technically true, but the 2 reported figures (statement and payment) will balance it out.

cheekycactus

Thank you both.

Is it possible to work out the date CapitalOne reports to the credit agencies? Is there a date I would see on my report?

If so, would it be preferable to move the DD date to 3 or so days before then?

Sorry for all the newbie questions.

Ben8282

With a limit as low as £200 you really don't have much choice other than to max it out in order to put any decent spend through it!
Whilst in theory using the credit card up to it's limit is not a good thing, with very low limits such as yours this has to be balanced against actually being able to use the card. I would say don't use the whole £200 as you don't want to risk accidentally exceeding your credit limit but use a good proportion of it.

How do you know when the reporting date to Experian is? Please explain how you have determined this.
You will not choose the day of the month on which the direct debit is taken. It is a 1 in 31 chance that it will be the 1st of the month. The date of the direct debit will depend on your statement date which can't really be predicted. If your statement date produces an inconvenient date for the direct debit, you will probably be able to ask to have the statement date changed. (Don't have a Capital One card so don't know how willing they are to do this).
With regard to what is reported. On the reporting date each month the balance of the card on that date will be reported. Each month the credit report will also show the statement balance and the payment amount from which it will be apparent that you are paying in full.
Yes it will always appear that you owe money on the card but this is normal.

Ben8282

cheekycactus wrote: »

Thank you both.

Is it possible to work out the date CapitalOne reports to the credit agencies? Is there a date I would see on my report?

If so, would it be preferable to move the DD date to 3 or so days before then?

Sorry for all the newbie questions.

Yes you will see the last updated date on your report but it can be difficult to determine the exact date that a credit card reports. You will have to keep track of the balances throughout the month or at least around the last updated date and compare with the reported balances.
Have a look at post 3 (by me) on this thread as it may be informative https://forums.moneysavingexpert.com/discussion/6058824/my-credit-score-dropped-for-this-reason

cheekycactus

Thanks guys - I just assumed it would be the same as the 'last updated' date on things such as ClearScore. Sorry if I was wrong

Ben8282

cheekycactus wrote: »

Thanks guys - I just assumed it would be the same as the 'last updated' date on things such as ClearScore. Sorry if I was wrong

It may well be. Not saying it isn't but not saying it is either.

cheekycactus

I just called them to get PDF files of fees and charges which I wasn't emailed as of yet and they said that I'd only been 'Provisionally accepted' despite being Pre-approved on ClearScore and getting an email confirming it was successful. How odd

[Deleted User]

It doesn’t matter about the date.

As I said before it balances itself out anyways and any potential lenders will see this.

cheekycactus

Thanks Gary!