Billing Cycle - Capital One new user

VII_UP

Hi all, I recently acquired a Capital One card with the intention of paying off the balance in full every month to build a credit history.
I have set up a direct debit for the 25th of each month to do this for me. However, my due date has become visible as the 28th so I am concerned the direct debit may not complete in time and want to set an earlier date.
However, my understanding of billing cycles is fundamentally flawed. If the payment is due on the 28th, and I pay the full balance on the 22nd for example - what happens if I make a purchase between the 22nd and the 28th? Will this be added to my next statement or will I need to pay this sum off before the 28th of the same month?
I really want to understand where the 'cutoff date' for purchases is before being shifted to the next month!

I hope that made sense, full disclaimer I am new to credit cards and the statement is not even visible yet only a due date and minimum balance.
I really appreciate guidance on this one!

D3xt3r5L4b

Once your statement is produced any further purchases will go into the next statement. 

VII_UP

D3xt3r5L4b said:

Once your statement is produced any further purchases will go into the next statement. 

Thank you, I'm actually still waiting on the statement and am not sure when to expect this! I hoped that was the case, I will wait for the statement and sort a direct debit with that date in mind as I can only change it once more!

cymruchris

You will get a statement. Whatever is on that statement will be taken by direct debit automatically on or around the payment due date. If you've set it to full payment - it'll take the whole amount. If you've set it to minimum payment, it'll take the minimum amount. If you spend anything after the statement is produced - that'll appear on next months statement, which in turn will be taken by next months direct debit. Once your direct debit is set up - there's nothing further you have to do. These dates/months are fictitious - but this is how it works - assuming you have set the direct debit to pay the balance in full. (Payment dates vary slightly depending on if the due date falls on a weekend or bank holiday)

Month 1:
Card arrives.
6th of the month Petrol £20
9th of the month Groceries £40
15th of the month Dominos Pizza £20
19th of the month Petrol £20
24th of the month -Balance £100 - Statement produced £100 to pay by payment due date of 21st of Month 2
29th of the month - Groceries £50 - total balance £150
Month 2:
3rd of the month - Petrol £20 - total balance £170
9th of the month - Groceries £25 - total balance £195
19th of the month - Petrol £20 - total balance £215
21st of the month - Pizza Express £20 - total balance £235
21st of the month - Payment taken £100 by direct debit - total balance now £135 (no interest as full payment of previous statement made)
24th of the month - Balance £135 - Statement produced £135 to pay by payment due date of 21st of Month 3

And so on. 

Nebulous2

You can’t setup a direct debit. Only Capital One can do that. Messing about with it isn’t a good idea, as changing the dates may mean it doesn’t get implemented in the first month. Setup and leave alone is the best idea.

If your statement says the full amount will be taken by DD then you will be fine. If your online banking has a list of active DDs, you could check it appears there to be doubly sure. Sometimes it might be a day or so later than the due date before the DD is actually taken, but the credit card company will count it as having arrived in time. 

VII_UP

cymruchris said:

You will get a statement. Whatever is on that statement will be taken by direct debit automatically on or around the payment due date. If you've set it to full payment - it'll take the whole amount. If you've set it to minimum payment, it'll take the minimum amount. If you spend anything after the statement is produced - that'll appear on next months statement, which in turn will be taken by next months direct debit. Once your direct debit is set up - there's nothing further you have to do. These dates/months are fictitious - but this is how it works - assuming you have set the direct debit to pay the balance in full. (Payment dates vary slightly depending on if the due date falls on a weekend or bank holiday)

Month 1:
Card arrives.
6th of the month Petrol £20
9th of the month Groceries £40
15th of the month Dominos Pizza £20
19th of the month Petrol £20
24th of the month -Balance £100 - Statement produced £100 to pay by payment due date of 21st of Month 2
29th of the month - Groceries £50 - total balance £150
Month 2:
3rd of the month - Petrol £20 - total balance £170
9th of the month - Groceries £25 - total balance £195
19th of the month - Petrol £20 - total balance £215
21st of the month - Pizza Express £20 - total balance £235
21st of the month - Payment taken £100 by direct debit - total balance now £135 (no interest as full payment of previous statement made)
24th of the month - Balance £135 - Statement produced £135 to pay by payment due date of 21st of Month 3

And so on. 

Brilliant and comprehensive, thank you! The statement has now appeared, previously all I had was a balance due and minimum payment so began to wonder if I should clear the balance now or wait. 

While it all seems so obvious, I wanted to be sure before I clear the balance now and run into that 33% interest brick wall... Thanks again!

VII_UP

Nebulous2 said:

You can’t setup a direct debit. Only Capital One can do that. Messing about with it isn’t a good idea, as changing the dates may mean it doesn’t get implemented in the first month. Setup and leave alone is the best idea.

If your statement says the full amount will be taken by DD then you will be fine. If your online banking has a list of active DDs, you could check it appears there to be doubly sure. Sometimes it might be a day or so later than the due date before the DD is actually taken, but the credit card company will count it as having arrived in time. 

While I may have used the wrong terminology, when establishing the account in the first place the direct debit was set-up online. But I have now changed the date in the mobile app and will keep an eye on this should payment not be taken automatically and clear the balance myself. Thanks!