When Does Capital One Report to Credit Bureaus?
EG
Summary:
Capital One usually reports to the credit bureaus once per billing cycle, within a few days after your credit card’s statement closing date. So it’s important to ensure your balance on that date is relatively low compared to your credit limit. If you have been waiting until your bill’s due date to pay down your balance, you might want to pay it before the closing date instead.
Trying to increase your credit score can sometimes feel like trying to solve a puzzle with many moving parts. You know your credit score is important, but anytime you search for information about how to increase it, you get overwhelmed.
It’s true that there are many factors that impact your credit score, and it can feel impossible to keep track of all of them at once. The good news is that some of the ways you can boost your credit score, such as knowing what date your credit card company reports to the credit bureaus, require little effort but can still provide a big payoff.
Each of the major credit card companies has its own system for reporting information to the credit bureaus. In this guide, we’ll share when Capital One reports to the credit bureaus and how to use that information to your advantage.
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When does Capital One report to credit bureaus?
According to Capital One’s website, your information is reported to the major credit bureaus roughly every 30-45 days. Capital One doesn’t publicly state the date that it reports to the credit bureaus, but generally speaking, it does so once per billing cycle. It will usually be a few days after your monthly statement closing date.
Not sure what your statement closing date is? This date — which is different from your payment due date — is the last day of your billing cycle. Your balance on your statement closing date is what will appear on your next bill. It’s also the amount that will be reported to the credit bureaus as your balance, even if you then pay your balance off by the due date.
Pro Tip
If you aren’t sure of your statement closing date, you can easily find this information by checking your last bill from Capital One.
How credit reporting works
Let’s take a few steps back and talk about how credit reporting actually works. Each month, lenders and credit card companies report to three major credit bureaus: Equifax, Experian, and TransUnion. They send a report for each of their customers that shares their personal and account information, including their credit limit, current balance, and payment history.
For example, if you have a Capital One credit card with a credit limit of $1,000 and a current balance of $300, Capital One would report that to the credit bureaus.
Creditors aren’t necessarily required to report information to the credit bureaus. Additionally, some report to only certain credit bureaus, but not all three. Capital One, like most major creditors, does report account information to all three credit bureaus.
Pro Tip
Not sure if a creditor reports your credit account activity to the credit bureaus? You can easily find out by requesting a free credit report at AnnualCreditReport.com or by checking your credit scores using a tool like Credit Karma or Credit Sesame.
When the credit bureaus receive information from creditors, they compile that information, along with the rest of your credit report, and use it to determine your credit scores.
When Capital One credit cards report on-time payments and low statement balances relative to your credit limit, your credit score may increase. But if you’ve missed payments or have a high balance relative to your credit limit, your credit score may decrease when Capital One reports that information to the credit bureaus.
Why your credit card’s reporting date matters
You might be wondering why it matters when Capital One reports to the credit bureaus. After all, as long as you’re paying your bill on time, isn’t that enough? On the contrary, the date your information is reported may be more important than you think.
One of the most important factors that make up your credit score is your credit utilization ratio, which is the percentage of your available revolving credit that you’re using. For example, if you have a total revolving credit limit of $1,000 and have a credit card balance of $500, your credit utilization is $500, or 50%.
Generally speaking, your credit utilization ratio should be 30% or less (and ideally much less) to help your credit score. A higher utilization could be a sign to lenders that you can’t use credit responsibly. Your credit utilization makes up 30% of the formula for calculating your credit score, so a percentage that’s too high can have a major impact on your score.
Your statement closing date
Now let’s talk about how this relates to the date that Capital One reports to the major credit bureaus. As we mentioned, the balance on your statement closing date is what Capital One reports as your balance to the three credit bureaus.
Because your balance on your statement closing date is the last date of your billing cycle, it’s often the highest your balance is all month. Even if you pay off your full balance before your payment due date, it’s still the statement closing balance that’s reported to the credit bureaus.
The balance on your statement closing date is then used by credit bureaus to calculate your credit utilization. So if you’ve used a large percentage of your credit limit that month, your credit reports will show a high credit utilization, even if you don’t plan to carry a balance.
This timing is especially problematic for people who use their credit card for all of their expenses throughout the month and then pay it off in full. Even though you’re using your credit card responsibly, your credit score won’t reflect as much.
Keep tabs on your credit score
Do you need more help boosting your credit score? We’ve rounded up a list of the top credit monitoring services that can show you what’s on your credit score, alert you when something on your credit report changes, and offer tips to help you improve your credit.
How to improve your credit utilization
We’ve already discussed how your credit utilization (and knowing the date your credit card company reports your balance) is one of the most important factors when it comes to your credit score. Here are three ways to lower your credit utilization and, therefore, improve your credit score.
Pay off revolving debt
One of the simplest ways to reduce your credit utilization is to pay off revolving debt, including credit cards and lines of credit. The lower your credit card balances, the lower your utilization will be. If you’ve been carrying a balance on your credit cards, prioritizing paying it off can provide a major boost to your credit score.
Increase your credit limit
The other piece of the credit utilization equation is your credit limit. Yes, you can improve your credit utilization — and, therefore, your credit score — by paying off credit card debt. But you can also do it by increasing your credit limit. You can request a credit limit increase over the phone or through your online account.
Time your credit card payments
We’ve talked about how the date your credit card company reports to the credit bureaus is important for your credit score. But what we haven’t talked about is how to use that information to your advantage.
The best way to improve your credit utilization, especially if you use your credit card a lot throughout the month and then pay it off in full, is to have the lowest possible balance on your statement closing date. You can do that by properly timing your credit card payments.
Most people pay their credit card bills on or slightly before the due date. And if you have an automatic payment set up on your card, it’s probably set to pay the bill right on the due date. You can improve your credit utilization simply by adjusting your payment date. Rather than paying your balance off on your due date, pay it off just before your statement closing date.
By paying your balance off just before your statement closing date, you’ll ensure a $0 balance — or at least a much lower balance — is reported to the credit bureaus. This will ultimately result in a lower credit utilization rate.
FAQ
What day of the month does Capital One report to credit bureaus?
Capital One generally reports your account information to the credit bureaus within a few days of your statement closing date, which you can find on your most recent bill.
What time of the month do the credit bureaus update?
Credit bureaus don’t necessarily update your credit history at a set time each month. Instead, your report is updated each time a lender reports new information. Most lenders report at least once per month, or possibly every 45 days.
What is the highest credit limit on Capital One?
The highest credit limit available on a Capital One credit card depends on the card you have and your creditworthiness. Certain cards may offer higher maximum credit limits. Meanwhile, borrowers with excellent credit will generally have access to the highest credit limits.
How often does Capital One increase your credit?
According to Capital One’s website, you may be eligible to have your credit limit increased as often as every six months. If you request an increase rather than receiving one automatically, you may or may not receive one. It depends on your credit history with Capital One at the time.
Key takeaways
- Capital One reports to the credit bureaus every 30-45 days, but usually a few days after your statement closing date.
- Capital One and other creditors report information to the three major credit bureaus, who then use that information to compile your credit reports and calculate your credit score.
- The date your credit account is reported is important since your balance on that date is what will be used to calculate your credit utilization.
- You can improve your credit utilization by paying off credit card debt, requesting a credit limit increase, or timing your credit card payments around your statement closing date.
EG
Erin Gobler is a Wisconsin-based personal finance writer with experience writing about mortgages, investing, taxes, personal loans, and insurance. Her work has been published in major outlets, such as SuperMoney, Fox Business, and Time.com.
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