Working with banks is a part of every day life at this point. Without banks, we can’t get lines of credit, and having easy access to digital wallets is all but impossible. And while sometimes banks make our lives easier, they can also make life just a little more difficult. When we start falling behind on debt payments — especially credit cards connected to a bank — they are quick to act.
While they are totally within their rights to do so, it can be a nuisance. Especially if you were planning on trying to take care of the blip before it was reported. If you hope to take care of your credit before the bank reports it, you need to know the schedule! This article will specifically look at Captial One to see when they report, who they report to, and how you can protect your credit report before anything happens. Keep reading to learn more!
Like most major banks, Capital One reports to all three major credit bureaus. The three leading credit reporting agencies are Experian, Equifax, and TransUnion. While this is primarily true, it's also important to consider where you live. Some states prefer one agency over the other. This might mean that more information may be sent to one and not sent to the others. If you would like a concrete answer on who Capital One reports to in your specific area, give your local bank a call to learn more.
This is dependent specifically on your own credit cycle. When you opened up your credit card with Capital One, a due date was set up on your account. Typically, your credit cycle lasts anywhere between 30-35 days. In most cases, there is a grace period of a few days past your due date. During this time, you can still make a payment without penalty. However, if you go past that grace period, it is likely that the bank will report the late payment to the credit bureaus.
One thing to note is that Capital One does not report to the credit bureaus on Saturday and Sunday. So if your due date happens sometime towards the end of the week, you potentially have two extra days to make a payment before a late payment is reported.
Another thing to keep in mind is what balance Capital One reports to the credit bureaus. So, for instance, if your due date you have a balance of $200, but then you spend another $500 after your due date, but before the amount is reported, Capital One will report the amount you owed on the day your payment was due. So, in this case, Capital One would report a $200 balance, not a $700 balance.
Typically, Capital One reports to the credit bureaus every 30 to 45 days. This typically is based on when you make your own payments. So if your payments are typically due on the 15th of the month with a one-week late payment period, then Capital One will likely report sometime soon after your late period is missed. Sometimes, banks do not report serious delinquency until a few payments have been missed, though this can change from bank to bank and even person to person. Because of this, it might be helpful to figure out what your statement closing date is. You can typically find this by either viewing your credit card statement, checking your online or mobile app account, or even by calling customer service.
Another thing to keep in mind is that your credit report may not automatically update directly after Capital One reports your account. It could take anywhere from a few days to a few months for the information to appear or impact your credit report. It could take even longer to reflect on your credit score.
Every time Capital One reports to the credit bureaus, a combination of information is sent. Sending a large amount of information ensures that the right account is addressed and assigned the delinquent payment. Here is a list of some of the information Captial One tends to send to the credit reporting bureaus:
If you have fallen behind on your credit card payments with Captial One, you might be looking for ways that you can get out of debt. Here are a few ways that you can get caught up with your payments once you fall behind.
When you take out a line of credit with a bank, their main goal is to recoup the money that you borrowed, and potentially make some back with the interest you are charged. If there comes a time when you can’t make payments as frequently as you once did, but know that you will be able to soon, reach out with a request for a hardship plan. Oftentimes, if you are upfront with banks, they will work with you. Again, their goal is to get back as much of what they loaned as they can. That won’t happen if you end up filing for Chapter 7 bankruptcy! So they might extend your payment due dates or even pause payments altogether.
While this isn’t indefinite, it can definitely buy you some time while you attempt to get your finances back in order. If you hope to get a hardship assistance plan, reach out to your local bank and be clear about what your situation is. Also, go in with a proposed plan that you can give if one is requested. For instance, if you have lost your job, but know that you have another one lined up two months from now, offer a pause in payments for three months! Again, be realistic in your expectations and be clear with your situation.
At some point, you might come to the point where you have to decide which bills are the most important to pay. Obviously, there are some bills that are all but mandatory. You need to keep a roof over your head, food in your fridge, and water and electricity in your home. On top of that, however, you might have some other bills that have to be taken care of. If you have to have a vehicle in order to get to work, make sure that you are staying on top of those payments (also note that a luxury vehicle or the newest model is not what we are referring to — a car doesn’t have to look good to get you where you need to go).
On the other hand, if you have luxury items that are still in debt, consider letting these things go. You can either sell them to cover the amount of debt you have left or let them go into repossession. Also, sometimes things like medical bills for things that have already been treated can be put on the back burner until you are in a more stable situation. Ultimately, take inventory of what bills have to be taken care of, and what bills can you afford to let go of, even if just for a while.
Sometimes, all it takes to get on top of your mounting debt is a little bit of organization. Unfortunately, financial organization is everyone’s strong suit. If you think you might need a little bit of help, consider looking into debt management! Debt management is a process in which you work with a credit counselor. This counselor will be able to help you organize your income, expenses, and debts in a way that you can stay on top of your finances. If you are able to do this before taking other, more drastic debt relief measures, it could help save your credit score.
If you are in way over your head, and have a large amount of debt, debt settlement might be something you want to look into. While this will still negatively impact your credit score, it could reduce your debt amount by up to 50%. Typically, individuals work with debt settlement companies that will negotiate with your creditor on your behalf. Keep in mind that, in order to successfully obtain a settlement, you will be instructed to stop paying your creditor. This is one part of the process that will have an impact on your credit score. Once the creditor agrees to a negotiation, you will pay the debt off. However, you will also pay the debt settlement company a percentage of the total debt that you enrolled.
If you are at the point where you can no longer make any payments on your debts, it might be time to consider filing for bankruptcy. There are a couple of different types of personal bankruptcy that you can file for (Chapter 7 or Chapter 13). Regardless of which you choose, the goal of bankruptcy is to emerge from the process with your debts either paid or forgiven.
Capital One’s reporting habits are similar to most major banks. If you are worried that you are falling behind on your payments, consider what level of assistance you need. If you would like honest and unbiased advice, give our team a call today at 833-272-3631. We would love to help you rebuild your credit score as well. You can also use our free Debt Relief Calculator below to see what the best option may be moving forward.
