How does making a mid cycle payment impact my card miles earned?

[Marc]

Hey there, this question relates to a paragraph in HfP‘s article about the VS credit cards.

There is one bit of small print to note. The number of points you can earn per month is capped by your credit limit. If your credit limit is £5,000 and you choose to spend £4,000, pay it off mid-month and then charge another £3,000 before month-end, you will only earn points on the first £5,000.

Just to double check if this applies in my situation.
A new statement has just been created (over an amount of ~50% of my credit card limit). The direct debit will be collected on 4 December.

I got a bigger expense (more than the remaining 50% of my limit) coming up before 4 December.

If I’d make a one-off payment now, would I earn fewer miles when my next statement is created or does the situation described in the quote above only applies if I pay off my card before a statement has been created?

Thanks for your help!

• This topic was modified 54 years, 11 months ago by .

[lev441]

Each statement period would earn you the credit limit value of your points. The direct debit coming out middle of the next statement month would mean that you’d be able to once again earn the credit limit of your points.

Example: Credit limit £5000. Maximium number of points for any statement month would be 7,500 points if on the paid card.
1st of month statement date generated for £2000. You’d get 3,500 points on the rewards+ card, and you’d have £3000 more to spend before you use up the credit limit.
Direct debit goes out on the 20th of the month for £2000 so there would be a further £2000 to spend. If you use the full balance that month you’d get £5000 of points which would be 7,500 points on the rewards+ card.
1st of following month statement. Full balance of 7,500 points earned.

[Marc]

Thanks lev441 for clarifying!

To be honest, I’m still not 100% sure about my scenario though.

To stick to your numbers for ease, what if I want to spend more than £3,000 in the time between my statement has been created and the direct debit will be executed.

Virgin gives me the option to make a one-time payment to pay my latest statement ahead of the direct debit date.
My understanding is this wouldn’t have an impact on my miles earning (as it’s not impacting my next statement) – is that assumption correct?

[BuildBackBetter]

Correct. Your one off payment or DD doesn’t directly impact on points earning. It only impacts your ability to spend.

[cinereus]

It’s really simple. It’s capped for each statement period. The key point is that paying off by any means is completely irrelevant.

[Marc]

Thanks everyone for clarifying. Makes perfect sense now. I only have the card since last month so wanted to be on the safe side.

• This reply was modified 54 years, 11 months ago by .

[harley]

Does anyone know the effect on the 241 voucher? No points earned over credit limit but will it count towards the 241 target?

[MattB]

harley wrote:

Does anyone know the effect on the 241 voucher? No points earned over credit limit but will it count towards the 241 target?

yes it should still count