Paying off your credit card bill in full each month is often touted as one of the best ways to build your credit score. But some people take it a step further and make an additional payment about halfway through the billing cycle. Specifically, they pay half the bill about 15 days before the due date, then pay the remaining balance a few days before the next billing cycle starts.
This strategy is sometimes called the “15/3 credit card payment method” or the “15/3 rule.” The idea is that it can help lower your credit utilization ratio and boost your credit score. But does splitting your payment into two parts really make that much of a difference? Let’s take a closer look.
How The 15/3 Credit Card Payment Method Works
Most credit cards have a billing cycle of around 30 days. Your statement closing date is usually around the same date every month The payment due date comes a few weeks later, say on the 22nd of the month.
With the 15/3 method rather than making one payment on the due date you make two smaller payments
- On day 15 of the billing cycle, you pay half of your total balance
- On day 3 before the due date, you pay the remaining half
If your balance was $1,000, you’d pay $500 in the middle of the month and another $500 right before the due date.
Your credit utilization, or the amount of your total credit limit that you’re using, should go down. Credit utilization makes up about 30% of your credit score. The lower your utilization, the better it is for your score.
Why People Use The 15/3 Credit Card Payment Method
Lowering your credit utilization can give your score a nice boost. Here are some specific reasons people make biweekly credit card payments:
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Improve credit score – Since credit utilization is a big factor, making two payments can keep it lower. This can help improve your credit, especially if you have high utilization.
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Qualify for better rates – A higher score means you could get approved for credit cards and loans with lower interest rates. This saves money over time.
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Increase credit limit – Card issuers may give you a higher limit if you consistently keep utilization low. A higher limit also lowers utilization.
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Look better to lenders – Before applying for a mortgage or auto loan, people will sometimes use the 15/3 method. Lower utilization can increase approval odds.
Does The 15/3 Payment Strategy Really Work?
Paying half your bill earlier in the month does lower your credit utilization before the billing cycle ends. But in most cases, the impact is minor. Here’s why the 15/3 method may not provide much benefit:
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You already pay in full – If you pay your balance in full each month, you likely have low utilization already. An extra payment won’t make much difference.
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Credit limit is high – With a limit of $20,000 and monthly spending around $1,000, your utilization is just 5%. Hard to get much lower than that.
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Only one credit score factor – Utilization is just one piece of your score. Payment history and credit mix also play big roles.
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Reporting timing – Your lower utilization from the first payment may not get reported until the next billing cycle.
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Temporary change – The impact is short term. As soon as you start spending again, your utilization will creep back up.
So while an extra payment can help lower utilization, the effect is often minor and temporary. Unless you carry high balances relative to your limit, it may not be worth the hassle.
When The 15/3 Credit Card Method Does Make Sense
However, there are some situations where splitting your credit card payment into two parts can have a more noticeable impact:
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You have high utilization – If you regularly use over 30% of your total credit limit, an extra payment can lower your utilization before the billing cycle ends. This can boost your credit score more significantly.
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Trying to improve bad credit – People with fair or poor credit scores have more room for improvement. Even a small dip in utilization can help.
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Applying for a mortgage – An extra payment or two right before applying for a home loan could have a modest impact. Lower utilization may increase approval odds.
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Seeking a credit limit increase – Paying early and often demonstrates you are a responsible borrower who keeps balances low. Issuers tend to give higher limits to these cardholders.
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Carrying a balance – If you can’t pay your bill in full and carry debt month to month, two payments will reduce interest charges over time.
So while it may not make sense for everyone, the 15/3 method can provide measurable benefits in certain situations. The key is understanding how and when it’s likely to work.
Pros And Cons Of The 15/3 Credit Card Payment Strategy
Before implementing this system, think through how it would work for your financial situation. Here are some potential advantages and disadvantages:
Pros
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Can lower credit utilization
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Boost credit scores, especially if utilization is high
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Increase chances of approval for mortgages and loans
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Pay down balances and interest charges faster
Cons
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More work to track two payments per month
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May not improve your credit much if you already pay in full
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No guarantee that lower utilization will be reported before billing cycle ends
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Need available funds to make two payments instead of one
Tips For Making The 15/3 Credit Card Payment Method Work
If you want to try the 15/3 payment strategy, here are some tips:
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Review your monthly statement closing date and due date so you know when to schedule the payments.
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Mark the two payment dates on your calendar so you don’t forget.
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Set up automatic payments through your bank for ease.
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Pay a set portion of your balance rather than a random amount.
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Give yourself a buffer of a few days rather than paying on day 15 and day 3 exactly.
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Make your first payment before you make additional purchases that billing cycle.
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Enroll in account alerts so you’re notified as you approach your credit limit.
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Consider setting up a separate checking account just for credit card payments.
The Bottom Line
Can paying half your credit card bill earlier in the billing cycle help your credit? For some people, it can, especially those with high balances relative to their limit or poor credit. But for people who already pay in full each month and have low utilization, the impact is negligible.
Before jumping into the 15/3 payment method, look at your credit limits, monthly spending, and current credit scores. For many people, just one payment per month is sufficient. But if you carry high balances or need to boost your credit quickly, paying earlier in the cycle can have benefits. Just be sure to weigh the pros and cons first.
Potential benefits of paying your credit card early
Everyoneâs situation is unique. But, in general, making an extra payment toward your current balance before the last day of your billing cycle could have a positive impact. Take a closer look.
Paying your credit card early could help your credit score
By making an extra payment toward your current balance before the billing cycle ends, you can help lower your credit utilization ratioâthe total percentage of available credit youâre using. And a lower credit utilization ratio could be beneficial to your credit scores.
First, hereâs some helpful information to explain what happens at the end of your billing cycle:
The last day of your billing cycle is generally around 21 days before your payment is due. On the day your billing cycle ends, your lender will:
- Calculate any interest charges for the month, along with your minimum payment amount.
- Create your monthly statement, post it to your online account and/or mail it to you.
- Record your outstanding balance and eventually report it to the credit bureaus.
But what does that mean for your credit utilization? By making an early payment before your billing cycle ends, you can reduce the balance amount the card issuer reports to the credit bureaus. And that means your credit utilization will be lower as well, which can boost your credit scores. In fact, FICO® is pretty specific about what it views as the most important credit factors. And about 30% is based on this ratio.
According to the Consumer Financial Protection Bureau (CFPB), experts recommend keeping your credit utilization below 30% of your available credit.
BEST Day to Pay your Credit Card Bill (Increase Credit Score)
FAQ
Should I pay my credit card 15 days before due date?
What is the 15-3 rule for credit card payment?
Can I pay half of my credit card bill before due date?
What happens if you pay your credit card 2 weeks early?
When should I pay my credit card payment?
Make half a payment 15 days before your credit card due date. If your payment is due on the 15th of the month, pay it on the 1st. Pay the second half three days before the due date. Some versions of the 15/3 rule swap in statement closing date for payment due date. The statement closing date comes about three weeks before the payment due date.
Should you make a payment 15 days before a credit card due date?
Making a payment 15 days and three days before the credit card due date, as the 15/3 hack suggests, is too late to influence credit reporting for that billing cycle. Multi-payment myth. You don’t get extra credit, so to speak, for making two payments instead of one, or making a payment early. Your creditor only reports to the bureaus once a month.
When do you make a 15/3 credit card payment?
When you have a credit card, most people usually make one payment each month, when their statement is due. With the 15/3 credit card rule, you instead make two payments. The first payment comes 15 days before the statement’s due date, and you make the second payment three days before your credit card due date. How do you do the 15/3 payment?
Should you pay your credit card bill in 2 days?
The 15/3 rule, a trending credit card repayment method, suggests paying your credit card bill in two payments—both 15 days and 3 days before your payment due date. Proponents say it helps raise credit scores more quickly, but there’s no real proof. Building credit takes time and effort.