The 15/3 credit card hack might help people stay on top of their credit card bills. But making credit card payments 15 and three days before your bill's due date won't necessarily help your payment history or credit utilization rate.
Generally, the fastest mode of bill payment is online banking where it is processed instantly. What is the processing time of credit card cheque payments? Cheque payments can take up to 7 working days. Outstation cheques may take up to 21 days.
When a credit card is paid, both the retailer's and the cardholder's banks need to verify the transaction. Thus, additional delays could be brought on by weekends, holidays, and international transfers until final approval and settlement are completed and funds are secured in pending status.
It generally takes one to five business days for a credit card payment to post to your account. Your payment may even be credited to your account before it posts. In other words, your card issuer may acknowledge receipt of the payment before the transaction is fully processed.
Several factors contribute to the processing time of debit card payments, including security measures, transaction verification, and settlement procedures. One common reason for the delay in debit card payment processing is the security checks conducted by the card issuer and payment networks.
Paying your credit card early could help your credit score
By making an early payment before your billing cycle ends, you can reduce the balance amount the card issuer reports to the credit bureaus. That means your credit utilization ratio—the total percentage of available credit you're using—will be lower as well.
Consequently , RTGS payments happen faster, as the amount is reflected in the payee's account within 30 minutes of initiation of payment at the remitter's end. On the other hand, NEFT fulfilment is reflected within 2 hours. Secondly, the RTGS system has a minimum threshold amount of 2 lakhs.
Always make at least your minimum payment each month by your statement's due date. If you miss a credit card payment, not only could your credit score take a hit, but you could also get stuck with late fees and penalty APRs. Miss too many payments and your debt could go to collections.
The Takeaway
The 15/3 credit card payment rule is a strategy that involves making two payments each month to your credit card company. You make one payment 15 days before your statement is due and another payment three days before the due date.
If you pay your credit card twice (or more), then it will only affect your credit score positively. It will also help us to: Avoid late fees and penalties. Build a positive payment history.
The most common ways of using Faster Payments are through single immediate payments and standing orders. Single immediate payments are one-off payments made through your bank account using online banking, your mobile banking app, or visiting a bank branch.
Debt Forgiveness: This involves working with your creditor (credit card company, bank, etc.) or a judge (in bankruptcy cases) to completely or partially erase your debt. This can happen through hardship programs or special negotiations.
Benefits of tap to pay: Convenience, speed, and security
This convenience is why tap to pay has taken off, offering not only a faster way to pay but also the added peace of mind that comes with advanced security features.
Single immediate payments are typically one-off payments. This type of payment is the most common and can be made 24 hours a day. Forward-dated payments are also one-off payments but they're set up in advance and sent and received on a pre-arranged date.
Paying your credit card early reduces the interest you're charged. If you don't pay a credit card in full, the next month you're charged interest each day, based on your daily balance. That means if you pay part (or all) of your bill early, you'll have a smaller average daily balance and lower interest payments.
A 700 credit score is considered a good score on the most common credit score range, which runs from 300 to 850. How does your score compare with others? You're within the good credit score range, which runs from 690 to 719.
Paying your credit card early does not directly affect your credit score, but can still positively influence it. You lower your credit utilization when you pay your bill early, which can help your credit score. Similarly, paying your bill early can mean you're not taking full advantage of certain situations.
They batch payments together and send them for processing all at the same time. This can happen as quickly as twice a day, or as rarely as twice a week. There's another reason for the delay: fraud detection. After the initial verification at checkout, the card issuers can take a day or two to investigate purchases.
As long as the other bank or building society uses Faster Payments too, the payment arrives almost immediately (though it can take up to 2 hours). Check if the bank or building society you're sending money to can receive Faster Payments on our sort code checker.