It's better to pay the closing balance once a month, but if you're worried about high utilization and have a decent length of on-time credit history, then it's best to ask the credit card company to increase your credit limit.
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.
Credit card issuers assess interest based on your average daily balance, not your balance at the end of the month. Paying more than once per month — say, every two weeks — will reduce that average balance and, with it, your interest charges.
While it's perfectly fine to make that full payment once per month, it may be beneficial for your budget and credit score to make several small payments toward your balance instead, as long as they add up to your full balance owed.
If you make biweekly payments, that extra annual payment goes entirely toward the principal. This means that there is less money in the loan to charge interest. Consequently, you end up accruing less interest and will owe less money to your lender overall.
If you're close to maxing out your credit cards, your credit score could jump 10 points or more when you pay off credit card balances completely. If you haven't used most of your available credit, you might only gain a few points when you pay off credit card debt.
We can pay the dues on the credit cards as many times as we want in a month, but making multiple card payments every month is a good way to increase credit score. Also, you have to make sure at least the minimum payments for each card are paid by their due date. Not doing so will affect the CUR negatively.
In most cases, the highest credit score possible is 850. You can achieve the highest credit score by taking a variety of essential steps. Still, for many people, it's difficult considering the range of factors that dictate the highest credit score possible.
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.
The golden rule of Credit Cards is simple: pay your full balance on time, every time. This Credit Card payment rule helps you avoid interest charges, late fees, and potential damage to your credit score.
So, if you make payments to your credit card company before your due date, you'll have a lower balance due (and higher available credit) at the close of your billing cycle. That means less credit card debt gets reported to the credit bureau (or bureaus), which could help your credit score.
Number and timing of applications
The general rule of thumb is to limit applications to no more than one personal and one business card within 90 days. Still, I've also read reports of applicants being approved for two personal cards in a month. It's also worth pausing to talk about risk tolerance here.
Paying early can offer a safety net when you're near your credit limit and interest charges could push you over the limit. If that happens, you may incur an over-the-limit fee from your credit card company.
To build credit effectively, experts recommend you use your credit card at least once a month for small purchases and always pay off the balance in full. This helps establish a strong payment history, which is crucial for improving your credit score.
Any amount that's left at the end of the billing cycle is carried over to next month's bill. Credit cards charge interest on unpaid balances, so if you carry a balance from month to month, interest is accrued on a daily basis.
Even better, just over 1 in 5 people (21.2%) have an exceptional FICO credit score of 800 or above, all but guaranteeing access to the best products and interest rates.
A credit score of 900 is not possible, but older scoring models that are no longer used once went up to 900 or higher. The highest possible credit score you can get now is 850.
The 15/3 hack claims you can help your credit score dramatically by making half your credit card payment 15 days before your account statement due date and the other half-payment three days before.
When you make multiple payments in a month, you reduce the amount of credit you're using compared with your credit limits — a favorable factor in scores. Credit card information is usually reported to credit bureaus around your statement date.
Making multiple payments to help reduce your balance, and thus your credit utilization, is a good way to improve your credit score, but timing the payments is also important.
While the term "deadbeat" generally carries a negative connotation, when it comes to the credit card industry, it's a compliment. Card issuers refer to customers as deadbeats if they pay off their balance in full each month, avoiding interest charges and fees on their accounts.
Keeping a low credit utilization ratio is good, but having too many credit cards with zero balance may negatively impact your credit score. If your credit cards have zero balance for several years due to inactivity, your credit card issuer might stop sending account updates to credit bureaus.