Weekly credit card payments are a good way to keep your spending in check. You'll be less likely to wind up with a big credit card bill that you can't afford if you pay weekly. When it helps you avoid interest. If you pay off your card in full by the due date, you won't be charged interest on purchases.
Paying your balance more than once per month makes it more likely that you'll have a lower credit utilization rate when the bureaus receive your information. And paying multiple times can also help you keep track of your spending and cut back on any overspending before you fall into debt.
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'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.
But if you make the minimum payment twice a month, you will pay down your debt much more quickly. Making multiple payments, especially if they are coordinated around your paychecks, can help you smooth out your cash flow and make it easier to increase your total monthly payment amount.
Helping your credit scores
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.
Paying off your credit card balance every month is one of the factors that can help you improve your scores. Companies use several factors to calculate your credit scores. One factor they look at is how much credit you are using compared to how much you have available.
To reach an 800 credit score, you'll want to demonstrate on-time bill payments, have a healthy mix of credit (meaning accounts other than just credit cards), use a small percentage of your available credit, and limit new credit inquiries.
As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.
Credit utilization — the portion of your credit limits that you are currently using — is a significant factor in credit scores. It is one reason your credit score could drop a little after you pay off debt, particularly if you close the account.
The 15/3 credit hack gets its name from the practice of making your monthly payment in two installments: the first half 15 days before your due date and the second half three days before your due date. This hack, popular on various social media platforms, claims to be a shortcut to good credit.
By paying your debt shortly after it's charged, you can help prevent your credit utilization rate from rising above the preferred 30% mark and improve your chances of increasing your credit scores. Paying early can also help you avoid late fees and additional interest charges on any balance you would otherwise carry.
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.
I've gotten into the habit of paying my credit cards off every two weeks, and I recommend this strategy to everyone. While you should always strive to pay your bills in full to avoid interest, this approach is even more impactful for cardholders who carry balances.
Should I be paying my credit card at least twice a month? In most cases, yes. This won't only save you interest charges, but it'll also help you pay off your debt faster, stay motivated when repaying debt, avoid late fees, align your bill with your pay schedule and more. It's a win in nearly every way.
Yes, if you pay your credit card early, you can use it again. You can use a credit card whenever there's enough credit available to complete a purchase. Your available credit decreases by the amount of any purchase you make and increases by the amount of any payment.
An 800 credit score is not as rare as most people think, considering that roughly 23% of adults have a credit score in the 800-850 range, according to data from FICO. A score in this range allows consumers to access the best credit card offers and loans with the most favorable terms.
Yes, your 654 credit score can qualify you for a mortgage. And you have a couple of main options. With a credit score of 580 or higher, you can qualify for an FHA loan to buy a home with a down payment of just 3.5%.
Yes. Assuming the rest of your finances are solid, a credit score of 700 should qualify you for all major loan programs: conventional, FHA, VA and USDA loans all have lower minimum requirements, and even jumbo loans require a 700 score at minimum.
While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
Consider yourself in “good” shape if your credit score is above the average for people in your age group. Given that the average credit score for people aged 18 to 25 is 679, a score between 679 and 687 (the average for people aged 26 to 41) could be considered “good”.
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
Paying an extra dollar a day on our hypothetical $500,000 mortgage will reduce repayment time by three months and save about $5,470 in interest. Paying an extra dollar a day on our hypothetical $500,000 mortgage will reduce repayment time by three months and save about $5,470 in interest.
The Bottom Line. Making timely payments for the full or minimum amount due is always a good idea. Partial payments are usually considered late or missed payments, which can impact your credit—and not in a good way.
While you can tap into savings to pay your credit card bill—especially if you've got mounting credit card debt and a flush savings account—it's not something you should get into the habit of doing. Using savings to cover a credit card bill will have a negative impact on your savings goals.