Common wisdom says that it's best to pay off your credit card statement balance in full every month. By doing so, you can avoid interest charges and help stave off debt. For those who use charge cards, a full payment at the end of every statement period is required.
The key is to keep your balance at or below 30 percent of your credit limit to help improve and maintain a good credit score, which means having no balance at all is even more helpful. Always try to pay off your credit card in full when possible.
Ideally, you should pay off your balance in full, though paying as much as you can above the minimum will help you save money. But don't feel defeated even if you're only able to make the minimum payment each month — you're still ensuring your credit remains in good standing.
Paying In Full
Over time, this will make your credit score go up and keep you out of debt. The easiest way to keep your monthly balance attainable is to not overspend and always keep track of your monthly statement so that you can afford it.
Carrying a balance does not help your credit score, so it's always best to pay your balance in full each month. The impact of not paying in full each month depends on how large of a balance you're carrying compared to 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.
Overpaying does not raise your credit limit.
An overpayment will not help boost your credit limit, not even temporarily. Your credit limit remains the same — you'll just have a negative balance that will be applied toward your next statement.
If you're only making the minimum payment for a long period of time, that interest can add up and make it harder to pay off your balance. If this results in you eventually being unable to make a minimum payment, then that can likely hurt your score.
Even if you have one or two late payments for the account on your credit history, paying the debt in full sends the signal to lenders that you follow through when it comes to paying back what you borrow.
There are some differences around how the various data elements on a credit report factor into the score calculations. Although credit scoring models vary, generally, credit scores from 660 to 724 are considered good; 725 to 759 are considered very good; and 760 and up are considered excellent.
Paying the full statement balance by your card's due date every month will allow you to avoid interest charges.
If you can afford to pay off a debt, it's generally a much better solution than settling because your credit score will improve, rather than decline. A better credit score can lead to more opportunities to get loans with better rates.
idiom. : to pay all of the money owed (for a bill or debt) The receipt shows that their bill has been paid in full.
We surveyed over 2,000 people and found that theft and fraud is the leading fear when owning a credit card and found that: 1 in 3 Americans are afraid to use their credit cards online, even though using a debit card instead of a credit card can leave you more vulnerable to information hacking.
Generally, your overpayment will appear as a credit in the form of a negative balance on your account. This negative balance will roll over towards any new charges you make or outstanding balances for the next month.
While spending over your credit limit may provide short-term relief, it can cause long-term financial issues, including fees, debt and damage to your credit score. You should avoid maxing out your card and spending anywhere near your credit limit. Best practice is to try to maintain a low credit utilization rate.
Some have low interest rates or opening deals, but these may be offset by extra charges or fees. These can quickly rack up the amount you owe. If you regularly overspend on your credit card and don't clear the balance, it could damage your credit score. This may make it harder for you to borrow money in future.
High-interest credit card debt can devastate even the most thought-out financial plan. U.S. consumers carry $6,501 in credit card debt on average, according to Experian data, but if your balance is much higher—say, $20,000 or beyond—you may feel hopeless.
Overall consumer debt has increased for Americans, average credit card balances jumped to $7,236 according to Lendingtree's 2025 Credit Card Debt Statistics. Debt.com's latest survey of 1,000 credit card users shows 1 in 5 have between $10,000 and $30,000 in credit card debt.
$5,000 in credit card debt can be quite costly in the long run. That's especially the case if you only make minimum payments each month. However, you don't have to accept decades of credit card debt. There are a few things you can do to pay your debt off faster - potentially saving thousands of dollars in the process.
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.
Funds Transfer Rules — MSBs must maintain certain information for funds transfers, such as sending or receiving a payment order for a money transfer, of $3,000 or more, regardless of the method of payment.