The 15/3 credit card payment method has recently gone viral on social media touted as a secret trick to boost your credit score fast. But is splitting your credit card payment in half and paying it 15 days and 3 days before your due date really an effective credit score hack? Or is it just another myth?
This article will break down what the 15/3 method is, why some believe it works, and if it can actually help improve your credit.
What Is The 15/3 Credit Card Payment Hack?
The 15/3 method suggests you should
- Pay half your credit card bill 15 days before the due date
- Pay the other half 3 days before the due date
The logic is that making two separate payments instead of one large payment shows credit bureaus you can handle credit responsibly. Supporters claim splitting payments like this can improve your credit score by up to 100 points in just a few months.
Why Do Some People Believe The 15/3 Method Works?
Here are some reasons this payment strategy has gained traction:
It targets your credit utilization ratio
Your credit utilization ratio – how much of your total available credit you’re using – is generally seen as one of the most important factors affecting your credit score. The lower your utilization, the better for your credit score.
Making an extra payment mid-cycle lowers the balance reported to the credit bureaus, which in turn lowers your utilization for that month.
It reminds you to pay early
Paying your bill early each month demonstrates responsible credit usage. The 15/3 method essentially builds in reminders to pay extra early.
There is some truth to the myth
Paying early does help optimize your utilization, which can give your score a small boost. So there is a grain of truth to theclaims, even if the exact 15/3 timing is arbitrary.
Does The 15/3 Method Really Improve Your Credit Score?
Despite going viral, the 15/3 strategy ultimately does not work as claimed. Here’s why it fails to provide a credit score silver bullet:
Most issuers only report statement balances
Your credit card company generally reports your statement balance to the credit bureaus once a month, on your statement closing date.
So any payments you make after that date but before your due date are not normally reported or used to calculate your credit utilization.
You only get credit for one on-time payment
No matter how many payments you make, on-time payment history is typically only updated once per billing cycle. There is no added credit score benefit to splitting payments.
The dates are arbitrary
There is nothing special about paying specifically 15 days and 3 days before your due date. What matters is paying before your statement closing date.
Utilization only provides a short-term boost
Lowering your utilization only results in a temporary bump in your credit scores. Unless you permanently increase your credit limit or decrease spending, your utilization will fluctuate back up again the next month.
It doesn’t address more important factors
Payment history and length of credit history have greater impacts on your credit score. The 15/3 method does nothing to improve these key factors.
When Does Early Payment Help Your Credit Score?
Paying your credit card bill early can optimize your credit utilization and provide a small boost to your credit score in the following situations:
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You have an upcoming credit application – Paying down balances early can lower utilization reported right before you apply for new credit. This maximizes scores.
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You have low credit limits – If you have low limits and high utilization already, an extra payment before your statement date can bring that ratio down substantially for that month.
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You’re close to maxing out a card – Paying early is useful if you have a high balance nearing your credit limit, but can pay some of it down before statement reporting.
Outside of those specific instances, however, regularly paying in full by the due date is sufficient.
How to Really Improve Your Credit Score
If you’re looking to build your credit, here are some proven ways to do it that will have a much bigger impact than the 15/3 method:
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Pay all bills on time – Payment history has the greatest effect on your scores. Pay all bills by the statement due date.
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Lower utilization – Keeping balances low on all cards will help. Consider asking for credit limit increases.
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Build credit history – Letting accounts age several years demonstrates stability. Don’t close old accounts unnecessarily.
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Limit hard inquiries – Each credit application causes a hard inquiry that can ding scores temporarily. Only apply for credit you need.
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Monitor your reports – Review reports from Equifax, Experian, and TransUnion. Dispute any errors or fraudulent accounts.
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Practice good habits – Such as not maxing out cards, paying down debt, and not opening too many new accounts at once.
The Bottom Line
While the 15/3 method is not the credit score hack it claims to be, there are legitimate benefits to paying your credit card bill early in some cases.
To build credit effectively, focus on proven strategies like paying on time, lowering utilization, and letting accounts age. Don’t get caught up in gimmicks that promise to boost your credit overnight. Be wary of claims that sound too good to be true.
Patience and consistently demonstrating responsible credit habits will have the biggest impact on improving your credit scores over time. There are no shortcuts. But by understanding what impacts your credit and making payments on time every month, you will see your credit scores slowly but surely start to increase.
Debunking a few myths
There are 4 myths that can become huge time-wasters if left unchecked
Myth 1: Carrying a balance is necessary
Fact: Carrying a small balance could potentially raise your score but itâs unnecessary and you have to pay interest
Myth 2: Paying your credit card bill early will earn you fewer rewards points or cashback
Fact: Paying your credit card bill early or on time has no impact on the rewards you earn. Rewards are typically based on the amount you spend on the credit card, not on when you make the payment. However, carrying a balance and paying interest may offset the value of any rewards earned.
Myth 3: You get extra credit for making a payment early
Fact: Itâs generally the case that you dont get any extra credit or benefit from making credit card payments earlier than the due date. The credit bureaus are primarily concerned with whether you make your payments on time and the amount of your outstanding balance at the time the statement is generated. And, creditors only report your bheavior to the credit bureaus once a month.
Myth 4: Pay your credit card after every transaction to raise your score
Fact: The idea that you need to pay your credit card immediately after every transaction to raise your credit score is not entirely accurate. While making timely payments is crucial for maintaining a good credit score, the timing of your payments in relation to individual transactions doesnt have a significant impact on your credit score.
The 15/3 strategy, does it work?
The 15/3 strategy 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.
Typically, on or near your statement closing date â not on the payment due date â your credit card company reports to the credit bureau or bureaus with such information as your balance and credit limit. It does this only once a month. Your due date comes about three weeks after that. So targeting the due date makes no sense. 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.
If you are currently using the 15/3 method, you may be improving your credit score, but the 15 and 3 are irrelevant. You might as well make a single payment prior to the closing date. The creditor is just reporting what your balance is at the end of the billing cycle.
After years in this credit card game theres one method that works best for raising your credit score and it keeps you within the 10% credit utilization range that actually helps your score instead of hurting it.
What you have to do is pay 95% of your account balance 2 days before your statement/closing date, and then the remaining 5% 2 days after that same statement/closing date.
BEST Day to Pay your Credit Card Bill (Increase Credit Score)
FAQ
Does the 15-3 rule really work?
Can I split my credit card payment before due date?
Can I pay half of my credit card bill before due date?
Should I pay my credit card 15 days before due date?
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.
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.
When do I make a 15/3 credit card payment?
You make the first payment about 15 days before your statement date (about halfway through the statement cycle), and the second payment three days before your credit card statement is actually due. How Does the 15/3 Credit Card Payment Work? The way credit cards work in most cases is that you make purchases throughout the month.
When should I pay off my credit card?
You pay half the credit card balance 15 days before the due date and the second half three days before the due date. This method ensures that your credit utilization ratio stays lower over the duration of the statement period. Should I pay off my credit card in full or leave a small balance?
How do I make a payment 15 days before the due date?
Look at your calendar and figure out the date that is 15 days before the payment due date. Subtract three days from the due date and mark this date on your calendar. Figure out which date is three days before the payment due date. Make a partial payment 15 days before your payment is due. Pay as much as you can toward your credit card balance.