The 15/3 Credit Card Payment: What You Need to Know

Q: Does paying half of my credit card bill 15 days before the due date work?

Paying half your credit card bill 15 days before the due date may help lower your credit utilization ratio. Your credit card utilization ratio is typically an important factor in your credit score.

Q: How many days before the due date should I pay my credit card?

With the 15/3 credit card payment method, you make the first half of your payment 15 days before the due date, and the other half three days before the due date. However, even if you don’t use this method, you can still avoid interest charges by paying your entire statement balance on or before your due date.

Q: Why does the 15/3 credit card payment method work?

The 15/3 credit card method could lower your next month’s statement balance, which may reduce your credit utilization ratio. Your credit utilization ratio can be important for determining your credit score.

Q: How does paying early help my credit score?

If you make your payment before the statement closing date, you will reduce the outstanding balance on the statement. Outstanding balance is reported to the major consumer credit bureaus as debt. The less debt you have reported, generally the lower your credit utilization ratio will be. A credit utilization below 30% is often recommended.

The 15/3 Credit Card Payment: What You Need to Know

Jason SteeleUpdated February 24, 2023

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

While paying your bills on-time and minimizing your debt are important factors for strong credit, a strategy called the 15/3 credit card payment might be something to consider. This method may be useful to certain borrowers in some situations.Find out how the 15/3 rule for credit works in order to decide if it might be right for you.

What Is the 15/3 Credit Card Payment Method?

Most people make one payment on their credit card each month. With the 15/3 credit card payment method, you make two payments a month. For the first payment, you subtract 15 days from the due date on your account statement, and make half your payment then. You make the remaining payment three days before the due date.

How the 15/3 Credit Card Payment Method Works

The concept behind the 15/3 credit card payment method is that it may help you lower your credit utilization. One of the factors in your credit score is the amount of available credit you have relative to the amount you’ve used. This is your credit utilization ratio, which is one of several important credit card terms. It’s generally recommended that you keep your credit utilization ratio below 30%, which is the goal of the 15/3 credit card payment method.

When Does the 15/3 Credit Card Payment Work?

This method may be helpful for those who pay their statement balances in full each month. When you pay half of your credit card bill 15 days before the due date, you end up lowering your balance on the next month’s statement because extra payments are applied to the principal balance you owe. When this balance is reported to the major consumer credit bureaus, it affects your credit utilization ratio. This is how credit card payments work.The 15/3 credit card payment method may also help those who are working to pay off credit card debt. Making an extra payment could help lower the amount of interest you pay because it reduces the balance on your account. And the 15/3 credit card payment might also be beneficial for those who have a credit score in the low 700s, which is close to being excellent, but isn’t quite there. The strategy could possibly assist with that, though there is no guarantee.Recommended: 7 Tips to Reduce Credit Card Debt

Benefits of Using the 15/3 Credit Card Payment Method

While the 15/3 rule for credit may not make sense for everyone, it might offer benefits for some, including:

Reducing your credit utilization ratio

By paying half of your credit card balance early, your card issuer will report a lower balance on your next statement, which will reduce your credit utilization ratio.

Pays down debt faster

If you have an outstanding balance on your card, the interest is based on your account’s average daily balance. When you make a payment early, however, you reduce your account’s average daily balance, which typically means you would be charged less interest. This may help with paying off credit card debt faster. This is part of how credit cards function. When you’re looking for a new card and comparing credit cards, be sure to look at their interest rates to see which card might offer you the most favorable rate.

Decrease the chance of making a late payment

With the 15/3 credit card payment method, if you forget to make the second monthly payment, you’ll have a backup because you already made the first payment. Paying your credit card bill on-time is a critical part of using a credit card responsibly.

Downsides of Using the 15/3 Credit Card Payment Method

The 15/3 credit card payment method does have some drawbacks, however. These include:

You need available cash

To pay half of your statement balance 15 days early, you need to have the money on hand. Some people may not have the funds available at that time.

More work

Making two payments each month is more effort, and takes more time, than making a single monthly payment.

You can lose out on interest on your savings or investments

By paying half of your balance 15 days early, you’ll lose out on the interest your money would earn by sitting in your savings or investment account. Over time that could add up.

Little benefit to people who already have excellent credit

If you already have a high credit score, this method likely won’t offer any advantages to you.

Using the 15/3 Credit Card Payment Method: What to Know

Whether to use the 15/3 credit card payment method depends on your personal situation. For many, there may not be enough of a benefit to make it worth the extra work. But if you have outstanding debt you’re trying to pay off, or if you need to keep your credit score strong, you may want to consider this method. Those who are unable to pay off their credit card debt no matter what method they use might want to consider credit card forgiveness.

The Takeaway

With the 15/3 credit card payment rule, you make two payments on your credit card each month. The first payment is 15 days before your statement due date, and you make the second payment three days before the due date. This method may help reduce your credit utilization. But it’s not for everyone. Consider the pros and cons to decide if it makes sense for your needs. A lower credit utilization may be helpful if you’re looking for a new credit card. And if you’re exploring credit card options, Lantern by SoFi can help. In our online marketplace you can quickly and easily shop for credit cards to find the right rates and terms for your needs.

Frequently Asked Questions

Does paying half of my credit card bill 15 days before the due date work?

How many days before the due date should I pay my credit card?

Why does the 15/3 credit card payment method work?

How does paying early help my credit score?

Photo credit: iStock/Jovan Geber

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About the Author

Jason Steele

Jason Steele has been writing about credit cards and award travel since 2008. One of the nation's leading experts in this field, he has contributed to dozens of personal finance and travel outlets and has been widely quoted in the mainstream media.

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