The 15/3 Credit Card Payment Hack
You will find many articles on Google sharing tips and techniques to boost credit scores. Almost every article offers similar advice like paying the bills before the due date. Although this is true, it is not a hack or a trick to improve your scores. In this post, you will learn about the 15/3 credit card payment hack in detail.
You already know the main idea about increasing your credit score, which is making regular on-time payments. But today, you will learn about the 15/3 credit card payment hack that will change the way you clear credit card dues. Initially, this hack might sound illogical, but when you understand how it works, maintaining your credit card score will become easier.
What is the 15/3 Credit Card Payment Hack?
When following the 15/3 credit card payment hack, you make two payments every month rather than one. Let’s learn how this works:
- Check the credit card due date, which will be mentioned on the credit card statement
- You can count back 15 days from the due date
- Pay half payment on that date
- Now count back 3 days from the due date
- Pay the remaining amount on that date
You might be wondering how two payments a month will affect your score. Well, with two payments per month, your credit card purchases will remain lower than your total monthly payments. This strategy will reduce your credit card utilization percentage, which will eventually improve your credit card score.
In simple words:
The 15/3 credit card hack is about making two payments in a month. You will pay the first half of your payment 15 days before the due date and the remaining payment 3 days before. That’s why many people refer to this hack as 15/3. The due date and amount are different each time. Thus, scheduling the payments mid-month is not possible, which is why you have to do this manually.
How does 15/3 Credit Card Payment Hack Help?
The 15/3 credit card payment hack decreases your credit utilization. Credit utilization is a major factor that influences your credit score. It is the total of outstanding balances divided by credit limits and determines how much total credit limit you have at a time. If you have high credit utilization, it means that you are using more credit. At the end of the month, you can calculate your credit utilization.
If you pay the dues before the statement closes, your credit utilization will be minimal. This means that your debt at the end of the month will be lower. Keep in mind that the credit card companies account for debt when the statement closes. instead of considering the total reported amount.
How Two Payments Reduce Your Credit Utilization?
If you repay your bills before the due date, your report will reflect it. However, it will not show that you make multiple payments. If you will check your credit score report, it will show monthly columns only. With that information, one can tell that you pay the bills on time.
How does the 15/3 Credit Card Payment Hack Work?
Let’s understand how the 15-3 credit card payment hack works. If you have to pay $1000 to your credit card company before a specific date, you should divide the total due payment into two installments. You will pay the first $500 15 days before the due date. Then you will pay the remaining $500 3 days before the due date. This will take your balance yo zero with three days remaining.
Important Factors that Make Up Your Credit Score
Experts suggest that five major factors make up your credit score. These factors are:
- New credit – 10%
- Credit mix – 10%
- Credit history – 15%
- Amounts owed – 30%
- Payment history – 35%
Notice the factors don’t include the number of payments in a month. Thus, the credit score will remain unaffected if you pay the bills on time. If you want to improve your credit score, learn about these factors in detail.
How Multiple Monthly Payments Boost Your Credit Score?
If you want to boost your score and fix bad credit, you should divide the monthly payments into installments. Here are some ways in which bi-monthly payments improve your credit score:
- You can reduce credit utilization with the 15/3 credit card payment. According to experts, you should maintain your debt-to-income ratio below 36%. When you have few debts, the lenders will trust you even more. You can reduce your DTI (debt-to-income ratio) by dividing your payments into two installments. Also, you should check with the lenders whether they allow multiple payments or not. Many lenders have different plans for their borrowers depending on the number of payments. Some of them allow a single payment, while others offer multiple payment options. You can increase your credit score and available credit by reducing DTI.
- You can clear your dues faster with the help of the 15/3 credit card payment hack. Divide your monthly payment into two installments so that you can reduce your financial burden. Normally, you make 12 payments in a year on your mortgage. But, when you are paying bi-monthly, you can pay the same amount in 24 payments. That way, you make 12 extra payments every year, reducing financial stress. This will help you pay off the debt a little faster and save money on interest.
- With bi-monthly payments, you can create a habit of clearing dues on time. That way, you won’t have any late payments in your record. What’s more, clearing your dues on time will reflect positively on your credit score.
Should You Practice the 15/3 Credit Card Payment Hack?
Clearing your monthly dues with bi-monthly payments can be incredibly helpful for the short term. However, in long run, you won’t notice a huge difference. If you are between a good score and an average score, try reducing your credit card utilization, which can also bump your credit score a little. This slight increase can help you with the loan approval process.
This will also save a significant amount on your interest. However, this hack may not be useful if you don’t want a loan anytime soon. That said, you can still reduce the burden on your shoulders by paying the bills in two installments.
Many people think that paying half the payment in the first 15 days and the remaining amount 3 days before doesn’t make any difference. Well, you can divide your payments into four installments as well and that would be more convenient than paying twice. Also, there are no benefits of paying 15 days and 3 days before the due date. If you want to pay the bill on a bimonthly basis, you can choose any date.
If you think that the 15/3 credit card payment hack makes sense, you should practice the technique. On the other hand, if you have a better idea to reduce the financial burden to pay the bills, you can try that instead.
What are the Misconceptions about the 15/3 Credit Card Payment Hack?
Many people believe the 15/3 credit card payment hack is helpful because it allows them to pay in two installments which can help speed up the returning process and improve your payment history.
That said, there are certain misconceptions that people should be aware of. First off, paying the bills in two installments won’t affect your payment history, and neither would it improve your creditworthiness. That said, it will definitely reduce several burdens, especially for those who want to apply for a new loan.
Effective Ways to Increase Your Credit Score
Do you want effective techniques to boost your credit score? If yes, then here are some tips:
- Always pay your dues on time. Otherwise, you will lose your creditworthiness. You can use the 15/3 credit card payment hacks to clear your dues before the deadline. The technique improves your credit utilization, which is a part of your credit score.
- If you have a poor credit score despite paying the bills on time, then you will get a dispute credit report error. Visit AnnualCreditReport.com to identify the mistake. Sometimes, the report contains the wrong due date, or it mixes your record with someone else’s. If you want to steer clear of such issues, you should contact the AnnualCreditReport team.
- You can become an authorized user if your relative or friend has a good history with a high credit limit. They can add you as an authorized user to improve your credit utilization. This technique is also called credit piggybacking.
Conclusion
If you want to improve your credit score, you should check the deadline for returning the money due. As mentioned abundantly, make your first payment 15 days before the due date and the second payment 3 days before the due date. Doing so may also help boost your credit score. You should follow the same strategy every month to get the same benefit.
Now that you understand the 15/3 credit card payment hacks, you can boost your credit score and reduce the interest rates. Doing so can also help you get easy approvals for house and car loans.
Frequently Asked Questions
1. What is the Best Technique to Trick Your Credit Score?
If you want to improve your credit score, develop a routine of paying the bills twice a month. Also, you can follow these tips:
- Review your credit score report
- Stay in touch with the creditor
- Set reminders for the payment
- Clear revolving account balances
- Limit new accounts
- Don’t close unused accounts
2. Can You Increase Your Score with Two Payments?
Multiple payments don’t increase your credit score directly. However, they can help you manage your payments and credit utilization ratio.
3. Is the 15/3 Credit Card Payment Hack Helpful?
The 13/3 credit card payment is effective because it gives you control over your payments. Many people struggle to make a single payment for their bills because they are unaware that they can make multiple payments without affecting their credit score.
4. Is it Possible to Hack Credit Score?
Yes, you can hack your credit score with the 15/3 technique. This trick will help you improve your credit score by dividing your payments into two halves. That way, you can clear your dues on time without any pressure or burden. Having a good credit score is important for your financial health, and with the help of the 15/3 credit card payment hack, you can achieve your financial goals.
5. How Much Time Does it Take to Remove a Poor Credit Score?
When you clear your dues on time, you will notice a significant boost in your score. That said, it takes about seven years to convert your negative score into a positive. If you struggle to pay your bills with a single payment, you can divide it into multiple payments.
6. How to Avoid Credit Score Loophole?
According to the Fair Credit Reporting Act, you can write a letter of dispute to the credit bureaus and ask them to remove a credit score loophole. However, when you responsibly pay your dues on time, the bureau will respond to you quickly.
