Table of Contents
- What Is the 15/3 Credit Card Payment Method?
- How Does the 15/3 Credit Card Payment Work?
- Why the 15/3 Credit Card Payment Method Works
- Reduced Credit Card Utilization Through the 15/3 Method
- When Does the 15/3 Credit Card Payment Method Work?
- Pros and Cons of Using the 15/3 Credit Card Payment Method
- Using the 15/3 Credit Card Payment Method: What to Know
- FAQ
In most cases, people make one credit card payment per month, often on the day it is due, but with the 15/3 credit card payment method, you make two payments each statement period. This is a strategy to help lower your credit utilization ratio — the percentage of your total available credit you’re using at any one time, which is a big factor in determining your credit score.
Typically, with the 15/3 credit card method, you pay half of your credit card statement balance 15 days before the due date and then make another payment 3 days before the due date. Learn more about this technique here.
Key Points
• The 15/3 credit card method involves making two payments each billing cycle: one 15 days before the statement due date and another 3 days before the statement due date.
• The goal is to reduce your credit utilization ratio — the amount of credit you use relative to your total credit limit, which can affect your credit score.
• By paying down your balance earlier in the cycle, your reported utilization remains lower throughout the month rather than spiking before the due date.
• This may be most helpful for people with low credit limits, high monthly spending, or those actively trying to build or maintain their credit.
• While it can help with utilization and debt payoff, the overall impact on the credit score is often limited, and it may make payment tracking more complex.
What Is the 15/3 Credit Card Payment Method?
With the 15/3 rule for credit cards, instead of making one payment each month on or near the credit card payment due date, you make two payments every month. You make the first payment about 15 days before your statement date (about halfway through the statement cycle) and the second payment 3 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. At the end of your statement period (usually about a month), the credit card company sends you a statement with all of your charges and your total statement balance. In an ideal situation, you’d then send a check or make an electronic payment to your credit card company to pay off the total amount due.
As an example, say you have a credit card with a $5,000 credit limit, and you regularly make about $3,000 in purchases each month. In a typical situation, you might make an electronic payment for $3,000 to the credit card company at the end of the statement period. But just before your payment clears, you’d have a 60% utilization ratio ($3,000 divided by $5,000), which is quite high.
If you use the 15/3 credit card payment method, you would make one payment (for around $1,500) 15 days before your statement is due. Then, three days before your due date, you would make an additional payment to pay off the remaining $1,500 in purchases. Making credit card payments bimonthly means that your credit utilization ratio never goes over 30%, which is the percentage generally recommended.
Recommended: What Is the Average Credit Card Limit?
Why the 15/3 Credit Card Payment Method Works
When you’re using a credit card, your credit utilization ratio is constantly fluctuating as you make additional charges and/or payments to your account. The 15/3 credit card payment trick works by making one additional payment each month. That additional payment can help lower your credit utilization ratio throughout the month, which can benefit your credit score.
Recommended: What Is a Charge Card?
Reduced Credit Card Utilization Through the 15/3 Method
Even if you regularly pay your credit card balance in full each and every month, you may still be carrying a balance throughout the month as you make charges. Because your credit utilization is calculated throughout the month, if you rack up a large balance from your purchases, your credit score may be affected, even if you pay off your credit card bill in full at the end of the month.
When Does the 15/3 Credit Card Payment Method Work?
While there’s no harm in making two payments each month, most people who are already paying their credit card balances in full each month are unlikely to see a significant benefit. One scenario where the 15/3 credit card method might make sense, however, is if you have a low credit limit relative to your overall monthly spending. If you regularly approach or hit your credit limit in the middle of the month, making a payment mid-month may have a bigger impact on your credit utilization ratio and, therefore, your credit score.
Another reason to pay on a bimonthly basis instead of only once a month is if you have outstanding credit card debt that you’re working to pay down. If you make only the credit card minimum payment, you’ll end up paying a large amount of interest before you pay off your balance. By paying every two weeks instead, you end up making additional payments, which can help lower the total amount of interest that you have to pay before your balance is completely paid off.
Recommended: When Are Credit Card Payments Due?
Pros and Cons of Using the 15/3 Credit Card Payment Method
While there are certainly upsides to taking advantage of the 15/3 credit card payment method, there are possible downsides to consider as well.
thumb_up
Pros:
• Can help reduce your overall credit utilization
• Can be useful if you need to build your credit as much as possible because you’re applying for a mortgage or other loan
• Can help you to pay down debt faster
thumb_down
Cons:
• May be harder to keep track of when paying bimonthly
• May not provide much benefit in most scenarios
• Can stretch finances if your income is irregular
Recommended: How to Avoid Interest on a Credit Card
Using the 15/3 Credit Card Payment Method: What to Know
Should you use the 15/3 credit card payment method? Like most financial advice, it depends on your specific financial situation.
In most cases, the 15/3 rule for credit cards won’t provide a ton of benefit and may not be worth the extra organizational and logistical headache. However, it may make sense if you’re paying off existing debt, have a low overall credit limit, or need to build or maintain your credit score for a specific period of time (such as when you’re applying for a mortgage).
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 3 days before the due date. By doing this, you can lower your overall credit utilization ratio, which can help build your credit.
Looking for a new credit card? Consider credit card options that can make your money work for you. See if you're prequalified for a SoFi Credit Card.
FAQ
What is the 15/3 rule in credit?
Most people usually make one payment each month, when their statement is due. With the 15/3 credit card rule, you instead make two payments. The first payment comes 15 days before the statement’s due date, and you make the second payment three days before your credit card due date.
How do you do the 15/3 payment?
When you do the 15/3 credit card payment hack, you simply make an additional payment to your credit card issuer each month. Instead of only paying at the end of the statement, you make one payment about halfway through your statement (15 days before it’s due) and a second payment right before the due date (three days before it’s due).
Does the 15/3 payment method work?
The 15/3 method may be used to help build your credit score, but in most cases, you won’t see much impact from using it. Your credit utilization ratio is only one factor that makes up your credit score, and making multiple payments each month is unlikely to make a big difference. One scenario where it might have an impact is if you have a relatively low overall credit limit compared to the amount of purchases you make each month.
Does it hurt credit to make multiple payments a month?
While most people won’t see a major benefit from using the 15/3 payment method to make multiple payments a month, it won’t hurt, either. There isn’t a downside to making multiple payments, other than making sure you have the money in your bank account for the payment and can handle the logistics of organizing multiple payments.
Photo credit: iStock/Vladimir Sukhachev
SoFi Credit Cards are issued by SoFi Bank, N.A. pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
SOCC-Q226-001