The 15/3 Hack Could Boost Your Credit Score

If you're looking for a simple way to potentially boost your credit score, you may want to try the 15/3 credit card payment hack. This popular strategy involves making two payments towards your credit card bill each month instead of just one lump-sum payment.

How the 15/3 credit card hack works

You know you need to pay your credit card bill on time, and that you should always pay enough to avoid keeping a balance. The 15/3 rule recommends making an initial credit card payment around 15 days before your statement due date. You then make a second payment about three days before the due date to pay off the remaining balance.

For example, if your statement closing date is the 1st of the month and the payment is due on the 25th, you would make one payment around the 10th and the final payment around the 22nd.

The logic behind the 15/3 hack is that it can help minimize your credit utilization ratio, which is the percentage of your total credit limit being used. Credit utilization makes up 30% of your FICO credit score calculation.

Why the 15/3 hack may help your credit score

When your statement balance gets reported to the credit bureaus, a lower balance (from making that payment around 15 days early) means your utilization will be lower for that snapshot in time. Since utilization has a significant impact on your score, the 15/3 strategy may help keep your credit utilization ratio down and your credit score up.

However, the impact can vary depending on the credit scoring model used and your overall credit profile. Those with higher credit limits may see less of a boost compared to those with lower limits where utilization changes make a bigger difference.

While results aren't guaranteed, the 15/3 hack is certainly worth trying if you're looking for ways to optimize your credit score. It's a simple adjustment to how you make payments, without any cost to you. Just be sure to make at least the minimum payment each month and automate payments if you think you might forget. Consistent, on-time payments are ultimately what matters most for your credit score.