What Is the 15/3 Rule?

The 15/3 rule is a credit card repayment strategy in which you make 2 strategic repayments: one 15 days before it's due and another 3 days before the bill is due. The idea is that spacing your payments can help your credit score.

However, it's unlikely that this hack will work or improve your credit score. There are many better, more effective strategies and advice out there – and yet, the 15/3 rule remains quite popular.

This article gives a detailed explanation of this "rule," addresses misconceptions about how it helps your credit score, and offers alternative, proven strategies for building a great credit score.

What is the 15/3 rule?

The 15/3 rule is a credit card repayment strategy that became popular on TikTok, where it was widely shared as a financial hack designed to boost your credit score.

The hack assumes that by making 2 strategic credit card payments throughout the month, your credit card lender will make favourable reports to the credit bureaus, and you'll see your credit score go up.

As you'll see in a moment, this hack has some major flaws. But first, here's how it works.

How does the 15/3 rule work?

The exact steps for following the 15/3 rule can vary depending on which influencer you're following. For the most part, here's what's recommended:

• Find your credit card's bill due date. If you have more than 1 credit card, you'll have to keep track of each card's dates.
• Make a credit card payment 15 days before the due date. Some influencers tell you to pay the minimum amount due, while others say you should pay half of your credit card balance.
• Make another payment 3 days before the due date. Again, depending on the influencer, some say to pay the other half of the bill, and others say to pay whatever you can afford.

Credit card utilization

When calculating your credit score, credit monitoring bureaus look not only at your payment history but also at your overall relationship with credit. They'll look at how much access to credit you have.

To determine your credit utilization ratio, credit bureaus consider how much of your credit you've used by making purchases. Your credit utilization is usually expressed as a percentage.

So, if you have a few credit cards that give you a total of $10,000 in credit, and you've already charged $6,000 between them, you'd have a credit utilization ratio of 60%.

Ideally, your credit utilization ratio should be low, as in single digits. When your credit utilization ratio climbs, it indicates that you're taking on more debt than you can pay off, which makes creditors uneasy and less likely to approve you for more credit.

Does using the 15/3 rule help?

The short answer is no, the 15/3 rule isn't actually an effective financial strategy. While it can benefit people who struggle to make regular credit card payments, it doesn't actually game the system to improve your credit score.

This is largely because credit card issuers don't report every payment you make to the bureaus. Instead, they report once a month, usually around the time the statement period closes – not when the bill is due, as the 15/3 rule assumes.

The 15/3 rule doesn't necessarily help you stay out of debt, either, especially if you keep using your cards and don't address your spending habits.

How to boost your credit score

Both credit monitoring bureaus are transparent about what factors they look at when generating your score. Here are the steps you should take if you want to fix a bad credit score:

• Check your credit report - if you spot any mistakes, fix them or dispute them
• Check for credit report errors annually
• Aim for a credit utilization of 30% or less
• Make arrangements and pay down debts
• Maintain good habits going forward
• Get a cell phone with a contract
• Research the best tools for you
• Keep old credit cards open
• Limit your number of credit applications and credit checks
• Get help from a credit counsellor
• Educate yourself in personal finance best practices
• Rebuild your credit with a secured credit card
• Deal with credit delinquencies
• Consider consolidating your debts

Secured credit cards help you build credit, but most don't offer much in the way of insurance or rewards. Since Neo offers secured versions of its regular cards, you can find both rewards and insurance with the Neo Secured World Elite Mastercard – but this card has an annual fee, so make sure you're getting enough value to offset the $125/year cost.

The creditcardGenius algorithm analyzes every credit card in Canada to identify the best secured credit cards.

Pros and cons of the 15/3 rule

While it's true that the 15/3 rule helps you to maintain a regular payment schedule, it does get complicated when you've got multiple credit cards.

Here's a look at the pros and cons of this payment strategy:

Pros of the 15/3 rule

• Can help you stay on top of repayment: If you usually carry a credit card balance, having a plan, even one like the 15/3 rule, can help you do a better job of monitoring and repaying your credit card.
• Can minimize interest: If you use the rule to pay off your card in full, you'll save on interest for the month.
• Your credit utilization ratio may improve: When you pay down debt and don't charge more to your card, you'll have more available credit, so your ratio goes down. That said, you don't have to follow the 15/3 rule for this to happen.

Cons of the 15/3 rule

• It doesn't actually boost your credit score: People who use the 15/3 rule say it improves your score since multiple payments are reported to the credit monitoring bureaus. However, credit card issuers report account activity only once per month.
• It's complicated if you have multiple credit cards: If you have 3 or 4 credit cards, keeping up with each card's statement date to time your 15/3 payments can quickly become overwhelming.
• You'll still be charged interest: Unless you can pay off the entire balance before the billing period ends, you'll be hit with high interest charges. This is especially true if you're only making the minimum required payment.
• The rules' dates are all wrong: The strategy assumes credit card issuers are reporting to credit bureaus on or near the payment due date, but that's not true. Card issuers usually report around the time the statement period closes. So, if you're timing your payment for the due date, it's too late.
• You won't necessarily improve your credit utilization ratio: Paying minimums while carrying a growing balance means lenders will still see you as overextended — regardless of when you pay.

Alternatives to the 15/3 rule

A few of the top alternatives to the 15/3 rule include:

• Scheduling automatic payments
• Making early payments
• Limiting the credit you apply for

If you have trouble remembering to pay your bill, why not set up automatic payments? There's no need to split the payments, either. Just select a payment date, choose an amount to pay or the entire balance, and pick the bank account you want the payment to come from.

You can also make early payments whenever possible. Maybe you prefer sitting down once a week, every 2 weeks, or whenever you get paid. Those are good times to check your budget and work on paying down your credit card balance.

Limiting the credit you apply for will help if you're trying to build your credit score. If you're able to successfully pay off a credit card, don't rush to close the account if it's one you've had for a long time. Doing so will reduce the age of your credit accounts, which is something the credit bureaus consider when determining your score.

FAQ

How do you do the 15/3 payment?

Although exact details vary, most influencers recommend making payments 15 and 3 days before your credit card bill is due. However, the hack doesn't say much about not charging more to your card, so you might struggle to keep your balance low if you're still making purchases.

Does the 15/3 rule work?

No, the 15/3 rule doesn't really work. There's no way to "game" the credit reporting system by making a few payments at certain intervals before your bill is due. Still, the hack could make you more aware of your credit card use, which is a good step.

Does paying a credit card twice a month help credit scores?

No, making 2 credit card payments doesn't necessarily help your credit score, especially if you're still charging purchases to the card. This is because your credit card issuer doesn't report the number of payments you make. Instead, it reports your balance and whether you made a payment on time.

Is it better to pay off a credit card immediately or wait for a statement?

If you have the financial means to completely pay off your credit card, it's better to do it immediately than to wait for your bill. Usually, the bill is issued only after the billing statement period closes. This prevents the balance from being reported to the credit bureaus.

What is the 2-payment credit hack?

The 2-payment credit card hack is the same as the 15/3 rule. You may also see it called the 15/3 credit card payment method, which makes it sound more like a legitimate financial strategy than it actually is.