Expert Credit Building Tips to Boost Your Spending Power (2024)

FAQs

What is the 15 3 payment trick? ›

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 three days before the due date.

When you have excellent credit, it leads to better buying power. Because with quality credit, you're more likely to get better interest rates on loans, which usually means saving more in the long run. Plus, you'll also have a better chance of getting approved for higher loan amounts.

Although it does not impact your credit score, this data will be visible to other companies and may impact your ability to obtain credit from other lenders and the cost of accessing it.

The 15/3 credit hack gets its name from the practice of making your monthly payment in two installments: the first half 15 days before your due date and the second half three days before your due date. This hack, popular on various social media platforms, claims to be a shortcut to good credit.

Your payment history, or how consistently you pay your bills on time, is usually the biggest factor in calculating your credit score. Because it's such an important component, late or missed payments can have a significant overall impact on your score.

Try to channel more of your income away from spending and toward paying down outstanding debt. For instance, hold off on major purchases or make do with your old car a little longer. Check your credit rating.

It can weaken over time due to inflation. That's because rising prices effectively decrease the number of goods or services that one unit of money can buy. Purchasing power is also known as a currency's buying power.

Does spending more money build credit faster? ›

If you want to increase your credit score, though, you need to spend less than 30% of your spending limit. Only use $20 of your credit card limit. Or $15 (if your limit is $100). That shows the credit bureau that you don't need all of their credit.

Pay on Time, Every Time

Your payment history is the most important factor in determining your credit score. Making on-time payments every month is crucial to getting your credit score above 700. If you have some late payments on your credit report, it may make it more difficult to build your credit score.

The 15/3 rule, a trending credit card repayment method, suggests paying your credit card bill in two payments—both 15 days and 3 days before your payment due date. Proponents say it helps raise credit scores more quickly, but there's no real proof.

Fewer interest charges

Credit card companies calculate interest based on your average daily balance. Making a payment halfway through the month could lower this number. When the company calculates your interest, there could be a smaller charge than if you had only made one payment that month.

Helping your credit scores

When you make multiple payments in a month, you reduce the amount of credit you're using compared with your credit limits — a favorable factor in scores. Credit card information is usually reported to credit bureaus around your statement date.