The theory behind the 15/3 trick is that by making two payments, you're effectively lowering your credit utilization ratio – the percentage of your available credit you're using. Credit utilization is a significant factor in determining your credit score. By reducing your balance multiple times during a billing cycle, the argument goes, you can lower your credit utilization, which can positively impact your score.
Does the 15/3 Trick Really Work?
While the logic behind the 15/3 trick seems sound, the reality is more complex. Here's why:
Credit utilization is calculated at the statement closing date: While making multiple payments might temporarily lower your balance, what matters most is your balance on the statement closing date. If you make a large purchase right after the first payment, your credit utilization might still be high.
Credit scores consider payment history: While credit utilization is important, your payment history is also a major factor in your credit score. Making consistent on-time payments is crucial, regardless of how many payments you make.
Potential for increased fees: Making two payments each month might lead to additional fees, such as overdraft fees or processing charges, which can negatively impact your financial situation.
What You Should Do Instead
Instead of relying on the 15/3 trick, focus on these proven strategies to improve your credit score:
Pay your bills on time: This is the most crucial factor in building a good credit history.
Keep credit utilization low: Aim to keep your credit utilization below 30% for optimal results.
Maintain a diverse credit mix: Having a mix of credit cards, loans, and other credit accounts can positively impact your credit score.
Monitor your credit report: Regularly check your credit report for errors and unauthorized activity.
Limit new credit applications: Too many inquiries can temporarily lower your credit score.
While the 15/3 credit trick might seem like a quick fix for improving your credit score, there's no concrete evidence to support its effectiveness. Instead of relying on this unproven method, focus on building good credit habits over time. By paying your bills on time, keeping your credit utilization low, and maintaining a diverse credit mix, you can improve your credit score in a sustainable and effective way.
Remember, credit building takes time and consistency. Avoid shortcuts and focus on long-term strategies for financial success.
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