The Impact of New Credit Cards on Your Credit Score

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Understanding the 15/3 Credit Card Payment Rule

At O1ne Mortgage, we prioritize educating our clients about consumer credit and finance. This article aims to provide an objective view to help you make informed decisions. For any mortgage service needs, feel free to call us at 213-732-3074.

What Is the 15/3 Rule?

The 15/3 rule suggests that making two credit card payments each month can improve your credit scores. The idea is to:

• Make a payment 15 days before the bill’s due date.
• Make another payment three days before the due date.

For instance, if your bill is due on the 15th and your balance is $2,000, you would pay $1,000 on the 1st and the remaining $1,000 on the 12th.

How Does the 15/3 Credit Card Payment Work?

Proponents of the 15/3 rule claim it helps in two ways:

• Increases on-time payments (incorrect): Most card issuers report once a month, so making multiple payments won’t change your account status.
• Lowers credit utilization (partially correct): Paying down your balance early can lower your credit utilization rate, but the specific 15/3 timeline may not be effective.

Pros and Cons of the 15/3 Credit Card Hack

Pros

• Helps track balance and payments: Regular monitoring can prevent overspending and late payments.
• Reduces interest accrual: Paying down your balance early can decrease interest charges.
• Aids biweekly budgeting: Easier to manage payments if you get paid twice a month.

Cons

• No impact on payment history: Your credit report will only show one account status per month.
• May not lower utilization rate: Payments need to be made before the billing cycle ends to affect your utilization rate.
• Adds complexity: Managing multiple payment dates can be challenging.

Should You Use the 15/3 Hack?

While the 15/3 hack isn’t harmful, there are simpler ways to manage your credit card:

• Use autopay or alerts: Set up autopay to avoid missed payments or use alerts for due dates.
• Pay down balances before the statement date: Aim for a low utilization rate by paying early.
• Make frequent payments: If carrying a balance, make more frequent payments to minimize interest.

Tips to Build Credit

• Pay bills on time: Consistent on-time payments improve your credit.
• Maintain a low credit utilization rate: Keep your utilization rate low.
• Use different types of credit: A mix of loans and credit cards can help.
• Add alternative data: Use services like Experian Boost to add eligible payments to your credit report.

Monitor Your Credit for Free

Track your progress with a free Experian credit report. Members receive FICO® Score tracking and real-time alerts about important changes. For personalized mortgage services, contact O1ne Mortgage at 213-732-3074.

For more information and personalized mortgage services, call O1ne Mortgage at 213-732-3074. We’re here to help you navigate your financial journey.

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