Should you make a credit card payment twice a month? (2024)

FAQs

Should you make a credit card payment twice a month? ›

Paying your balance more than once per month makes it more likely that you'll have a lower credit utilization rate when the bureaus receive your information. And paying multiple times can also help you keep track of your spending and cut back on any overspending before you fall into debt.

If you typically carry a balance on your credit card from one month to the next, then making multiple payments during each billing cycle can reduce your interest charges overall. That's because interest accrues based on your average daily balance during the billing period.

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.

Does overpaying your credit card affect your credit? Fortunately, overpaying your credit card won't hurt your credit score. You might know that carrying a balance on your credit card affects your credit utilization ratio — or how much of your credit line you're using.

What is the 15/3 rule? 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. Building credit takes time and effort.

I've gotten into the habit of paying my credit cards off every two weeks, and I recommend this strategy to everyone. While you should always strive to pay your bills in full to avoid interest, this approach is even more impactful for cardholders who carry balances.

While it's perfectly fine to make that full payment once per month, it may be beneficial for your budget and credit score to make several small payments toward your balance instead, as long as they add up to your full balance owed.

Biweekly mortgage payments don't save you money by lowering your interest rate. Instead, they save you money on interest by paying your mortgage off earlier with what adds up to one extra, principal-only payment per year.

Ideally, you should pay off your balance in full, though paying as much as you can above the minimum will help you save money. But don't feel defeated even if you're only able to make the minimum payment each month — you're still ensuring your credit remains in good standing.

Paying your credit card early does not affect your credit score in and of itself, but how it impacts your other finances does. If you pay your bill early and lower your credit utilization from 70% to 30%, that can have a positive impact on your credit score.

What is the credit card double payment trick? ›

Using the 15/3 credit card hack to boost your credit score. The 15/3 credit card hack suggests making two payments per billing cycle: one 15 days before the due date and another three days before.

Instead of proving that you can responsibly pay back what you owe, frequently clearing your balance makes it look like you're not using credit at all. “To build credit, what you want to do is have a demonstrated track record of using credit responsibly, and over time different forms of credit,” McBride says.

With the amount of payments we make every month, it's easy to make a mistake and that could be adding an extra zero to your credit card payment or paying more than you meant to. If this happens there's no need to panic, you'll be refunded the money unless you use your credit card again for more borrowing.

Making all your payments on time is the most important factor in credit scores. Second, by making multiple payments, you are likely paying more than the minimum due, which means your balances will decrease faster. Keeping your credit card balances low will result in a low utilization rate, which is good for your score.

Summarising the three rules to using credit cards like this, Martin shared: “You pay off in full, you never withdraw cash and you don't go over your credit limit.”

Generally speaking, waiting 90 days is a good rule of thumb. However, the amount of time between applications ultimately comes down to factors like your credit score, risk tolerance and each bank's application rules.

One factor they look at is how much credit you are using compared to how much you have available. In the case of a credit card, they look at the balance you owe compared to your available credit. Consistently paying off your credit card on time every month is one step toward improving your credit scores.

Paying off the debt on the card with the highest interest rate first is one method to reduce credit card debt. This is called the “debt avalanche method.” While some advocate for paying off your smallest debt first because it seems easier, you may save more on interest over time by chipping away at high-interest debt.

Paying weekly could be a good idea if your credit utilization has been hurting your credit score, or if you want to better stay on top of your spending. But making weekly payments can be inconvenient, so it's fine if you'd rather stick to paying monthly.