You're Paying Your Credit Card Wrong

Written By:
Haley Sacks
(aka Mrs. Dow Jones)

You're Paying Your Credit Card Bill Wrong

Yes, you heard it right. If you've been treating your credit card bill like just another monthly task, it's time to rethink your strategy. Let's break down the correct way to handle those credit card payments.

Step One: Sync Up Your Billing Cycles

The first step in mastering your credit card payments is to synchronize all your credit card billing cycles to the first of the month. Most of us have random billing cycles based on when we signed up for a card. But, no more! Get them all synced to the 1st of the month, and you'll thank yourself for the organization.

Step Two: The 15/3 Payment Method

Now, here's the golden rule – the 15/3 payment method. Break down your credit card payments into two intervals. First, pay half your bill 15 days before the statement closing date. Then, clear the remainder three days before the due date. Why? Because this gives the illusion that you're barely utilizing any credit, and that's fantastic for your credit score.

Why It Works

Credit scores love it when you use 30% or less of your available credit – 10% is even better. With the 15/3 method, you're strategically spreading your payments, making it appear like you're using less credit throughout the month. For example, if you have a $5,000 limit and spend $3,000 a month, pay $1,500 15 days before the due date and another $1,500 three days before. This tricks the credit card company into seeing lower credit utilization.

Stay Organized with Calendar Invites

To ensure you never miss a beat, set calendar invites for your payment dates. Staying organized has never been so crucial.

Follow for More Pro Tips

There you have it – the Mrs. Dow Jones-approved method for paying your credit card bill like a pro. Follow for more financial wisdom, and remember, stay rich!

Note: Customize the dates to ensure consistency across all your credit cards.