To understand how the 15/3 rule works, let’s look at it in action. Here’s an example of how Jane uses the 15/3 rule to pay her credit card bill.
Jane’s billing cycle: March 15–April 15
Statement closing date: April 15
Due date: May 6
Current credit card balance: $1,000
Jane is trying to build her credit, so she’s looked up her card’s important dates and is ready to use the 15/3 hack to her advantage. She follows these steps:
March 15: Jane makes a payment of $500 (15 days before her statement closing date).
April 12: Jane makes another payment of $500 (3 days before her statement closing date).
April 14: Jane makes a $100 purchase. She now only has a balance of $100 on her statement closing date (the 15th).
April 19: Jane pays her $100 remaining balance on April 19, which means her past balance is fully paid off by the due date.