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The 15/3 Credit Hack: How Does It Optimize Payment Timing?

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Credit Hack

Credit card balances have continuously risen these days amid persistent price pressures and weakening economies. In the United States alone, consumers had a total of $1.142 trillion in credit card balances in the second quarter of 2024, the highest since the New York Fed began tracking them in 1999. 

This situation was taken advantage of by many social media influences. They started making content on different credit card tips and tricks or dos and don’ts, many of which have gone viral on several social media platforms. Among them is the “15/3 credit card payment hack” or simply the “15/3 credit hack.” Let’s talk about this here. 

What is a 15/3 Credit Hack? 

The 15/3 credit card payment hack is essentially a bimonthly payment on your credit card. The first payment, which should either be the minimum amount due or half of your monthly balance, should be made 15 days before the due date, while the second should fully pay the outstanding balance three days before that date, hence the name “15/3.” 

Another variation of it is opting for the statement closing date instead of the payment due date. Note that the former is the date your monthly statement is generated, while the latter is the deadline for your payment that you must meet to avoid any late fees and finance charges. 

Typically, the statement closing date comes three weeks before the due date, which means targeting it could mean making three payments: before the closing date, on the closing date, and before the due date. 

Overall, here’s how to do it:

  1. Check your statement or due date from your credit card statement or online account.
  2. Subtract 15 days from the statement or due date.
  3. Pay the minimum amount due or higher on the statement or due date.
  4. Subtract three days from the statement or due date.
  5. Pay all outstanding balances on that statement or due date, including any new fees or charges made since the previous payment.

Why Does It Matter?

Let’s say your credit card’s limit is $5,000, and your monthly purchase is about $3,000. In most cases, you’ll likely pay $3,000 to your credit card company on or before your statement period. However, although you pay it off, you’ll likely still have a “high” utilization ratio of 60%, which is taken from your total debt ($3,000) divided by your total credit available ($5,000). 

Remember that your credit utilization ratio makes up 30% of your credit score. The rule of thumb is that the lower it is, the better your score. Preferably, it shouldn’t exceed 30%, but it shouldn’t be at 0% as well since it says nothing about your credit habits. To lower it, the most common ways are to increase credit limits or reduce revolving credit balances either by own money or other short-term financing options  from apps like Solo Funds

Applying the 15/3 method can also lower a 60% credit utilization ratio. Note that your credit utilization ratio is calculated based on the balance reported at the end of your statement closing date. Making two payments within your billing cycle then means your balance doesn’t stay high for long, which helps keep your utilization rate low. 

At a glance, this is what your credit utilization will be like using the 15/3 method:

  • Credit Limit: $5,000
  • Monthly Purchase: $3,000
  • Balance after First Payment: $1,500 (utilization is 30% of $5,000)
  • Balance after Second Payment: Close to $0 (utilization drops significantly)

In addition to maintaining a low credit utilization ratio, the 15/3 method can also help improve your credit score by ensuring timely and consistent payments. Besides the credit utilization ratio, credit scores are influenced heavily by payment history (i.e., the record of all your past payments on credit accounts, such as credit cards, loans, and mortgages), which accounts for around 35% of your overall score. 

Since you make payments twice during the billing cycle, you’re essentially building a habit of staying on top of your credit obligations. This consistent payment pattern demonstrates financial responsibility to credit bureaus, which can positively impact your credit score. Additionally, it prevents accumulating a large balance that might be difficult to pay off all at once, further reducing the likelihood of missed payments or late fees, both of which can hurt your score.

Final Thoughts

The 15/3 method optimizes payment timing by strategically spacing out two payments during your billing cycle. This prevents your balance from building up too high, making it easier to manage and reducing the risk of late or missed payments. It also ensures you’re consistently paying down your balance while keeping your credit utilization low throughout the month, optimizing not only your payment schedule but also credit score management.

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How Does Cloud-Based Knowledge Management Software Work?

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Management Software

In the digital era, efficient knowledge management is paramount for organizations seeking to harness their collective intelligence and sustain competitive advantage. Cloud-based knowledge management software provides an agile and scalable solution to capture, store, and disseminate information across an enterprise. These innovative tools have transformed the way companies approach the organization and retrieval of knowledge, leading to more streamlined processes and increased productivity. With the ability to access and manage information from anywhere, cloud-based systems are revolutionizing the way we work. Keep reading to uncover the intricacies and benefits of these systems.

Integrating Cloud-Based Knowledge Management Into Your Business Workflow

Alt text: A professional typing on a laptop, increasing his productivity due to the seamless functionality of cloud-based knowledge management software.

The integration of cloud-based knowledge management software into an organization’s workflow requires strategic planning. It involves assessing the current knowledge-sharing practices, identifying gaps, and determining how a new system can best address these challenges. The goal is to create a seamless transition that enhances rather than disrupts existing processes.

Training and change management are key elements of successful integration. Employees need to understand the benefits of the new system and how to use its features effectively. Instead of being a top-down imposition, the adoption of cloud based knowledge management software should be a collaborative initiative that takes into account the practical needs and insights of the end-users.

Key Components of Cloud-Based Knowledge Management Software

Cloud-based knowledge management software typically consists of several core components that facilitate the effective management of information. A robust content management system (CMS) is essential, providing a structured way to create, manage, and store digital content. Through a CMS, businesses can easily organize knowledge into categories and ensure that the most recent information is accessible to users.

Another key element is the search engine functionality, which enables users to quickly locate specific pieces of information. Advanced search features, such as the use of keywords, filters, and tags, make it possible to sift through vast repositories of data with efficiency. Personalized dashboards and user interfaces are also crucial, allowing users to tailor their knowledge management experience according to their specific roles and preferences.

Collaboration tools are equally important, allowing team members to work together on documents, share insights, and exchange ideas in real time. This fosters a collaborative work environment and ensures that knowledge is not siloed within departments or individuals. Additionally, analytics and reporting features offer insights into how knowledge is used within the organization, aiding in the continual improvement of the system.

The Role of Artificial Intelligence (AI) and Machine Learning (ML) in Enhancing Knowledge Retrieval

In recent years, AI and ML have become integral to the evolution of cloud-based knowledge management software. AI-driven capabilities enable the system to provide personalized recommendations and improve search results based on user interactions and behaviors. This adaptive approach means that the more the platform is used, the more refined and accurate the information retrieval becomes.

ML algorithms analyze user queries and content usage patterns to enhance the accuracy of search functionalities. By continuously learning from new data, ML can identify trends and relationships that humans might overlook, making knowledge discovery more intuitive. For example, the system can suggest related documents or experts within the organization based on the user’s search history.

Natural Language Processing (NLP), a subset of AI, also plays a critical role in understanding and interpreting user queries. This technology allows the system to comprehend the context and intent behind search terms, rather than relying solely on keyword matching. Consequently, NLP can deliver more relevant results even with complex or conversational queries.

Security and Privacy Considerations in Cloud-Based Knowledge Management

Alt text: Collaborative professionals using cloud-based knowledge management software, pointing out features and ensuring efficient workflow on a laptop.

When it comes to managing information in the cloud, security, and privacy are top priorities for organizations. Cloud-based knowledge management software providers must offer robust security measures to protect sensitive data from unauthorized access or breaches. This can include encryption of data both in transit and at rest, secure authentication mechanisms, and regular security audits.

Privacy concerns also necessitate compliance with various data protection regulations like the General Data Protection Regulation (GDPR) and others that vary by region and industry. Knowledge management systems should provide features that enable organizations to adhere to these regulations, such as tools for managing user consent and controls over personal data.

Overall, cloud-based knowledge management systems represent a significant investment in an organization’s intellectual infrastructure. With the right strategy and implementation, they can lead to profound improvements in information sharing, decision-making, and overall business agility. The future of efficient and secure knowledge management lies in the cloud, and businesses that harness these tools will be well-equipped to navigate the knowledge-driven landscape of tomorrow.

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Here’s Why a Virtual Team Building Makes Perfect Sense

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Virtual Team Building

If there’s one good thing that the pandemic brought to us, it’s the realisation of the possibility that a business can run—and succeed—with a remote team. So while the pandemic is already history, a lot of businesses have continued with their remote setup because it works well for them.

If you’re one of these businesses, you should know that managing a remote team doesn’t have to mean skipping on things that you would normally do with an in-house team. One of these is doing a team building activity. But thanks to the best virtual team building companies, this is now becoming a trend, especially with these benefits:

  • You get the opportunity to connect with your remote team.

When was the last time you really talked with the members of your remote team? Chances are, you only really got in touch with them if it was about work. But your conversations shouldn’t be limited to tasks because while they work far from you, you still need to build that connection with them. One of the best ways to do this is through a virtual team building event where you get the opportunity to talk to your remote workers on a more personal level.

  • You get to foster better communication with your remote team.

Communication is a must when you’re working with a remote team because you only rely on virtual meetings and conversations to get things done consistently. This is why it’s very important to invest in virtual team building activities that will help you foster better communication with your team. Give them the chance to talk about the things they love about their work as well as the challenges they face being on a remote setup.

  • You get to build better collaboration among team members.

One of the challenges about managing a remote team is that there may be a lot of awkward energy between team members since they don’t really see each other except for virtual meetings. So, if there are new members of your team or you have new projects in your business, you might notice that there might be issues with collaboration within your team. But a virtual team building can help break the ice and allow your team to work well with each other. This will help you achieve the results that you want and encourage productivity within your business.

Finally, investing in virtual team building activities will help to boost the morale of your remote team and prevent issues like absenteeism that could affect your business in the long run. Although you can’t be together physically, organising activities virtually can make your team members feel valued and allow them to let loose a bit and just have fun in a less serious manner. Remember that you may have only been communicating for meetings or evaluations, so changing up the atmosphere will really be beneficial to your team.

So, if you’re ready to organise your first virtual team building activity, get in touch with us right away!

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Why Accurate Inventory is Vital for Manufacturing Warehouse Operations

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Manufacturing Warehouse

Inventory management is key to smooth operations in a manufacturing warehouse. Accurate inventory helps ensure that products are available when needed and prevents businesses from wasting time and resources.

Inaccurate inventory could cause problems for the entire operation. Understanding why accurate inventory is important is key to running a successful warehouse. Keep reading to uncover all the details.

Avoiding Production Delays

Accurate inventory is essential for preventing production delays. If a company does not know how much product or material it has in stock, it could run out of supplies when they are needed. This could cause workers to stop production and wait for more materials to arrive.

The delays affect production schedules and can cause a company to miss deadlines. In a manufacturing warehouse, where everything depends on timing, accurate inventory is critical. A mistake in the inventory system can cause a serious setback.

Meeting Customer Demands

Accurate inventory is also important for meeting customer demand. Customers expect their orders to be filled quickly and correctly. If inventory levels are off, a company may not be able to provide the products that customers need.

This could lead to backorders or stockouts. Customers might get frustrated and seek other companies to meet their needs. Accurate inventory tracking helps a business avoid disappointing customers and maintain its reputation.

Better Control of Costs

When inventory is tracked properly, it helps a business control costs more effectively. Without accurate inventory, companies might end up ordering too many materials or products that they do not need. This can lead to excess inventory, which ties up money and storage space.

If companies don’t replenish inventory in time, they may run out of supplies. They would need to rush orders, which can be expensive. Good inventory management helps businesses balance supply and demand. It saves money and reduces waste.

Improving the Supply Chain

Accurate inventory is essential for a smooth supply chain. The supply chain depends on reliable information to keep everything moving efficiently. Incorrect inventory tracking can disrupt the entire process. This includes purchasing materials and shipping finished products.

Accurate inventory shows businesses what is in stock and what to order. It helps keep production schedules on track. Proper inventory control helps companies avoid supply chain delays. It also helps maintain good relationships with suppliers.

Supporting Production Schedules

Production schedules depend on having the right materials at the right time. Accurate inventory helps companies follow these schedules. If the inventory system is unreliable, it could cause confusion about what materials are available and when they are needed.

This can lead to missed deadlines and rushed production. Accurate inventory lets companies ensure materials are on hand when needed. Product inventory management is essential for ensuring that a company has the right amount of stock to meet demand without overstocking or running out of items.

Why Accurate Inventory Plays a Vital Role in Manufacturing Warehouse

Accurate inventory is a vital part of managing a manufacturing warehouse. It helps to avoid delays, meet demand, control costs, improve the supply chain, and support production schedules. Accurate inventory is key. Without it, operations can get chaotic. This can lead to costly mistakes and unhappy customers.

For any business that wants to run efficiently and effectively, keeping track of inventory is a must. Expand your knowledge and check out more posts on our blog!

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