5 Smart Reasons to Set Up Automatic Bill Pay
Feeling overwhelmed? Constantly dealing with emergencies? No time for anything but the most urgent tasks on your list? Well, you’re a great candidate for automatic bill pay.
Think about it — setting up automatic bill pay for your critical account payments is like having a secretary who handles all of those tedious and annoying bills. How great is that? And automatic bill pay is a safe and secure way to make sure you never miss another payment.
Still not convinced? Here are five great reasons to set up automatic bill pay and stop worrying about late payments once and for all.
1. It could lead to a higher credit score
Did you know late and missed payments are usually reported to the credit bureaus? Each time this happens, your credit score is probably taking a hit.
With automatic bill pay, you can be sure your credit report lists only on-time payments — your credit score will thank you.
If you don’t know your credit score, you’d be smart to check it as soon as possible.
2. It helps maintain a low APR on your credit card
Late payments to your credit card company can cause them to raise your interest rate — often by a lot.
By setting up automatic bill pay, you can ensure the best possible interest rate by never missing a payment. This can ultimately save you a lot of money, while also saving time.
3. Many apps support automatic bill pay
Several automatic bill payment services offer mobile apps for your iPhone or other smart device. These apps allow you to monitor and track your automatic payments from wherever you are and make adjustments to the payment schedule if you have a financial constraint.
Also, you may want to consider an auto-pay system that requires approval from you before releasing payment.
4. You could see an interest rate reduction
In addition to helping you not miss payments, some financial institutions will actually give you a discount on your loan’s APR if you sign up for automatic bill pay.
For example, you could cut the interest rates on your federal student loans by 0.25 percent simply by signing up for Direct Debit. That might not seem like much, but it could add up to thousands of dollars saved over the life of your loans.
5. It could be used to boost your savings
Auto-pay services don’t have to be just for paying bills either. If you find it difficult to put away money each month into savings, consider setting up an automatic payment to your savings account. It’s a great way to remember to stick some cash away for the inevitable emergencies that arise.
Automatic bill payment services are offered by most banks, credit unions, credit card companies and even independent payment services. They are one of the best ways to organize your finances, save time and money, and ensure you never miss a payment.
They use some of the best security and encryption software available, so you know your financial information is kept safe.
Imagine, no more having to remember what bill is due when. No more nasty phone calls or missed payment notices. With automatic bill pay, you’ll have time to deal with the really important things in life — like where did I leave those car keys?