Set autopay to the full statement balance on every card so you never miss a payment or pay interest. Keep enough cash in your bank account, and pair autopay with small regular charges so unused cards stay active.
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One missed credit card payment can cost you a late fee, a penalty interest rate and, if it's 30 days late, a mark on your credit report that can stay for seven years. All for something as simple as forgetting a due date.
Autopay fixes that. Set it up once, and your card gets paid every month without you lifting a finger. Here's how to set it up, which payment option to choose, and the few mistakes to watch for.
What is credit card autopay?
Autopay is an automatic payment you schedule from your bank account to your credit card. Each month, on or before the due date, your card issuer pulls the amount you chose. Most issuers let you choose from three options:
- Minimum payment: just the minimum due.
- Statement balance: the full balance on your latest statement.
- Fixed amount: a set dollar amount you choose.
Statement balance vs. minimum payment: which should you choose?
Choose the full statement balance whenever you can. Here's why:
| Option | Avoids late payments? | Avoids interest? | Best for |
|---|---|---|---|
| Statement balance | Yes | Yes, if paid in full by the due date | Anyone who can pay in full |
| Minimum payment | Yes | No, interest builds on the rest | A safety net if you pay more manually |
| Fixed amount | Only if it covers the minimum | Only if it covers the full balance | Budgeting a payoff plan |
Paying the statement balance in full means you generally won't pay interest on new purchases, thanks to your card's grace period. And it builds the same positive payment history as any other on-time payment. You don't need to carry a balance to build credit.
If you can't always pay in full, set autopay to the minimum as a safety net, then pay extra manually. That way you never miss a due date, even in a tough month.
How to set up credit card autopay
The exact steps vary by issuer, but they usually look like this:
- Log in to your card issuer's website or app.
- Find payments, often labeled "Payments," "Pay bill" or "AutoPay."
- Link your bank account with your routing and account numbers, if it isn't linked already.
- Choose the amount: statement balance, minimum or fixed amount.
- Choose the date: most people pick the due date; some prefer a few days earlier.
- Confirm and watch for the confirmation email.
Repeat for every card you have, including the ones you barely use. Especially those.
Autopay mistakes to avoid
- Not keeping enough money in your bank account. A failed payment can mean a returned-payment fee from the issuer and an overdraft or NSF fee from your bank.
- Forgetting to update your bank account if you switch banks.
- Assuming autopay is on after a card replacement. It usually carries over, but confirm.
- Never checking your statements. Autopay pays the bill, but you still want to spot errors or fraud.
- Setting autopay to the minimum and forgetting about it. You'll avoid late fees but pay interest.
Pros and cons of credit card autopay
Pros: no missed payments, protects your payment history (the biggest part of your FICO® Score), avoids late fees, and saves time.
Cons: requires enough cash in your checking account, and it can make it easier to ignore your spending if you never look at statements.
For most people, the pros win easily.
Autopay is only half the formula
Autopay makes sure your card gets paid. But if a card is never used, there's nothing to pay, and an unused card can be closed by the issuer for inactivity. That can raise your credit utilization and eventually shorten your credit history. Read more in What Happens If You Don't Use Your Credit Card?
The complete hands-off system is two parts:
- A small automatic charge on each card, so it stays active.
- Autopay for the full statement balance, so that charge is paid on time.
Credicated handles part one. It places a tiny charge on each card on the schedule you choose: Platinum at $0.99 a month, Gold at $1.25 every 3 months, or Silver at $1.25 a year. Your autopay handles part two. Together, every card stays active, gets paid on time, and adds positive payment history that may help your score, without you thinking about it. More ideas in How to Keep a Credit Card Active.
Frequently asked questions
Should I use autopay for credit cards?
For most people, yes. It prevents missed payments, which protects your payment history. Set it to the full statement balance if you can.
Should autopay pay the statement balance or the current balance?
The statement balance is usually enough to avoid interest on purchases. The current balance includes newer charges that aren't due yet.
Does autopay help your credit score?
Autopay itself isn't reported, but on-time payments are. By preventing missed payments, autopay helps you build positive payment history.
What happens if autopay fails?
You may be charged a returned-payment fee and your bank may charge an overdraft or NSF fee. Make a manual payment right away so the payment isn't late.
This article is for general educational purposes and isn't financial advice. Card issuer terms vary, so review your cardholder agreement for specifics.
Autopay makes sure your card gets paid. But if a card is never used, there's nothing to pay.