Forgetting to make a credit card payment might seem like a minor mistake, but it can actually have significant consequences, including late fees, higher interest rates, and even a lower credit score. Luckily, there is a simple solution: setting up automatic credit card payments.
Automatic credit card payments are a great way to ensure that you never miss a payment, and they can save you from having to worry about late fees and other penalties. When you miss a credit card payment, you can be hit with a late fee of up to $28 for a first-time offense. And if you're more than 30 days overdue, your credit card issuer may report it to the credit bureaus, which can lower your credit scores. By setting up automatic payments, you can avoid all of these headaches and protect your credit score.
Another advantage of automatic payments is that they can help you manage your credit card balances more effectively. When you make a manual payment, it's easy to forget to pay the full balance, which means you'll be hit with interest charges. With automatic payments, you can set the payment amount to cover the full balance, which will save you money in the long run.
The process of setting up automatic credit card payments varies by card issuer, but it is generally straightforward. You can log in to your credit card account online or through the app and walk through a series of steps to connect a separate bank account and initiate automatic payments from it on a certain date each month. You can typically select to pay the minimum, the full balance, or a specific amount each month. Then, on the date you selected or the due date (which varies by card issuer), the money is transferred automatically from your bank account to your credit card.
One potential downside of automatic credit card payments is that you need to make sure you have enough money in your bank account to cover the payment. If your bank account is low on funds, you could be hit with overdraft fees or have the payment declined. To avoid this issue, make sure you monitor your bank account regularly and adjust the payment amount if necessary.
In conclusion, automatic credit card payments are a great way to save time, protect your credit score, and avoid late fees and other penalties. Try it out today and start enjoying the benefits of automatic payments!
Want to learn other ways to improve your credit score?
Worried about your credit card account getting shut down by the bank?
Check out Credicated, the easy and innovative way to build credit!
