One of the secret weapons for financial success is automating your credit card bill payment. Embracing this approach offers more than just a tension-free approach to settling your dues, as it can transform your financial landscape.
Around a year back, I finally opted for this scheme as it frees up all my mental bandwidth, allowing me to focus on strategic financial planning rather than the monthly toll of bill payments.
What is Auto-Pay? How does it work?
Also known as automatic payment, it is basically a system that allows individuals to authorize recurring payments for bills without the actual need for manual intervention each billing cycle. These are routine payments that are usually set up with the company receiving the payment, though it’s also possible to schedule automatic payments through an online bill pay service.
Setting up this payment mode involves making arrangements with the bank holding the checking account in order to make the exact payment every single month.
Benefits of Setting up Auto-Pay for Credit Card Bills
- Protect your credit score
A missed payment clearly strikes on your credit score! A single late payment stays on your report for years, and payment history is the most important factor when the score is calculated for obvious reasons. By setting up automated payments, you’ll be stress-free as your money will be received automatically by the card issuer on time every single month.
- Avoid missed payment charges/fees
There are tons of credit card companies, which, for obvious reasons, charge you a fee amount if you miss a payment. This can happen if you haven’t automated the overall process, since one is caught in some work and tends to forget. However, if you’ve made the overall process automatic, the credit card bill payment will always get to where it needs to go on time.
- Convenient
By automating credit card payments, you eliminate the need to manually remember important due dates or even worry about missing payments. So therefore, this type of convenience provides peace of mind, knowing that your bills are taken care of without constant monitoring.
- Enhanced Financial Planning
When you opt for auto-payments, it assists you in creating a more predictable financial plan. This is because you can easily plan your budget effectively by knowing the exact amount that will be deducted from your account on a regular basis. This predictability helps one in managing the cash flow and planning for other expenses much more efficiently.
Which is the best payment app? How to get cashback on credit card bill payment?
Bajaj Finserv! I’ve been using this application for quite a long time now, and believe me, this is one of the best applications ever. It is super easy to use and quite convenient.
I even got a cashback amount from making a payment through their app, and I suggest you use it, too, to make your bill payments before your due date.
Conclusion
Setting up your credit card autopay for your bills has tons of benefits, and you’ll come to many of them once you avail of this feature. With this, you may straighten your doubt of how to credit card bill payment. Moreover, it sorts your financial circle, prevent late payment fines, safeguard your credit rating, and guarantee full payment on your credit card.
