With the amount of importance put on credit scores, credit card payment is a vital part of many people’s financial life. Traditional banks have options to set automatic bill pay, and these tools can be of the most convenient and essential available. When considering what tools to use and what not to, make sure to check with your local bank before continuing to a third party automatic bill-pay site. Talk with your bank representative about all the options for credit card payment.
USBank, Chase, and even your local bank will have an option for something called “automatic bill pay”. This feature is a great function for traditional banks, and many times is available with simply a basic checking account. The features of these tools vary by institution, but most allow you to plug in the business name and address of the chosen bill, or simply your account number, and then specify how much you would like to pay per month. This amount can be set for a limited term, or consistently, month-by-month. With options such as online-bill-pay from Chase and other institutions, your credit card payment can become much easier and less time consuming.
A credit card payment that is skipped can lead to penalty rates up to and exceeding 32% of the total of your unpaid bill. A minimum balance payment can sometimes be the solution to this issue, but does still incur interest payments on the rest of the balance. If you can set a default amount you use your card per month, and then set that amount as an automatic payment to your credit card company, you can completely automate your payments and avoid heavy penalty charges.
There are also many online solutions to a payment that ease the stress of monthly payment. FPL is an internet company that aids in the setting of bill payments through your bank account. FPL does require you to submit quite a bit of personal information before being able to access your bank account, so if you would rather not submit such content consider using or paying for the services your local bank offers. FPL allows you to select the day of your bill payment, which can give you flexibility month per month if you deem such a service necessary. This company and others offer a way to turn your checking account into a automated bill-payment center.
Automatic bill payment, however, can be a danger if one is not used to keeping tabs on checking balance. Because online payment is many times automated, payments are taken out even when your balance will not cover said amount. Overdraft fees can be dangerous, so make sure you are prepared to pay the amounts required for your monthly credit card payment. Other dangers in both the normal institutions and internet ventures can be hidden fees for transfers of funds and can add up if not taken care of.
Alternatively, it is possible and even beneficial to pay other bills with your credit card. Automatic payment of bills with your credit card can be dangerous, but is most definitely a plus if taken care of correctly. Giving a business your credit card number gives them the right to pull funds from your account when due. Obviously, this method is just a dangerous as automatic bill-pay without check, but just as beneficial when you do keep tabs on your accounts.
There are several options to credit card payment, and all have their positives and negatives. Be sure to keep tabs on your checking and credit card accounts make sure you pay your bills on time. To make things simpler, set up an automatic bill payment option. Make your payments, build your credit, have a good score.