Managing your credit card payments can be difficult when you’re balancing multiple bills and due dates. Missing even one payment can lead to penalties, which can add up and put a strain on your budget. But there’s a simple way to avoid these fees: set up automatic payment on your card bills. of credit.

Autopay is a feature offered by most banks that automatically takes care of your card bill. of credit on the due date, withdrawing funds directly from your account. banking. It’s a great way to make sure you’re always on time, no matter how busy you are life becomes Plus, it’s not just about avoiding fees – autopay can also help keep your credit score in good shape, as on-time payments are crucial to your credit. health.

The benefits of setting up automatic payment

There are many reasons to set up automatic payment on your card. credit, especially if you want to manage your finances effectively and avoid missed payments.

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Avoid late fees and penalties

One of the biggest benefits of automatic payment is that it helps you avoid late fees, which can add up quickly. Credit card late fees can vary, depending on the type of card and the outstanding balance. Missing even one payment can result in additional charges.

With automatic payment, you are protected from these penalties because the payment is automatically processed on the due date. This is especially useful if you’re busy, traveling, or can’t manage your payments manually each month.

Keep and increase your score. of credit

your score Credit is crucial to benefit from financial products, from loans to premium credit cards. Just one missed payment can have a negative impact on your score. credit, as payment history is a significant part of the score calculation. Credit bureaus monitor your behavior closely. of payment, and on-time payments positively influence your score.

Autopay eliminates the risk of accidental missed payments, helping you maintain a healthy credit history. Over time, this consistent payment record can lead to a higher credit score, allowing better access to credit on favorable terms.

Reduce stress and save time

Many credit card holders experience anxiety over deadlines, reminders and the fear of missing payments. Autopay eliminates this worry by simplifying the payment process. With automatic payment, you won’t have to track down multiple reminders or go through the sign-in process to pay each month. You can focus on the day to day without having to set aside time for financial maintenance. Set it up once and you’re done – autopay takes care of the rest.

Control over payments

One of the best parts of autopay is the flexibility to choose how much you pay. You can set the automatic payment to cover either the minimum amount owed or the total amount owed each month. Paying the minimum ensures you avoid penalties, although you’ll still accrue interest on the remaining balance. Opting to pay off the balance in full each month, however, helps you avoid both interest and fees, keeping your card balance and your finances in check. in good condition.

Freedom to select payment dates

With automatic payment, you can select a specific day for payments to ensure they coincide with your flow. of income. Many people receive their paychecks at the beginning of the month, so setting your autopay to debit payments a few days after payday can help ensure you have enough funds in your account. This way, you avoid both late fees and other charges that could result from insufficient funds.

Things to remember

In conclusion, autopay for credit cards is useful for those who juggle multiple financial obligations or find it difficult to keep track of various due dates. With this simple setup, reduce the risk of non-payment.

(The author is CEO of Bankbazaar.com)

Disclaimer: The opinions expressed are personal and do not reflect the official position or policy of FinancialExpress.com. Reproduction of this content without permission is prohibited.