Managing credit card payments can be challenging when balancing multiple bills and due dates. Missing just one payment can lead to penalties, which can accumulate and strain your budget. But there’s a simple way to avoid these fees: set up autopay on your credit card bills.
Autopay is a feature offered by most banks that automatically takes care of your credit card bill on its due date, drawing funds directly from your bank account. It’s a great way to make sure you’re always on time, no matter how busy life gets. Plus, it’s not just about avoiding fees—autopay can also help keep your credit score in good shape since timely payments are crucial for your credit health.
Benefits of Setting Up Autopay
There are many reasons to set up autopay on your credit card, especially if you’re looking to manage your finances efficiently and avoid missed payments.
Also Read: Missed an SIP payment? Here is how it may affect your mutual fund portfolio
Avoid Late Fees and Penalties
One of the biggest benefits of autopay is to help you avoid late payment fees, which can add up quickly. Credit card late fees can vary, depending on your card type and outstanding balance. Missing even one payment can result in additional fees.
With autopay, you’re shielded from these penalties, as the payment is automatically processed on the due date. This is particularly useful if you’re busy, traveling or otherwise unable to manage payments manually each month.
Preserve and Boost Your Credit Score
Your credit score is crucial for availing financial products, from loans to premium credit cards. A single missed payment can negatively impact your credit score, as payment history constitutes a significant portion of the score calculation. Credit bureaus closely monitor your payment behaviour, and timely payments positively impact 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, enabling better access to credit at favourable terms.
Reduce Stress and Save Time
Many credit cardholders experience anxiety overdue dates, reminders, and the fear of missing payments. Autopay takes away this worry by simplifying your payment process. With autopay, you won’t need to track multiple reminders or go through the process of logging in to pay each month.
» Read More
