Why You Should Set Up Auto-Pay for Your Bills
Bills. They’re something we all have to deal with, whether we want to or not. While there’s little that will change that simple fact, there is one way you can make the process a little more manageable. Setting up auto-pay on your service accounts will take some of the inconvenience out of paying your bills. While nothing’s going to change the fact that you’re still giving money away, using auto-pay has some pretty nice advantages that make it worth looking into.
Set It and Forget It
For most folks, convenience is the biggest benefit of auto-paying their bills. When you’re paying your bills manually, you have to drop everything and pay your bill when you get it, or you have to set it aside and be really good about making sure you get to it later. Setting up auto-pay removes this obstacle, so you can go about day without fewer pesky interruptions and to-do notes.
Manage Your Finances on Your Time
When you set up auto-pay, you no longer have to devote any brain power to getting those bills paid. Still, it’s usually a good idea to take a look at your finances regularly. Whether it’s week by week or once a month, you get to choose when you manage your finances. You no longer have to open up the checkbook whenever a bill comes in the mail.
No Late Fees
Another big advantage of setting up auto-pay for your bills is that you lower–and in most cases, completely eliminate–the possibility of paying your bills late. In fact, since the creditor is likely charge your account as soon as the bill is issued, you’ll likely be paying as quickly as possible, which is probably even faster than if you were to be paying manually.
Better for Your Credit
Besides the lack of late fees, there’s one other big benefit to making sure your bills are paid on time each month: your bills won’t negatively affect your credit score. Even if you aren’t planning on using credit any time soon, it’s always a good idea to keep the best score you can. Missing a few payments because you set a bill aside and forgot to pay it will ding your credit score, affecting your future interest rates and even your ability to take out loans.
Less Paperwork to Deal With
Chances are that if you’re setting up auto-pay, you’re doing so online. When you use the internet to pay your bills, everything will be in one place and you won’t be forced to keep a paper trail at home, freeing up space and making it easier to search for a specific bill later on. While you might be wary of using the internet to pay your bills, all reputable services are going to use safeguards to protect your financial information.
Auto-paying your bills doesn’t benefit only you; it’s also good for the company you’re paying. That’s why many companies will offer an incentive to customers in order to coax them into setting up auto-pay with their accounts. While these perks will vary from company to company, they might include anything from service credits to discounts on your bill.