Should You Automate Your Credit Card Payment?

Credit Cards have made lots of people’s lives easier by giving them the ability to make purchases and pay later for them. The one thing that plays a huge role in your whole credit journey is your credit score and the people who can maintain a good credit score can find the credit cards most advantageous. To achieve and maintain a good credit score, the most important thing is to pay your bills on time as your payment history makes 35% of your credit score. If you are having multiple credit cards, you may sometimes miss making payments on time. To avoid missed payments, autopay can be considered the best way. Now, what is autopay? How you can automate your credit card payments? Keep reading to know the answers to these questions:

What is Automated Credit Card Payment & How It Works?

Automating your credit card payment means setting an amount to be debited automatically every month from your account for the payment of your credit card. You can choose to set a fixed amount to be paid every month on a fixed date or only the minimum amount or the full outstanding. All the major credit card issuers provide their customers with this facility nowadays so that they don’t miss their payments unknowingly. This can easily be done by logging in to your credit card net banking account or by contacting your respective credit card customer care.

Benefits of Automating Your Credit Card Payment

Setting automated payments for your credit cards can make it a lot easier for you to manage one or more cards. Your credit card bill payment process can become hassle-free as you don’t need to remember all the due dates for your bill payment.  Although your card issuers send you a statement every month that reminds you of your bills, the statements can also sometimes be missed between hundreds of emails. Moreover, it can also be a great step towards achieving an excellent credit score as you will never miss payments in case of autopay, which would be a big plus on your credit report. Not only this, but you can also avoid charges like interest, late payment fees, etc, by automating your credit card bill payment.

Points To Keep In Mind

• If you automate your credit card payment, make sure that a sufficient amount is available in your account from which the payment is to be debited. You should try to maintain that amount in your bank account always and if you can’t do that, automating your credit card payment won’t be a good idea for you.
• Make sure to check your credit card statement every month even if you automate your credit card payment as there can be some errors in your statement, such as a repeated transaction, a fraudulent transaction, etc.

Bottom Line

Automating your credit card payment can be a very good idea to manage your credit cards well and not miss any payment. However, you always need to keep the above-mentioned points in mind and if you can do that, you can maintain a good credit score. Even after setting automatic payments, make sure to check your credit card statement every month without fail. If you have any doubts regarding the autopay method, feel free to ask in the comment section below. Also, make sure to share your experience if you have automated your credit card bill payment.