Important Payment Strategies For Setting Up Automatic Payments
FREMONT, CA: Setting up automatic credit card payments can help one avoid late payments, which can help one improve their credit score. Let's look at how to set up automatic payments, what amount one should set it to, and how to use an automatic payment strategy to build and maintain good credit.
How much to commit to an automatic credit card payment
There are various payment strategies for setting up automatic payments:
Setting a specific sum above the monthly minimum payment will help reduce the average balance if you're trying to pay off a credit card balance.
If one normally pays one's credit card's monthly minimum, you can use this choice to help ensure that you don't miss a payment. However, keep in mind that if one uses the card to make purchases, their minimum monthly payment may increase.
Another method for reducing debt and improving one's credit score is to pay off one's entire credit card balance each month. One can stop interest and late fees by paying off their credit card's entire balance every month. Make sure you're using a bank account that will cover the whole amount of one's account when setting up automatic transfers to cover the entire balance.
What to check after setting up one's automatic payments
Are the Due Dates Correct?
One's initial credit card payment dates could simply be the month in which they first opened the account. Consider changing one's payment dates to coincide with their paycheck or other bills now that one is trying to simplify their payments through automation. If one's credit card bill is due at the beginning of the month, along with their rent and other bills, deferring it until the middle of the month might give them some breathing space. One should be able to change their payment date online or by contacting customer service.