As you may know the most largest factor in your credit score is the payment history and one of the most common ways people miss their payments and hurt their credit is just by forgetting to make their payment. Not out of any hardship but just out of shear forgetfulness. Everyone has lives that get busy and time consuming and before you know your payment date has passed and that is where the trouble starts. A single missed payment can wreak havoc on your life dropping your credit score and costing you money by way of late fees and increased interest. One way you can avoid this is to set up auto payment from you bank and here is the best way to do that.
Choose Your Payment Date
Whenever you apply for a credit card you are given an arbitrary payment date of their choosing. It can actually land on any day of the money with no rhyme or reason. What most people don’t know, however, is that as long you are on time most credit card companies, mortgage lenders, and even auto companies will let you move that date around. Let’s say you credit card payment is currently set for the 7th but your mortgage is on the 5th and you get get paid on the 1st and 15th. Well it might be beneficial to say move your credit card payment to the 20th so that you aren’t paying both of those bills from the same check. Spreading out your payments around can be key in not accidentally going late and having to play the catch up game.
Call Your Lender and See If They Offer Auto Pay
It is the 21st century and most lenders offer a way to set up automatic payments directly through them. If they do this can be very easy. You should be able to call them on their customer service number or in some case just set up the auto pays online at their website.
Call Your Bank
If for some reason your lender is unable to set up the automatic payments directly through them you can always call your bank and they should be able to set up the payments on the date you select you every single month. All it will take is a call to your bank’s customer service or stop in the branch directly.
Once you have set up your automatic payments you will never have to worry about missing a payment again and you can protect your credit and save yourself from late fees and rising interest rates.