Instant approval credit card is setting up automatic credit card payments the right choice for you?
When it comes to paying your credit card, you can either manually make the payment each month or set up automatic payments. If you set up automatic payment, you will arrange with your card issuer so that the money is automatically withdrawn from your bank account before the instant approval credit card
If you are considering setting up automatic payments, it is important to consider the pros and cons of this approach before proceeding.
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These are the benefits of automating credit card payments
Here are the main benefits of automating credit card payments.
- You won’t miss any payments. Paying your card on time can help you get a good credit score. Your creditors will report your payments, and an on-time payment record is the most important factor in determining your score. If you set up automatic payments, your card will always be paid on time, so you won’t have to worry about hurting your score by paying late or missing a payment altogether.
- You can make sure that you don’t end up carrying a balance. You can choose to set up automatic payments for the minimum amount owed or your statement balance. If you choose to automatically pay off the entire balance owed, you can make sure you never get stuck paying high rate credit card interest.
- It is more convenient to pay your cards automatically. If you’ve set up automatic payments, you won’t have to worry about sending a check or logging into your account to manually transfer money to your creditors each month. It’s one less financial chore to put on your to-do list.
Here are the disadvantages of automating credit card payments
And here are the downsides of setting up automatic payments.
- You face the risk of overdrafting. If you set up an automatic payment and you don’t have enough money in your bank account to cover it, you could be overdrafted on your account. This could expose you to high overdraft fees charged by your bank.
- You might end up carrying a balance. If you choose to set up automatic payment only for the minimum payment due instead of full payment due, you might end up having a balance unless you manually log in to pay the rest of your bill in full. You might not even realize how much interest you’re paying over time – or how long it takes to pay for your purchases – if you take this approach.
- It is more difficult to keep track of expenses. Manually logging into your credit card account to view your statement and pay your bill is one way to hold yourself accountable and watch what you spend. It’s easier to lose track if you don’t bother to monitor your account and the bill gets paid automatically.
Ultimately, you will need to consider these pros and cons in light of your own financial situation. If you can confidently set up automatic payments for your statement balance each month and know you have enough money in your bank account that overdrafts are never an issue for you, then automatic payments are great. probably the solution.
But if you need more responsibility or want to make sure you check your bank account balance before paying your card, the cons may outweigh the pros, and manually paying your card may be a better thing. choice.