Use Online Bill Pay to Keep Your Payments on Time

Making regular monthly payments on your debts is the best way to improve your credit score, and late payments are the most significant cause of bad credit. That’s why we stress making your payments on time every month as the most important thing you can do to build a positive credit history as you work your way to financial freedom.

Use Online Bill Pay

A great way to ensure that your payments are made promptly every month is to take advantage of online bill pay services from your bank or credit union. Check your bank’s web site and see what kind of online bill pay services they offer. All of the major banks have online banking services, typically at no extra charge.

If your financial institution doesn’t offer online bill payments, consider getting a second account from a bank that does. If possible, have your paycheck direct deposited into multiple accounts; one for savings, one for discretionary funds, and another for paying your bills.

When setting up your online bill payments, you should only need a copy of your monthly bills from your creditors and utility companies. Many of your bills will be paid quickly with direct fund transfers, but a few will probably have to be paid with a paper check from your bank. In those cases, you should set the payments to be sent further in advance to ensure the recipient is able to process them in time.

If you are able to set your recurring payments to be made automatically every month, you’ll have no worries when it comes to making timely bill payments. Given time, this strategy can help you improve your credit, pay down your debts, and manage your personal finances with much less stress.

Get More Help

If you are concerned that you don’t have enough money to comfortably make all of your debt payments, get to a free, confidential credit counseling session from one of our certified debt counselors.

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