Keeping track of your credit card payments is important. Not only will it reduce the risk of incurring penalties or losing your eligibility for new credit, but it’s also essential to establishing a strong credit history and score. For many people, using credit cards as a means of payment is an excellent way to establish and build upon a positive financial reputation.
For others, however, this may not be the case. If you struggle to stay organized, are prone to procrastination, or have too many bills competing for your attention on any given day, managing your credit card payments can be challenging. If you find yourself with outstanding payments on your credit cards more often than not, here are three ways you can stay on top of them more effectively in the future.
According to SoFi, “Even if you want to live a largely credit-card-free lifestyle, having a solid credit history is helpful. If you ever want to take out a mortgage or finance a car, a good credit score might help you secure better terms and lower interest rates—while a poor one can keep you locked out of those financial products entirely.”
Set up automatic payments
Credit card companies have a vested interest in ensuring their customers pay on time and in full. This is why many will allow you to set up automatic payments from your account, allowing you to set aside the funds at the beginning of each month, ensuring they are available when payment is due. If you find yourself struggling to keep up with payments, this might be the solution for you.
Check with your card provider to ensure there are no monthly fees. If you opt for automatic payments, make sure you factor this into your monthly budget. This way, you will be less likely to underestimate your expenses and be better prepared should you encounter an unexpected financial shortfall.
Track your payments in your calendar
Whether you choose to pay your credit card bills manually or make them all automatic, a calendar is a good place to keep track of all your payments. This can help you avoid late fees and missed payments, two of the most common and costly mistakes regarding credit card usage.
Separate your credit card payments by type or creditor to stay on top of due dates. Some people keep a running calendar of all their bills in the same place, which is another option.
Set reminders for bill due dates
when is my credit card bill due? You can set reminders for bill due dates in a notebook, your calendar, or even a recurring entry in your to-do list or planner. Alternatively, you can also set up automated alerts or reminders for yourself, either on your computer or smartphone.
Credit cards can be an excellent way to boost your credit, earn rewards and even help you build your credit history. But if you don’t stay on top of your payments, you are putting yourself at risk of incurring late fees, lower credit scores, and missed payments that could lead to future problems, like getting denied for new credit cards.
However, keeping on top of your credit card payments doesn’t have to be a difficult or burdensome task. By setting up automatic payments, tracking them in your calendar, and setting reminders for due dates, you can easily stay organized and on top of your finances without sacrificing your sanity in the process.