![]() Having a bill-paying routine to follow can take some of the stress out of the process. If you're struggling with how to pay bills on time, creating an organized plan can help. Cash isn't a secure option for paying bills by mail, however. For example, if you'd rather pay your electricity bill in person, you could pay with cash. Cash is one more option for making bill payments. You can purchase money orders at gas stations, grocery stores, or the postal service. Money orders work like cash, but they're more secure than cash payments. If you don't have a bank account, you might use a money order to pay bills. You can schedule one-time or recurring payments to each of your billers through the app. Bill-pay apps link to your bank account and allow you to pay all of your bills electronically in one place. That’s convenient if you'd rather not have to keep up with due dates each month. You can schedule one-time bill payments or recurring payments, so that bills are paid automatically. Many banks offer online bill payment services allowing you to pay bills from your checking account. The key is paying the balance in full otherwise, your bills could cost more once interest charges are added. Credit cards also enjoy greater fraud protections than debit cards. You can charge all of your monthly bills to the card, then pay the balance off at the end of the month. Credit cards are a convenient way to pay bills. This can make record-keeping much easier. When you pay by debit card, your money is deducted immediately from your bank. Paying bills with a debit card is as simple as calling the biller and providing your debit card information. For example, if you pay a local company for lawn-care services, they may prefer check payments versus credit or debit cards to avoid payment-processing fees. And you might have some accounts that can only be paid by check. ![]() Writing checks might seem old-fashioned, but plenty of people still pay bills this way. Some of the different ways to pay bills include: Choosing the right payment method for you comes down to what kind of bills you have to pay and how you prefer to manage your finances. There are lots of options for how to pay bills. Even if you can avoid late fees or credit score damage, your billers aren't likely to appreciate your tardy payment habits. Paying bills late doesn't benefit you in any way. You'd have to pay the bill to have service restored and you might be charged a reconnect fee in the process. For example, if you fail to pay your electric or internet bill on time, your service provider could cut you off. Paying certain bills late could result in a suspension of your account. The more often you pay late, the more of your hard-earned money you're likely to hand over in fees. Aside from potential credit score damage, paying bills late can cost you if you're being hit with fees. ![]() (That's a special rate the credit card company can charge if you miss a payment.) Penalty rates can easily approach 30%, making carrying a balance on your card month to month much more expensive. Paying credit card bills late could lead to a higher annual percentage rate (APR) if your card issuer applies a penalty interest rate. Paying late may trigger a penalty APR.A lower score can make it harder to get approved for new loans and lines of credit. Paying on time can help your score, while paying late can cause your score to drop. Payment history accounts for 35% of your FICO credit score. Credit scores are a measure of how responsibly people use credit. There are a few reasons why it's essential to make bill payments on, or before, the due date: Bill due dates are not suggested time frames for paying they're the latest date the biller expects you to pay. The due date should be printed somewhere on the bill. When a biller issues a bill to you, there's usually a due date that you need to pay by. Creating a simple system for how to pay bills each month can save you time and (potentially) money, too. The good news is that handling bill payments doesn't have to be a hassle. Rent or mortgage payments, utility bills, and credit card bills won't just go away, after all. Paying bills may not be your favorite task, but it's not one you can afford to skip.
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