Creditors, especially banks and credit card issuers, are unbelievably sensitive to whether you pay your bills on time. So is your credit score. One slip-up could cost you dearly if that means you lose your low- or no-interest rate, or a late payment results in a big late fee.
Late payments when reported to the credit bureaus can mean a serious blow to your credit score, which may result in higher insurance premiums now and higher interest rates on your next mortgage. If you’re thinking “domino effect,” you are exactly right. Bottom line: Do not pay late!
An excellent way to make sure you always pay on time—even when you’re on vacation, sick or for some other reason suffer from brain freeze when it’s time to pay bills—is to automate. By putting as many of your payments on auto-pay as you can, you eliminate that monthly decision: Should I pay bills tonight or wait until Tuesday? Should I put money into savings this month or buy those cute shoes?…