Paying My Credit Card Bill Just Got Easier!

I’m such a nerd sometimes!

I just got excited that my credit card company introduced autopay.

I’m not even sure if I’m late to the party or not, I don’t care…

Why? Well now our finances are on 100% auto pilot!

See we use a credit card for 100% of our purchases. I used to have to go in every month to pay it off in full.

*Side-note: I am a firm believer that you should never pay interest on a credit card.  Do not use credit cards  unless you have the discipline to budget properly and control your spending.  Think of it this way, will you use a gun without a lesson? Would you go swimming without knowing how to swim?

Anyways…

When you pay your credit card off in full every month you avoid interest, but you also get the luxury of using the perks of a credit card.

 

What luxuries am I speaking of?

 

    • Unlimited miles and miles that never expire
    • Redeem miles for any travel expenses
    • 0% foreign transaction fees
    • Free extended Warranty
    • Free Purchase Security
    • 250,000 Travel accident insurance
    • Access to advance ticket sales
    • Auto Rental Insurance
    • Lost Luggage Reimbursement
    • Concierge Service
    • 0% Fraud Liability
    • 45 day grace period (The main reason you want to use the credit card)

 

Why is being on auto-pilot so important? It’s easier to stick to the game plan when things are on auto-pilot. You’re more likely to reach your goal and avoid mishaps.  I know we all like to think we will never forget to pay a bill, but why chance it?  Life is so much easier when you set and forget it.


 

Auto Pilot (AutoPay) is the new normal!

 

A good example of the benefits of financial autopay is how you pay your taxes. Imagine, if the IRS waited until April 15th before levying taxes on you. Most people would have an heart attack, but since taxes are levied per paycheck you can manage your tax liabilities a bit better. Of course the self-employed people are turning their noses up because they pay quarterly, but you get my point.


The same thing can be said for bills.  Autopay just makes your life easier

Everything should be on auto-pilot..especially retirement and savings, so why not bill payment?

For those of you, who are wondering what kind of credit card I use.  My weapon of choice is the Capital One Venture Card.

I even got this cool email for setting up the auto-payment:

 

We want to remind you that you have an AutoPay payment scheduled on MAY 25, 2012 for your Capital One® Visa Signature credit card. Remember, you have authorized the statement balance payment option.

If you make additional payments to your balance outside of your AutoPay series, your AutoPay payment amount may change because we won’t process a payment for more than what you owe. Should your balance be paid off in full on your scheduled AutoPay date, we won’t process a payment at all.

If you would ever like to edit or cancel your AutoPay service or this payment, just log in and update your AutoPay preferences.

Thanks for choosing Capital One.

 

What’s your credit card of choice and why?  Explain why you do or don’t autopay your credit card?

 

 

Comments

  1. I’ve done this for a long time and it’s always seemed to work well. Earning cash back for doing it is also a big plus. As an added bonus, I find that I’ve save a lot of money by getting ride of late fees.

  2. Hey D, Very convincing. I just redeemed $200 of Amazon gift cards from my rewards on my Chase Visa credit card. I bought my mom a gift with part of the cash and the rest is there to be used whenever, the cards never expire. I always pay in full!!!! Except once when I lost the bill. Now, I do auto pilot as well. I don’t do all my bills on auto because I like the attention to paying them and keeping mentally aware of what I’m spending.

    • I do everything on auto pilot and review each transaction every week via Yodlee. It’s pretty simple this way, especially when I ‘m spending according to my spending plan anyway. For double protection I get the bills sent to my email and cellphone via text alerts.

  3. I'm scheduled to have my e-fund together next week, after that I'll work on a buffer in my chequing which means I'll be able to set up autopay for my creditcard, after that the only thing left to automize is my electric bill. Woo! It's nice, all I have to worry about is making sure the money is there… and everything is paid on time, every time!

  4. Good thing that paying credit card bill is now very much easier, no hassle anymore. Autopay is a good idea to pay credit card bill easier.
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  5. I am not a fan of autopay. If my credit card expenses are predictable and consistent, I could budget so that I'll always have enough money in my checking account when it's time for the autopay. But with expenses varying so much from month to month, i would be risking overdraft on my checking account if I didn't have full control of when to make the payment every month. Sometimes, waiting a few extra days for my paycheck to clear makes all the difference when dealing with potential overdraft.
    My recent post What To Do When Friends Ask For Money

    • URFinanceSimple says:

      Charles. I understand you dilemma. Fortunately for us, the possibility of overdraft is very low.Some of my expenses are are variable, but not enough to force me to ever overdraft. If I was ever in an overdraft situation, I would transfer money from my emergency fund to cover me.Do you have an emergency fund? How many times have you over drafted in the past 2 years?

  6. Enjoying the videos-good job.
    What happens if you dispute a charge and it's been auto-paid before you notice the charge wasn't yours?

    My wife scans our bill before she does online bill pay, and I use an American Express Delta card- being in Georgia we say even if you are going to heaven you have to change planes in Atlanta…
    My recent post Nurses, Networks and Entrepreneurs

    • URFinanceSimple says:

      If you dispute a charge and it's been auto paid they will credit your account.

  7. addvodka says:

    That's awesome! I didn't know you could do that – it makes it a lot easier. I don't think I can do that with my credit card yet, but hopefully one day. I do the same thing – I have a rebate card, so I buy absolutely everything on my credit card and pay it off at the end of the month. The only problem is that I've forgotten before and it's accumulated interest. It's a bit pet peeve of mine!
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