AutoPay refers to an automatic money transfer that is set for a predetermined date. The automatic payment goes toward your bills, so you don’t have to send the money manually.
You can set up AutoPay to handle almost all of your monthly expenses, including your utilities, auto loan, credit cards, and cell phone. You probably can’t help but wonder, “Why is AutoPay so important?” Find out why this is the key to setting you up for financial success.
5 Reasons to Set Up AutoPay
While there are numerous reasons to set up AutoPay, here are the top 5 reasons.
1. AutoPay Saves Time
Manually paying bills is a time-consuming process, even if you do it online. You have to go from website to website, entering your account and payment information. It can take several minutes to make a single payment.
It’s even more time consuming if you pay over the phone. Automated systems don’t work as well as the designers hoped, leaving you repeating account information and wishing for a real person. When you use AutoPay, you don’t invest time in paying your bills. The system handles it for you, freeing up your time.
2. Save Money With AutoPay
Setting up AutoPay is a quick and easy way to save money on your monthly bills. Many companies wave deposits or offer monthly discounts when you sign up for AutoPay. This might come as a surprise, but the reason is simple. When you set up AutoPay, the lender can automatically draft the money from your bank account. That means you’re more likely to pay your bills.
3. Avoid Late Fees
If you forget to pay a bill on time, you’ll likely incur a late fee. Late fees can be $35 or more for a single late payment, and those fees add up. In fact, the average U.S. household pays $132 in late fees a year. Setting up AutoPay is the best way to avoid paying late fees. You don’t have to worry about remembering to pay your bills. Even if you forget, the automatic payment system will remember, allowing you to avoid those expensive late fees.
4. Build Your Credit Score
When asking, “Why is AutoPay so important?,” consider your credit score. Your payment history makes up 35 percent of your credit score. If you miss a payment, the creditor can report it to the three credit reporting bureaus. On the other hand, if you set up AutoPay and build a history of on-time payments, your credit score will increase.
This makes it easier to get favorable terms when you take out credit. A good credit score can even help you secure employment, rent a home, and get better insurance rates. With so many reasons to build your credit, it makes sense to set up AutoPay.
5. Sign Up for Alerts
When you set up AutoPay, sign up for alerts. The company will text or email you a couple of days before withdrawing the funds. When you see the alert, check your account to see if you have enough funds to cover the payment.
If your funds are low, you can request some Instacash from MoneyLion to cover it. With Instacash, you can get a $250 cash advance without paying interest. You don’t even have to undergo a credit check to get the cash.
The process is simple. Download the MoneyLion app and sign up. Link your checking account or open a RoarMoney account and set up direct deposits. The money will go into your account in seconds if needed and can help you cover any upcoming bills with a couple taps on your mobile device.
6. AutoPay Yourself
Have you been trying to build a savings account, but you burn through your paycheck too quickly? You can start building a nest egg by setting up Auto Invest with MoneyLion. You can schedule transfers into a MoneyLion fully managed investment account, and you get to choose the amount. Don’t worry about starting small. Even small deposits will add up over time.
MoneyLion’s investment accounts have zero management fees and no minimums. It’s an easy way to build a personalized portfolio. You can sit back and watch your money grow and begin to safeguard your financial future.
Automate Your Way to Financial Success
When you set up AutoPay, you will save time and money while avoiding late fees and building your credit score. Be sure to sign up for alerts, so you can check your account balance before the payment comes through, and if you’re a little short, request Instacash.
Begin the process by setting up a RoarMoney account. MoneyLion will provide you with a virtual debit card, account number, and routing number the same day you sign up. Use it to set up AutoPay, so you can get on the right financial track.