4 Autopay Settings You Must Update Before Your Next Rent Payment
Many of the best ways to save money involve automatic settings where you "set it and forget it." This same concept can apply to your monthly rent check. We found four autopay settings every renter needs to have updated in their account before next month's rent is due.
Update Your Autopay Date
Change your autopay rent date to 48-72 hours after your payday, according to Paul Gillooly, director of Dot Dot Loans.
"Most renters set rent to leave on the first as a habit, even if they get paid after that," Gillooly said. "Adjusting the date on autopay to two to three days after payday helps to not decrease the chance of payments failing and also helps you avoid overdraft fees."
Just make sure you're not paying rent late if that comes with a penalty.
Starting Out? You Can Afford a Mortgage in These 13 Cities on Just $40K
Grow Rich: 9 Subtly Genius Things All Wealthy People Do With Their Money — That You Should Do, Too
Select Confirmation Notices
You paid your rent on time … or did you? If you had a confirmation email, you'd know for certain. Most online rental portals have the option to receive these, so make sure it's active on your account.
"You will receive notifications from the majority of autopay services whether a payment is planned, completed or has failed," said Rajdeep Dosanjh, CEO at Rentround. "Consequently, this results in an increase in responsibility and, if you maintain a balance that is low enough, the avoidance of missed payments."
Create a Rent-Only Account
"Use a rent-only account or virtual divisions," said Gillooly, who added that many digital banks have sub-accounts for rents to draw from.
"This allows you to ringfence your rent money, ensuring that it isn't spent on other things," Gillooly went on to say. "This is especially useful for renters that are trying to improve their credit score, as missing rent payments can hurt your borrowing score."
Maximize Limits and Partial Payments
According to Dosanjh, you should also think about establishing a maximum limit and partial payment reminders in autopay for people who have earnings that fluctuate or who have larger outgoings elsewhere.
"This will allow you to maintain cash on hand for other necessities, such as food, electricity or other necessities, while still ensuring that your monthly rent payment is made," Dosanjh said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: