Automatic PaymentsAnything worth doing is worth automating when possible. Luckily, most credit card companies now give customers the option to automate their credit card payments to pay their bill each month.

There are a few different ways you can automate your payments:

1. Pay in full – The best way to automate your credit card payments is to do so in full. When you agree to pay in full, your credit card company will request a payment out of your checking or savings account for your total billable balance. The result is that you never carry a balance or pay interest on your credit card.

2. Flat amount – You can also set your credit card to make automatic payments each month in a flat amount. Typically, one might choose to pay $50 or $100 automatically. By automating a small payment each month, you know that you’ll never be charged a late payment fee, or have your interest rate increased because you didn’t pay on time. There is some cause for concern though: in months where you spend less, you might pay your credit card down to a negative amount, meaning the credit card company actually owes you money.

You can schedule automatic payments any time by going online or calling the phone number listed on the back of your credit card. Be sure to keep ample balances in your savings or checking account that you use to pay your bill. If you don’t have enough cash on hand, a series of automatic payments coming through each month may cost you hundreds in overdraft fees from your bank.

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