How To Avoid Accidentally Missing Payments That Can Lower Your Credit Score


How To Avoid Accidentally Missing Payments That Can Lower Your Credit Score

Missing a payment, even if it’s unintentional, can put a dent in your credit score. To keep it from happening, here are some tips you can follow to stay on top of those due dates.

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Life can get so hectic sometimes that certain bills can slip through the cracks. Even though you always paid it on time, just one slip-up when paying a bill can affect your ability to secure credit in the future.

Luckily, there are several ways to manage the hassle that comes with multiple bill payments. No matter how busy you are, following these tips can keep your payments on time and your credit score as high as possible.


1. Use auto pay.

There’s no easier way to ensure your bills get paid punctually than by using automatic payments. Just set up auto pay once, and you won’t have to worry about paying that bill on time in the future, as your financial institution will do it for you.

Is auto pay ideal for everyone? Unfortunately, no, since you’ll need a consistent income to ensure you have enough money in your account to pay the bill.

What happens if your balance is too low when that auto pay date approaches? You could get an overdraft, which will result in fees that can hurt your bottom line. You could also fail to make the payment on time due to insufficient funds, which defeats auto pay’s purpose entirely.

While auto pay helps those with hectic schedules to avoid missing payments, it does have a small disadvantage. By not having to worry about a bill once it’s set to be paid automatically, you could develop a habit of not paying manually.

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How could this hurt you? If you get a new account that doesn’t allow automatic payments, you may not pay it until it’s too late since you naturally forgot about it.

2. Change your due dates.

Having multiple accounts to pay with varying due dates can be a nightmare. To avoid this, you can change your due dates to make things a lot less confusing.

What’s a common way to schedule due dates that makes sense? Make them due on the first of the month or right after payday. Doing so can ensure you not only remember when to pay them, but also have the money needed to do so.

What’s another good reason to change your due dates to synchronize with paydays? It makes you more likely to avoid impulse purchases that could leave you without cash to pay bills on time.


3. Close unnecessary accounts.

You may have more credit accounts than you need. If this is the case, you can pay some of them off and close them to make things less confusing. The fewer accounts to pay each month, the less you’ll need to juggle around in your mind.

There’s another benefit of paying off and closing accounts: It can keep your credit score high. Sure, you may not use that credit account and make payments on it to boost your score, but you can still use it to your advantage.

A closed credit account that had a solid payment history will help your score, not hurt it. In other words, don’t be bashful when it comes to decluttering your accounts and only keeping what’s needed.