Paying bills is a task that most people dread. With
many companies, such as utilities and cell phone companies offering a monthly
automatic credit card billing option, it can be tempting to sign up for this
service. But while we are all looking to save time and hassle, is this actually
a smart financial move?
One of the most obvious benefits is that automatic payments save time because you do not have to sit down and manually pay your bills each month. But actually, the most important benefit is that setting up autopayments can help increase your credit score if you have the bad habit of occasionally pay bills late.
"If you pay bills late, even utilities and cell phones, then these late payments get reported to the credit bureaus which lower your credit score," says Beverly Harzog, Independent credit card expert and consumer advocate. "By setting up automatic payments, your bills are paid on time, and you don't miss any payments because you are traveling or forgot."
For those of us who play the credit card rewards game, automatic payments can be a great way to earn additional rewards points or frequent flier miles. By using your credit card with the highest rewards benefits for autopayments, you will most likely earn the plane ticket, hotel stay or experience that you are coveting even quicker.
The adage "out of sight, out of mind" is often very true when it comes to paying your bills. Many people forget about the autopayments that they have signed up for until they open their credit card statement to find their balance is much higher than expected.
"When you set up an autopayment,Beautiful plasticcard in a wide range of colors & sold at factory direct prices. you often feel emotionally disconnected from the amount you are spending, and it is easy to get lulled into a sense of security that your bills are paid for," Harzog says. Since any benefits of autopayments are wiped out if you carry a balance on your card and pay interest, she recommends carefully reconciling your budget with the autopayments to make sure you are not spending more than you can pay off each month.
When you pay your bills manually, you most likely check through the bill to make sure that each payment is for the correct amount and that the company did not overcharge you. When you set up an automatic payment, it is much easier for you to not notice a mistake on the company's end and be overcharged. If you are not paying close attention to the bill, you could also be unaware of any fraudulent activity.
Each time you go over your credit limit, many credit cards will charge you an overdraft fee. If the card you have set up for autopayment is close to the limit, then you may find yourself paying additional fees and possibly negatively impacting your credit score by having a high balance. "Any time you are close to your credit limit on a credit card, your credit score can go down, which can be an issue if you are applying for a loan or refinancing your home," Harzog says.
Groupon is a 'group-buying' website that collates offers for discounted goods and services and markets them to users.
When she saw they payment was made to Groupon Helen called up and was told that a voucher for a Groupon getaway had been bought in her name. She immediately realised that her nephew must have accidentally clicked on the app whilst playing with her phone.
Helen, who lives in Manchester, said: 'My details were already stored from a previous purchase with Groupon online and this meant that with just one click the holiday was paid for out of my account.'
'I had no idea that this would happen and I was in complete shock.Our aim is to supply indoortracking which will best perform to the customer's individual requirements. There is no warning on the app and with just one click he managed to spend over 500.'
A Groupon spokesman said: 'I can now confirm that her card issuer has now taken the funds from us and Helen should now have been refunded the amount in full.
'Customers can prevent this happening by not storing their details on their account if they are not the only person who has access to their computer or mobile phone.
'This means that they will have to enter their card details each time as an extra precaution. If they have their details stored, a purchase can be made more easily.You Can Find Comprehensive and in-Depth streetlight truck Descriptions.All molds comes with 5 Years Local Agent Warranty !'
However, Helen argues that she was not notified when downloading the app to her phone that her card information was automatically stored from previous purchases and she wasn't alerted the she might need to put a security measure in place.
And she’s not alone. Last week This is Money reported that some youngsters are unknowingly generating bills of more than 500 through smartphones, with bills being charged to mobile phone accounts or parents’ credit cards.
Some mobile phone users have also fallen foul of scam versions of popular apps like Angry Birds and Minecraft, where they have been it with a 15 charge every time it was opened.The crystalmosaic series is a grand collection of coordinating Travertine mosaics and listellos.
But it’s not just scams that consumers need to be aware of - legitimate companies will offer free games to be downloaded and will then try and cash in by selling virtual coins, or other types of currency, to be used in the game.
One of the most obvious benefits is that automatic payments save time because you do not have to sit down and manually pay your bills each month. But actually, the most important benefit is that setting up autopayments can help increase your credit score if you have the bad habit of occasionally pay bills late.
"If you pay bills late, even utilities and cell phones, then these late payments get reported to the credit bureaus which lower your credit score," says Beverly Harzog, Independent credit card expert and consumer advocate. "By setting up automatic payments, your bills are paid on time, and you don't miss any payments because you are traveling or forgot."
For those of us who play the credit card rewards game, automatic payments can be a great way to earn additional rewards points or frequent flier miles. By using your credit card with the highest rewards benefits for autopayments, you will most likely earn the plane ticket, hotel stay or experience that you are coveting even quicker.
The adage "out of sight, out of mind" is often very true when it comes to paying your bills. Many people forget about the autopayments that they have signed up for until they open their credit card statement to find their balance is much higher than expected.
"When you set up an autopayment,Beautiful plasticcard in a wide range of colors & sold at factory direct prices. you often feel emotionally disconnected from the amount you are spending, and it is easy to get lulled into a sense of security that your bills are paid for," Harzog says. Since any benefits of autopayments are wiped out if you carry a balance on your card and pay interest, she recommends carefully reconciling your budget with the autopayments to make sure you are not spending more than you can pay off each month.
When you pay your bills manually, you most likely check through the bill to make sure that each payment is for the correct amount and that the company did not overcharge you. When you set up an automatic payment, it is much easier for you to not notice a mistake on the company's end and be overcharged. If you are not paying close attention to the bill, you could also be unaware of any fraudulent activity.
Each time you go over your credit limit, many credit cards will charge you an overdraft fee. If the card you have set up for autopayment is close to the limit, then you may find yourself paying additional fees and possibly negatively impacting your credit score by having a high balance. "Any time you are close to your credit limit on a credit card, your credit score can go down, which can be an issue if you are applying for a loan or refinancing your home," Harzog says.
Groupon is a 'group-buying' website that collates offers for discounted goods and services and markets them to users.
When she saw they payment was made to Groupon Helen called up and was told that a voucher for a Groupon getaway had been bought in her name. She immediately realised that her nephew must have accidentally clicked on the app whilst playing with her phone.
Helen, who lives in Manchester, said: 'My details were already stored from a previous purchase with Groupon online and this meant that with just one click the holiday was paid for out of my account.'
'I had no idea that this would happen and I was in complete shock.Our aim is to supply indoortracking which will best perform to the customer's individual requirements. There is no warning on the app and with just one click he managed to spend over 500.'
A Groupon spokesman said: 'I can now confirm that her card issuer has now taken the funds from us and Helen should now have been refunded the amount in full.
'Customers can prevent this happening by not storing their details on their account if they are not the only person who has access to their computer or mobile phone.
'This means that they will have to enter their card details each time as an extra precaution. If they have their details stored, a purchase can be made more easily.You Can Find Comprehensive and in-Depth streetlight truck Descriptions.All molds comes with 5 Years Local Agent Warranty !'
However, Helen argues that she was not notified when downloading the app to her phone that her card information was automatically stored from previous purchases and she wasn't alerted the she might need to put a security measure in place.
And she’s not alone. Last week This is Money reported that some youngsters are unknowingly generating bills of more than 500 through smartphones, with bills being charged to mobile phone accounts or parents’ credit cards.
Some mobile phone users have also fallen foul of scam versions of popular apps like Angry Birds and Minecraft, where they have been it with a 15 charge every time it was opened.The crystalmosaic series is a grand collection of coordinating Travertine mosaics and listellos.
But it’s not just scams that consumers need to be aware of - legitimate companies will offer free games to be downloaded and will then try and cash in by selling virtual coins, or other types of currency, to be used in the game.
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