Benefits of Paying Bills on Time
Posted on: November 15, 2017
HOW TO SAVE MONEY AND PAY BILLS ON TIME
When it comes to paying bills, the saying “better late than never”, doesn’t exactly hold true. While you should always pay your bills even if they are beyond the due date, paying bills late on a frequent basis could be detrimental to your quality of life.
BENEFITS OF PAYING BILLS ON TIME
- No More Late Fees. It is easy to make a habit of paying bills late, but beware because it becomes a very slippery slope for most people. Sometimes you may not have the means to pay a bill by its due date, but waiting can cost you more than you originally owed. Make sure you are aware of each company’s policy for late payments.
- Credit Score. You get rewarded for paying your bills on time, especially with credit cards. Having a strong credit score gives you more financial power. This makes future loans much easier to obtain. Your credit score is a measurable way for lenders to determine if you are trustworthy and dependable enough to receive a loan. If you do not have a good credit score, you can expect to pay for everything on your own and in a cash form.
- Ownership. A strong financial history increases your chances of obtaining assets. Failure to make payments could result in the loss of your belongings. Mortgage and auto lenders place a high importance on your credit and FICO score but also look closely at your bill paying history. If you do not keep a good record, your chances of ownership become very slim.
- Interest Rates. Credit card companies calculate interest based on the average daily balance. That means the higher your balance is, the more you will pay in interest. Although making the minimum payment each month will protect your credit score, it will increase your interest rate and cause you to take even longer to pay off your debt. This is ultimately a viscous, never-ending payment plan that you should be avoided at all costs.
DO YOU NEED HELP WITH BILLS?
Sometimes, when the unexpected happens, making ends meet can become an impossible task. If you’re currently in a tough financial spot, consider applying for a CashMax loan.