4 Credit Card Payment Options That Save Money

Credit card payments can actually end up costing you money. Many people overlook these little fees and end up paying as much as $1000 a year or more in payment fees. Here are some ways you can save money when paying on your credit cards.

Throw Out Your Checks

Writing a check for your credit card payment sounds like a good idea, but it’s really not. Generally when you get your statement in the mail you will only have so many days to have the payment to them before late fees are assessed. While most credit card companies will post your payment as soon as they receive it, some unscrupulous companies will hold the checks for a day or two. Even if you mail your payment to an address in the same city you reside, you aren’t taking processing time in to account. From the time the credit card company receives the payment to the time it is processed and posted to your account can take as much as 3 days.

Not to mention machines will often pull the checks out of the envelopes. Machines aren’t infallible. Checks can be tossed out, ripped, or just not found. With a check that has gone un-cashed you have no paper trail or proof of the payment being mailed.

Just avoid this headache all together by not using checks to pay your credit cards. Look for online options, bank bill pay, or phone payments instead.

Automatic Bill Pay

Chances are your bank offers bill pay options. The bank will make the payment on your behalf every month on what ever day you choose, and just deduct the money directly from your checking account.
Many people don’t realize that the credit card company probably charges you to make a payment through a representative, or even online. These payment fees can be as much as $10. Why is the credit card company charging you to take your money? This doesn’t make sense to most people. The card companies will say it’s because of the convenience associated. But when did it become convenient to pay your bills?

If you set up automatic bill pay through your bank the payment process really is convenient, and the credit card company has to make no effort to accept your payment.

Pay Early

Even if you phone your payment in directly to the credit card company, it can still take a few days to process the payment. Most people assume that if you give them the information for the payment over the phone that the payment should go through right away. The credit card has to contact your bank though to receive the money. The processing time can be a few days. If you are cutting it close and making a payment the day it is due, you can still end up paying late fees and interest. To be on the safe side make sure your payment is being made several days before the due date, at least three.

Use Automated Systems

Whenever possible, choose to use automated systems to make your payment. Whether you are making the payment online, or through the phone, try to not speak with a live person unless you absolutely have to. Most credit card companies will charge you if a live person takes the payment since this is something that can generally be done without talking to someone. These fees can be hefty, and will add up if you do this often.

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