Steps 2 and 3: Payment Options

Step 2 — Get Set up for Paying Your Credit Cards Online

Paying by snail mail is a time-consuming task involving multiple steps. Paying online, in contrast, is a one-click process that you can do in a matter of minutes. It does take some time to get set up for online payments, but it is well worth it. Once you’re up and running, you simply have to sit down once a month, and in one 10-15 minute session, pay all your credit card bills for the month.

Quick Tip: While you’re at it, consider setting your other monthly bills up for online payment as well.

Step 3 — Choose Automatic Payments When It Makes Sense

Many credit card issuers give you the option to deduct the payment due on your credit cards automatically from your bank account each month. This is a great option for cards where your balance doesn’t fluctuate, and the payment due every month stays the same, such as on cards where you carry a balance from a 0% APR balance transfer.

It is not such a great option for cards where the balance—and therefore the payment due—fluctuates. If you are paying out of a bank account with a sufficiently large reserve and find it easy to stay on top of keeping your account balanced, this may not be an issue for you. However, generally speaking, the automatic payment option makes the most sense for cards where you pay a set monthly amount.

Quick Tip: The minimum payment can increase even when your balance stays fixed. For example, if your card reverts to a higher interest rate at the end of a promotional period or for some other reason, the minimum payment will go up. So even for cards on an automatic payment schedule, always read your credit card statements carefully each month, so you can be aware of any changes.

Read on for the last two steps

Published: May 22, 2009