Paying Your Bills on Time
Why You Should Pay Your Bills on Time! If you are a type of person who waits until the last minute (“the deadline”) paying your bills, I would bet that you believe that you think you are making a “profit” by having the money in your bank account for a short period of time until the bill is due to be paid. Reality check! Interest rates are so low that anything you think you are earning is offset by missing a deadline, misplacing a bill, whatever. When you miss a payment deadline, there can be a late payment charge and/or interest charge on the amount due. Do it more that once and the credit card company may increase the interest rate on the card or reduce the allowable credit limit on the card. Miss the deadline often and this information will be reported to the credit bureau which will lower your credit score. Then when you apply for a car loan, new credit card or just renew your mortgage on your house, watch the interest rate – it will be higher than you expected due to the “higher risk factor” of a bad credit history.