Yes, it is a good idea to set up autopay on a credit card, as this is the best way to make sure that you never miss a payment due date. Credit card autopay allows you to set up recurring, automatic payments for your credit card accounts. You’ll typically be able to set up autopay on your credit card either through your online account or the issuer's mobile app.
It’s worth noting that you can also pick the amount you’d like to autopay. Most card issuers give options to automatically pay the minimum amount due, the full statement balance, or a custom amount.
Why it’s a Good Idea to Set Up Autopay on a Credit Card
- You can avoid costly late fees.
- If you choose to pay your full statement balance automatically, you’ll avoid interest charges on purchases.
- Your credit card payments will always be made on time.
- Using this feature constantly will lead to positive information being added to your credit report.
When setting up autopay on a credit card, it is always important to make sure that you have enough money in your payment account to fund your payment every month. If your account doesn’t have enough funds for the automatic payment, you will either overdraft your bank account or miss a credit card payment. Missing a payment due to insufficient funds could result in high penalty fees and interest rates.
This answer was first published on 10/06/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
