Reasons to use Online Bill Pay to Pay your Credit Card Bill

The rising cost of postage, the convenience and the time savings one can anticipate are a few of the reasons to use online bill pay to pay your credit card bill. This is however only the tip of the iceberg when it comes to deciding whether or not to pay your credit card bills online.  Here are some other reasons why it is a good idea:

Late fees

When reviewing the late fees that credit card companies charge on delinquent payments, many cardholders are shocked.  Using online bill pay to pay credit card bills may help alleviate these late charges. It is important to understand that late fees are added to balances due and could mean that it takes longer to pay off credit card balances, and that interest is added to late fees when they remain unpaid.

Interest rate changes

Generally speaking, credit card companies are notorious for burying interest rate changes due to late payments in their user agreements. Those who pay their credit card bills using online bill payment may find that because they are paying their bills regularly, before the grace period for late payments expire, they will not be faced with an ever increasing interest rate charge. Higher interest rates mean that it can take longer to pay off credit card balances.

Credit rating benefits

Those who have set up online bill payments generally are able to pay their credit card balances off without problems. This can only have a positive effect on credit ratings. The more consistent a person is with paying bills on time, the more likely they are to reap the benefits with a stronger credit rating.

Cost saving benefits

There is little doubt that postage costs have been on the increase. Online bill payment allows a credit card holder to pay bills without the added expense of postage (and envelopes).  Certainly the cost of mailing a bill payment is less than one dollar, but even this small amount of savings adds up over a year.  In addition to the cost of mailing, printed checks also cost money, using online bill payments can also reduce (or nearly eliminate) this cost as well.

Time saving

While most people have envelopes and stamps on hand, they do run out from time to time. This means a trip to the post office or stationary store to replenish these materials.  In our busy society, nearly anything that allows a consumer to save time is very beneficial, even if it is less than one hour.


These are a few of the reasons to use online bill pay to pay your credit card bill.  Another benefit is that most people who use online bill payments are aware that they must keep sufficient funds in their bank account to cover these automated payments. This can result in a heightened awareness of their balances and help them avoid unneeded spending.