The number one part of your credit score is your payment history, which accounts for 35% of the score.  So paying your bills on time, every time, is a smart way to grow your credit rating.  And, as you know, a higher credit score usually means lower interest rates, better insurance rates and more financial options. And paying your bills in a timely manner may save you money right now.  With so many companies looking for ways to cut costs, new fees are popping up and hitting consumers right in the wallet.

If you pay your bill in person or over the phone, beware.  Many utility, cable, phone and cell phone companies are charging anywhere from $2 to $12 for this “service”.  If you realize you misplaced the electric bill and want to be sure your service isn’t cut off, it might cost you a few extra bucks to run it down to the electric company or one of their third party processing centers.

1) Set up a system to organize your bills.  As they arrive, you can pay them right then and there to avoid misplacing them.  If you need to wait until payday to pay the bills, organize them in a weekly folder or binder and mark your calendar to sit down and pay them every week at the same time.  You can also put their due dates in your planner or on your calendar.

2) Consider automatic bill pay for recurring payments such as auto loans, mortgage or utility bills.  BE SURE that you confirm with the company that the automatic payments are set up for the amount you want and the date you want.  Many late payments occur because people assume everything is okay after initial set up when there may have been a confirmation step needed to begin.

3) Read your statements.  Whether you pay in person, by check on automatic deduction, you should check to be sure the payment actually got posted to your account.  This is also a good time to check credit card and retail account statements to be sure there are no additional or incorrect charges on your account.

4) If you are charged an extra fee for paying in person, contact the utility company to request a waiver or credit on your account.  Tell them you don’t think it is fair to penalize customers for paying their bill.

Remember, your payment history is the number one factor in your credit score.  No late payments on anything, every single time, is the best way to grow your credit rating over time. 

Contact us for your Complete Credit Analysis to learn how to positively impact ALL parts of your credit score.