We get it - nobody likes paying bills! Seeing the money leave your account isn’t fun, and feeling like you can’t save isn’t great, and on top of all of that you are supposed to be able to keep everything organized. But smart bill management is crucial to building and maintaining good credit.
Managing bills, staying organized, and actively monitoring your accounts requires time and attention to detail. To keep your finances in check and ensure you are on top of your financial game, it’s important to create a clear bill payment process that works for you.
Here are some of our best tips and tricks to keep your credit score in the green and get your bills paid with ease.
Create a bill payment list.
Writing down all your monthly payments in a list will help you gain a clear picture of which bills require your attention and when they are due. This method ensures that no bills are overlooked and enables you to make timely manual payments.
Creating this list doesn’t have to be complicated. It can be as easy as writing it in the Notes app on your phone.
Prioritize your payments.
Having a consolidated bill payment list also allows you to prioritize your payments tackling the most important ones first and effectively managing your financial responsibilities.
Add your monthly savings goal to your bill payment list.
To get into the habit of saving include your savings account on your bill payment list. Treating your savings account like a bill that needs to be paid will help you cover the cost of unexpected monthly expenses, or help you to invest in big purchases like a home, car, or vacation.
Set up automatic bill payments.
True or false? Not paying your phone bill can affect your credit score. True!
Not paying your phone bill on time is a thing of the past. With automatic bill payments, bills are scheduled to be paid automatically from your bank account so that you never miss a payment. You can easily set this up in your online banking.
Start budgeting.
Budgeting doesn’t have to be a time-consuming or complex task. It’s all about understanding your financial situation, which can help reduce stress. By budgeting, you gain valuable insights into your income and expenses, allowing you to effectively allocate your funds.
Track your spending patterns.
Quickly checking your monthly statement will remind you where your money is going and if you need to reevaluate your spending habits. Maintaining a positive financial track record will help you stay on top of your bills, avoid late payments and keep your credit score in check.
Effectively managing your bills and accounts is important for maintaining good credit. A strong credit score can be important when you are looking to achieve big financial milestones such as buying your first home. Building a positive credit score requires motivation and grind, but the payoff is rewarding.
Remember you don’t have to face the challenge of managing your accounts and bills alone – credit unions are excellent resources that offer guidance, support and tailored financial solutions to help you navigate your way to financial success.