How to never miss a payment on your credit card again

The scariest thing about a credit card is overdrawing or forgetting to clear your debt – here's one simple trick to never miss a payment again.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

For a lot of Australians, one of the scariest things about getting a credit card is the fear of accidentally missing a payment that is due.

It doesn't take much to forget to check that card balance and wind up with a 20% charge on the outstanding amount and a hit to your credit score.

If you've been in this position, or you're considering a credit card but want to minimise this risk, here's a simple solution that could just do the trick.

Introducing the auto-sweep

For those that haven't had a credit card before, many credit card providers (i.e. banks) will offer an option to sweep your account at the end of each payment period such as at the end of each month.

By setting up what's known as "AutoPay", you can take back control of your personal finances and ensure that you never miss a credit card payment again.

The best bit is, the process is very simple.

All you need to do is fill in a Card AutoPay Request with your bank (preferably with an account that has sufficient funds and a nice little buffer to prevent overdrawing) and submit this to the bank in-store or online.

Once the bank confirms the AutoPay setup is complete (usually ~6 weeks) you are good to go and don't have to worry about missing those payments.

The key advantages here are peace of mind, less time spent trying to organise payments and the chance to improve your credit history all by submitting just one form. Be careful though – your account that has the funds to be withdrawn each month must have sufficient cash to cover your spending on a regular basis, so make sure you've got plenty of wriggle room with those funds.

Once you've done this simple process you can start reaping the benefits of credit cards without worrying about missed payments or additional fees!

Motley Fool contributor Lachlan Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Credit Cards

Credit Cards

Is 2020 a good time to get a credit card?

With so much uncertainty in the economy right now, could 2020 be the year to start using a credit card…

Read more »

Personal Finance

Here's why using a credit card is dangerous in 2020

High interest rates, low benefits and psychological tricks... Here's why I think most people should avoid a credit card in…

Read more »

a woman
Credit Cards

How to eliminate credit card debt today

If you're trying to get your credit card debt under control right now, here are a few tips to help…

Read more »

a woman
Credit Cards

What to do about your credit card debt right now

If you have a credit card debt, you might be nervous right now. Here are a few quick things to…

Read more »

a woman
Credit Cards

Should you get a credit card in 2020?

With services like Afterpay Ltd (ASX: APT) available, should you even get a credit card? Here's some pros and cons.

Read more »

a woman
Credit Cards

How to use your credit card wisely this December

A quick guide on how to use your credit card wisely this December and maximise your Christmas and New Year's…

Read more »

a woman
Credit Cards

3 ways to quickly pay down credit card debt

Here are 3 ways that you can quickly pay down your credit card debt if you're struggling to pay it…

Read more »

a woman
Credit Cards

How you can make the most of your credit card this Christmas

As we enter the Christmas spending period, find out how to get the most value out of your credit card…

Read more »