Pay Bills Online

From LoveToKnow Creditcards

Most people who pay bills online do it because it is often easier and more convenient than traditional bill paying methods. Paying bills online allows consumers to save time from writing checks and save money on stamps.

How to Pay Bills Online

There are two basic types of online bill paying services. The first type of service allows you to pay bills online through a secure site regardless of whether the creditor accepts electronic payments. If the creditor does not accept electronic payments online, Paytrust.com will issue a paper check. Through Paytrust.com you can also see any bill online regardless of whether or not the creditor sends your bills electronically. Paytrust.com will scan your bills to allow you to see your bills online each month.

The second type of service allows you to pay bills online through an institution you are familiar with – your bank. Many banks now provide bill paying services. Some banks even offer other electronic services. For example, some traditional banks offer online balance checking and account transfers. Because you may already have an account with a traditional bank, these online services may even be provided to you free of charge, offering added convenience

Choosing a Service to Pay Bills Online

When choosing which online bill paying service is best for your financial needs, consider the features discussed in this section.

  • The service should guarantee accurate and on-time payments. If not, the late fee should be covered by the service.
  • Some online bill paying services will only work with creditors that allow electronic payments. If all your creditors do not allow electronic payments, then you are still going to have to pay some bills the old fashioned way.
  • Some online bill paying services require that you change your billing address to that of the online bill paying service provider. The bill paying service you choose will help you notify your creditors of the change of address.
  • The service should allow you to access past bills and payment information online. You should check to see how far back you can access information. You may want to view the last twelve months worth of transactions.
  • The service should allow you to create reports to help you track exactly where your money is going. If you want to view a year’s worth of expenses, you should be able to create and print a chart or table of this particular information.
  • Several services offer a free trial period -- after that, there's usually a monthly fee. Be sure to calculate if you can afford to pay bills online with a particular service. If your budget is very tight, use only free services or use the old fashioned way – write a check and stick it in the mail.
  • If you already use a financial software package, like Microsoft Money or Quicken, to keep track of your finances, those software packages may be compatible with the online bill paying service provider you choose. This will help you avoid extra bookkeeping chores.

Conclusion

It may make your life easier if you pay bills online. However, you should always be careful to monitor your bill paying service in order to catch any errors quickly. Paying bills online does not mean you can ignore your bills. Always be certain to maintain an adequate balance to cover your monthly expenses. If you keep your accounts error-free and use online bill paying services to keep your finances in order, you may avoid burdening yourself with excess paperwork and chores.


 


Comments

Linda,

Some lenders report every late pay as soon as it occurs. Each negative report has the potential to lower your credit score.

Some lenders will not extend a loan to anyone with a credit score below a certain point. Other lenders might be willing to make the loan but they will charge a higher interest rate.

If the company you want to refinance with is not willing to refinance your loan with your lower credit score you have the following options:

  • Ask the company what rate they would be willing to give you with your new credit score.
  • Investigate your refinancing options with other banks and mortgage companies.
  • Hold off refinancing for six months during which time you can concentrate on getting your credit score back up to where it was before the late payment.

Thank you for your question and for visiting LoveToKnow Credit Cards.

-- Contributed by: SusanWeber

was 3hr 25 minutes late prosessing a on line payment to mortage comp first time ever being late ,bank reported to credit company and my points dropped 50 points just at the time I'm looking to refinanceand they tell me there is no recorse

-- Contributed by: Linda

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