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 Be careful though – your account that has the funds to be withdrawn each month must have sufficient cash to cover your spending on a regular basis, so make sure you've got plenty of wriggle room with those funds.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!
