Paying your bills on time is something we all should do. It's the polite thing to do when someone is providing a service to you or loaning you the money you need to do what you want. While you may know it’s the right thing to do, you may not realize or even think about the other important and valuable reasons behind paying your bills on time. It’s not just a polite thing to do, but when you think about the reasons below, you’ll see the much bigger picture when it comes to why you should pay your bills on time.
1. Late Fees One of the most important reasons why you should pay your bills on time is to avoid late fees. Every place that lends money or provides a service to others has the ability to charge a late if the agreed amount isn't paid on time. These fees can be a percentage or dollar amount and can range from 1% to 2.5% or $10 or more each time you're late. Oftentimes a loan, like the loans provided by LoanMart, are in order, however. So, don't be put off by these fees. Simply be aware of them and set your budgeting goals so that you'll never have occasion to pay them. Some companies give you a grace period before the late fee is accessed while others will apply late fees to your account the day after they’re due.
2. Cancellation Depending on the type of bill you’re paying on each month, paying late may result in cancellation of your service. This can happen with your cable bill, your electric bill, or your phone service. If you’re cancelled you’ll have to pay a reconnect fee to get your service started again. It’s possible you’ll also have to pay the bill in full so it’s current before they get it started again.
3. Credit Report An advantage to paying your bills on time is the ranking you’ll have on your credit report. Credit card companies, some utility companies, vehicle loans, and title loan companies such as LoanMart, all report to the credit report and can greatly improve your credit rating when paid on time. Your credit report helps you when getting loans or credit cards, so it’s important to make sure you do what you can get to the best credit rating you can. A lot of times the interest you’re charged for loans is best on your ranking; the better your rank, the lower your interest rate. This will help you save hundreds, maybe thousands of dollars over the life of your loan.
4. Payment Arrangements If a bill comes in higher than you originally expected or you’re short on cash, making payment arrangements may be the only way you can get the bill paid. You'll find that LoanMart and many other companies that receive payments will work with your payment schedule, provided you communicate with them before the bill is actually due. If you don’t pay your bills on time payment arrangements may be out of the question. Paying late may scare the person wanting money from you so they may not feel comfortable allowing you to do this.
When you pay your bills on time, your trust will go a lot further with those you’re borrowing money from. You’ll have the ability to make bigger and more expensive purchases and your credit rating will be better. All of these add up over time, but it’s important to remember when you pay your bills on time, you’ll have much more than a person that doesn’t pay on time each month.