“Maximize Savings: Bills That Offer Autopay Discounts”

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6 Bills That Offer Autopay Discounts

Just as certain as death and taxes, bills are a part of life. Some companies require automatic payments without offering any extra benefits, like gym memberships or streaming services. However, other companies make automatic payments optional and even offer discounts to incentivize customers. While you won’t find autopay discounts on your credit card bill, here are six common types of bills where you can often save money by switching to autopay.

1. Cellphone Service

Major mobile phone companies, such as Verizon, T-Mobile, and AT&T, offer autopay discounts for customers who opt in. Savings range from $5 to $10 per line, per month, depending on the payment method. Typically, you must also sign up for paperless billing to get the savings.

2. Internet/Cable TV

Internet and cable TV companies commonly offer autopay discounts. These service providers typically give customers $5 to $10 off their bill each month for being on autopay.

3. Insurance Premiums

Some car insurance companies offer reduced premiums if you pay them upfront annually. If you choose to pay quarterly or monthly, you can often get a discount for setting up autopay. For example, USAA offers up to 3% off auto insurance premiums for using autopay. You might also find autopay discounts for home insurance, renters insurance, and life insurance.

4. Student Loans

Both federal and private student loans typically offer autopay discounts. Instead of a flat amount off, automatic payments on student loans usually reduce your interest rate. Expect a discount of 0.25% for enrolling.

5. Car Loans

If you have an auto loan, switching from manual payments to autopay can help reduce your balance faster. Several banks offer 0.25% off auto loan interest rates for enrolling in automatic payments. Be sure to read the fine print; some banks require the autopay to come from a checking or savings account at that same bank.

6. Other Loans

While lenders usually offer an automatic payment option, not all provide a discount for it, particularly mortgages. However, you might find autopay discounts on other forms of borrowing, such as personal loans or home equity lines of credit.

Check for Other Opportunities

You may find other autopay discounts for products, services, and companies you pay for regularly. For example, if you use a daycare for your kids or doggie daycare for your pets, you might find an autopay discount available for regulars. Do a little research on your recurring bills to ensure you’re not missing out on any savings.

Benefits of Setting Up Autopay

Switching to autopay can benefit you in several ways, even if there’s no discount:

• Pay less: When incentivized, you get a discount on your bill amount or interest rate, which can add up.
• Avoid fees: Autopay ensures you’ll never pay a late fee since your bill will automatically be paid on time, every time.
• Help build credit: One of the most important factors in your credit score is your payment history. Autopay simplifies on-time payments every month, helping build or improve your credit.
• Save time: Autopay means less time spent checking due dates and making manual payments. It’s all conveniently taken care of for you.

How to Manage Bill Autopay

Autopay has its perks, but there can be downsides if you’re not strategic. Use these tactics to ensure automatic payments help you rather than hurt you.

1. Work It Into Your Budget

Automatic payments will likely draw at different times throughout the month, which can create a budgeting challenge. Keep track of what charges when, especially if it’s not timed well with your paycheck. For bills with significant fluctuations, consider keeping them as manual payments.

2. Keep Track of Balances

When companies bill you through autopay, they can’t see your balances, so the transaction initiates whether you have enough money in your bank account or not. If you don’t have enough money, you’ll overdraw your account and likely get hit with a fee. Consider creating recurring calendar reminders to double-check your balance before autopay runs.

3. Update New Card Info ASAP

If you receive a new credit or debit card, update your payment details immediately to avoid returned payment or late payment fees. Go through your latest statements to refresh your memory about which businesses charge you automatically.

4. Do It Yourself

Even if savings aren’t offered, consider switching to autopay for its money management benefits. If a company you pay regularly doesn’t offer automatic payments, many banks and credit unions have free bill pay services that let customers set up automatic payments.

The Bottom Line

Switching to autopay can be an easy way to save a few bucks on your bills each month. But don’t discount the benefits of using autopay even if no savings are offered. It helps keep you paying all of your bills on time every month, which can help strengthen your credit score. If you have a history of late or missed payments, it’s a great time to start monitoring your credit for free on Experian. As you switch your bills over to autopay and build a strong repayment history, you could see your credit score rise in return.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you with all your mortgage needs!

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