Choosing How to Pay Bills
In general, you can pay your bills using:
- Cash
- Checks
- Credit or debit cards
- Money orders
- Online or mobile bill payments
- Prepaid cards
Picking a method that helps you consistently pay your bills on time can help you build a payment record that may improve your ability to access credit.
There are benefits and drawbacks to each method. For example, if you prefer to pay bills in-person using cash, you have to get to a payment location, which costs you time and gas money or transit fare. If you use automatic bill payment from a checking account, you’ll save time, but you'll need to make sure you have enough money in the account to cover the payment. Otherwise, you may risk a rejected payment or an overdraft fee. If you pay by credit card and can’t pay off the balance in full each month, you’ll have to pay interest, which will add to what you owe.
What to do
- Read through the bill payment methods below
- Some features can be either advantages or disadvantages, depending on what's important to you
- Remember you don't have to pick just one payment method for all your bills. For example, you might put your rent or mortgage on automatic payment, but pay your other bills one by one with cash
- Write down questions you have about options you think could be right for you
Benefits | Risks | ||
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Cash |
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Check |
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Credit card |
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Money order |
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Online or mobile bill payment |
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Prepaid card |
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Basic Elements - Legal Text
Source: consumerfinance.gov
This material is provided for educational and information purposes only. It is not a replacement for the guidance or advice of an accountant, certified advisor or otherwise qualified professional.