Direct Deposit + Automatic Payments = Good Credit (2 min read)

There are several key tools that can be used to achieving good credit, but the combination of direct deposit & automatic payments are at the top of the list.  Below explains why.

Automatic Payments

Setting up automatic payments from your checking account for your routine bills: auto loan, utilities, and insurance bills offers two key benefits:

• You should rarely miss a payment or be delinquent.  By setting all your bills to be paid automatically, you’re not as pressured to keep track of what needs to be paid when or paying them on time.

• Bill Payment is easy and Convenient .  Once an automatic payment plan is established, your bank will handle the rest.
• Saves you times and money.  You will no longer have to pay for checks, stamps, envelopes, or gas for trips to the post office

 Set your automatic bill payments to process within a few days after you receive your direct deposit.

Direct Deposit

Payroll Direct Deposit is a process where employee earnings are automatically deposited into bank accounts.  Most medium and large companies offer this service to employees for free.

• Your money is available sooner compared to paper check.  Your paycheck clears immediately and goes straight into your bank account.  You might even have your money payday morning, regardless of the time your employer normally hands out paychecks.
• You should have lower or no maintenance fees.  Your bank might waive its monthly maintenance and minimum balance fee for you.
• Easy to deposit money into savings or emergency fund account. You can setup direct deposit to put money into different accounts, like your savings and an emergency fund, without giving it a thought.

Work with your creditors to set the due date for your bills to be after your direct deposit.

Direct deposit and automatic payments combined, will result in you never paying bills late, (along with other benefits mentioned).  When credit scoring agencies see that your bills are always paid on time, your credit score will continue to move up and stay up in the higher brackets.