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When you lead a busy, full life, having one less thing to worry about or take up headspace can be a blessing.
Paying your bills on-time could be one of them. It’s why automatic payments (or autopay) exists. And we’re here to tell you about it.
Autopay (or automatic payment) is a feature that automatically withdraws a regularly scheduled - typically monthly - payment amount from your checking account and sends it to a vendor.
Autopay can have a number of benefits; it’s typically simple to set up and can ease your worry about missing payments.
Here are a few reasons automatic payments can help you.
Enrolling in autopay allows you to “set it and forget it”.
It can remove the worry of having to remember to make a one-time payment every month.
Automatic payments will align with your recurring bill cycle, which should eliminate the stress of potentially missing a bill payment due date, as it will occur automatically.
Convenience comes at both ends of the experience.
There’s the convenience of not having to wait for your bill to come in the mail. And there’s convenience related to the payment itself, as you don’t need to worry about writing a check, waiting for that paper statement to arrive in the mail or logging in to make a payment.
Additionally, you don’t need to set a monthly reminder, unless you want the reassurance that the payment was posted.
Autopay allows you to not only feel that peace of mind, but it also ensures that your payments will be made on time.
It’s common to be concerned about whether your payment is pending or posted, but automatic payments should alleviate this because payments will be made automatically – there’s no need to worry about its status.
While Marcus does not have fees, paying late could result in additional interest.
If your loan is with Marcus you could end up paying extra interest for missed or late payments. If your loan is with another lender, you risk late fees and/or additional interest.
Signing up for autopay means you should be able to avoid late payment fees.
If you’re looking for ways to improve your credit score, continuous on-time payments can help. Your payment history can account for as much as 35% of your credit score. Enabling autopay guarantees your payments will be on time, adding a positive note to your payment history.
When you opt in to automatic payments, you may also be able to enroll in paperless billing. You won’t need to rely on the bill arriving in order to make a payment. (Note: paperless billing isn’t unique to autopay, however we think it’s another benefit.)
Going paperless will help you reduce mail volume and overall waste. Going paperless can also help with cybersecurity. Using electronic statements with secure logins makes you less vulnerable to identity theft by reducing potential for someone to intercept your mail.
Marcus offers an on-time payment reward for customers who consistently pay on time. Enrolling in autopay can help get you there.
After making 12 or more consecutive monthly payments in full and on time for a Marcus personal loan, you can defer one payment without accruing additional interest or fees. With this perk, customers can plan ahead and manage their monthly finances. There will be no interest charged during the deferral; your loan will simply be extended by one month with the normal interest accrued.
This is not a one-time perk. As long as you keep your payments consecutive for 12 months in full and on time, you can defer after another consecutive 12 months. Find out more details on how Marcus loan customers can use an on-time payment reward.
If you are a Marcus customer, here’s how you can enroll in AutoPay.
This article is for informational purposes only and is not a substitute for individualized professional advice. Individuals should consult their own tax advisor for matters specific to their own taxes and nothing communicated to you herein should be considered tax advice. This article was prepared by and approved by Marcus by Goldman Sachs, but does not reflect the institutional opinions of Goldman Sachs Bank USA, Goldman Sachs Group, Inc. or any of their affiliates, subsidiaries or division. Goldman Sachs Bank USA does not provide any financial, economic, legal, accounting, tax or other recommendation in this article. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. Information contained in this article does not constitute the provision of investment advice by Goldman Sachs Bank USA or any its affiliates. Neither Goldman Sachs Bank USA nor any of its affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements or any information contained in this document and any liability therefore is expressly disclaimed.