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How to Pay Bills in 6 Steps

Next, determine how you want to pay your bills. There are various ways to do so, and it all comes down to finding the best method for you. 

Here are some of the most common methods for paying bills

Automatic (direct) debit

Automatic or direct debit is a bill payment method in which you authorize a company to automatically bill your credit or debit card on a recurring basis. Paying bills with automatic debit is a helpful way to stay organized since you don’t have to remember to pay them yourself each month. 

Say you join a new gym and enroll in a membership that automatically bills you twice a month. That recurring payment is an example of an automatic debit payment since it’s set up directly between you and the company you’re paying.

Online bill payments

Online bill payments work differently than automatic debit. Unlike automatic debit payments, online bill payments involve manually initiating a single payment through your bank. In short, you’re authorizing your bank to pay the company you owe. 

To make an online bill payment, you can go to your bank’s website or call the customer service number on the back of your card. These are one-time payments, so set a reminder for future payments, so you don’t forget.

Chime tip: Automatic payments are more convenient than manual online bill payments, but they can get you into trouble if you don’t have enough money to cover those automatic bills. Online bill payments can be a smart option if you’re still figuring out how to stay on top of your monthly bills.

Credit card

You can use your credit card to pay bills just like you would with a debit card, except the charge will appear on your credit card balance. 

Generally speaking, you should only pay your bills with a credit card if the following are true: 

  • You always pay your credit card balance on time and in full each month. 
  • You never put a bill on a credit card because you can’t afford to pay it. 

Using your credit card responsibly over time is a great way to build your credit history and boost your credit score. If you’re confident that you can pay your credit card balance in full and on time each month, using your credit card to pay your bills could be a good move. 



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