How to activate autopay for your credit cards

We've all been there at least once: you log into your bank account to make a payment only to discover you've just missed the deadline. Whether you're late by a day or a week, the outcome is the same — late fees and penalties await those who don’t pay on time.

You can eliminate worries about late payments by enrolling in automatic payments. This convenient service, available at nearly every bank, enables you to set up a recurring monthly payment for your credit cards, ensuring you never miss a due date again.

Setting up autopay is a straightforward process. Here's how you can do it.

Access your bank account by logging in.

To begin, you'll need to access your bank account online. I'll demonstrate using my Chase Sapphire Preferred® Card as an example.

If you prefer, you can also call customer service to set this up if you don’t have an online account. However, having a username and password simplifies access to your information significantly.

Go to your account dashboard.

After logging in, you'll find yourself on your account dashboard. On Chase's website, you’ll see a list of your credit cards under the "Accounts" tab. Click on a specific card to open a pop-up with more details, including options for setting up automatic payments.

Most banks have a similar process. On your homepage, either go to a specific credit card or navigate to the payments section to locate the autopay option.

Initiate your payment setup.

At this point, you can start arranging your payments. If you haven't linked a bank account yet, you'll need to do that now, providing your bank account and routing numbers.

After linking your accounts, you can configure automatic payments. You will have multiple options regarding the payment amount you wish to set:

While we always recommend paying your balance in full, there may be times when that’s not possible. If you find yourself in that situation, you can opt to pay less than your total balance. The bank calculates your minimum payment each month, which depends on your outstanding amount, while a fixed payment is a specific dollar amount you choose. Keep in mind that if your fixed amount is below the minimum payment, penalties will still apply.

Though these options aren't as beneficial as paying in full, making at least the minimum payment will help you avoid late fees and losing reward points. Since many banks charge over $30 for each late payment, these fees can accumulate quickly.

Check and confirm your settings.

After setting up your automatic payments, you should be all set. Most banks require at least one billing cycle to process your choices, so if a payment is already due, you may need to make one additional manual payment. It's best to verify with your bank for accuracy.

It's important to keep in mind that these payments will continue indefinitely; as long as you're using your card and have autopay enabled, your bank account will be charged automatically each month. If the amount billed exceeds your available balance, you might incur overdraft fees, particularly during tough times, like an unexpected job loss.

Key takeaway

Autopay is an excellent feature provided by banks to help you stay on top of your payments. Missing payments not only leads to late fees but can also harm your credit score and raise your APR. Prevent these problems by setting up automatic payments—just remember that it's activated!

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