It seems like every financial transaction has some affect on your credit history. Forgetting to drop a check in the mail one morning because you were running late for work could literally mean that you have to pay a higher interest rate when you go to buy a new car next month. That’s crazy! It’s also why automatic renewals make so much sense for consumers who want to keep their credit scores in top condition.
What Automatic Renewal Does
Automatic renewal basically means that you never have to worry about paying a bill. Instead of writing a check or sending a payment electronically, the company charges your account. The money comes right out of your checking account (or goes on your credit card if that’s how you set it up).
This makes it much easier for people to pay recurring expenses on time. You already know that you’re going to pay your MyLife subscription every month, so why not let it happen automatically? If you decide that you want to cancel your subscription, you just have to contact them.
So, you can either contact a company once when you want to cancel a charge, or you can contact them once a month for as long as you use their services. The choice seems pretty clear.
How Automatic Renewal Benefits Your Credit Score
Having companies automatically deduct money from your checking account also means that you never pay your bill late, which means your credit score doesn’t get dinged when you forget to put a check in the mail.
Today’s consumers have to pay close attention to their credit scores. They affect everything from car insurance rates to whether you have to pay a huge deposit on your utilities.
Who wouldn’t want the advantages of auto renewal when it comes to recurring costs from MyLife and other companies that charge the same amount every month?