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Traveling and then queuing up to pay bills is not exactly a fun way to spend your time. Perhaps that is one of the reasons why it is so easy to forget to pay a bill on time. In fact, around 22% of people don’t pay their bills on time*. This may impact on a customer’s credit rating, leading to difficulty in getting credit in the future, or higher rates of interest to pay.
The solution for many is to set up standing orders. These can automatically pay a bill on the same date for the same amount. And customers don’t need a bank account to get this feature working for them, as some prepaid cards now offer them.
For example, the prepaid Gold MasterCard® enables cardholders to set up as many as 20 payments a month for free, via standing orders or one-off transfers. As well as making paying bills quick and easy, standing orders can save money – in a couple of ways.
Firstly, they can help avoid late payment fees, and having to pay the price if the customer’s credit rating becomes damaged. Secondly, paying by standing order can deliver all sorts of discounts, from money off subscriptions with book clubs to 4% off the unit rates for energy with Southern Electric.
When you think about how many bills there are to regularly pay, it soon becomes easy to realise that the standing order discounts could add up to a pretty useful amount. Then add on top the Cashback Rewards available with the prepaid card for everything from BT and Vodaphone to British Gas and it becomes clear that all in all the card could help save a lot of money.
The prepaid card also offers other handy features, such as one called CreditbuilderTM, which is designed to do what it says – build your credit rating. So if a customer has already damaged their credit rating, adding Creditbuilder at no extra cost could help repair the negative impact that past late payments may have caused to their credit rating.
So, anyone that is concerned about the amount of time that they spend on paying their bills and is worried about paying them on time, should take a look at what prepaid cards have to offer. After all, as long as there’s enough money in the card’s account to pay the bill, the cardholder never need miss a bill payment again.