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.
Some lender’s rates are quoted with AutoPay discount included. If the rate being quoted includes auto-pay then this is detailed in the “partner details” section. While finalizing the loan application with the lender, the customer can choose to include auto-pay or not. The AutoPay discount is only available prior to loan funding. Rates without AutoPay can be 0.50% points higher.
Here are a few reasons automatic payments can help you.
Enjoy peace of mind
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.
AutoPay allows you to not only feel that peace of mind, but it also ensures that your payments will be made on time.
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
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.
Minimizes risk
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.
Avoid paying extra interest or late fee’s
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.
Improve credit score
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.
Save trees, go paperless
When you opt into 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 the potential for someone to intercept your mail.