Have you recently graduated from college and you’re learning how to take on your own finances responsibly? Are you a small business owner who is managing several different accounts to keep your enterprise going strong? Do you work for the accounting department of a large corporation with global clients? If you answered “yes” to any of these questions, then you may be looking for ways to keep your accounts current. Being able to keep your account current over time is one of the very best things you can do for your credit. Follow our guide of four simple tips you can deploy for a current account in the New Year.
Tip #1: Prepare Ahead
Keeping an account current is all about knowing when to pay. Set your pay date a few days ahead of your due date, if you’re able. Also, remember that sometimes you’re not actually late if you pay past the due date. This depends on different companies. But in the case of mortgage and rent payments, for example, you usually have a grace period.
Tip #2: Know the Details of the “Minimum Payment”
Some companies require you to pay a minimum payment each month. If you pay over that amount, you are not credited for the next month. You still have to pay the minimum payment the next month to avoid a late fee. Don’t make this mistake. Know the fine print and what a minimum payment really means.
Tip #3: Budget, Budget, Budget
At the end of the day, you need a really great budget and you need to stick to it in order to keep your accounts current. Try to pay a little over each month on the accounts carrying the highest interest rates. This saves you money in paid interest over time rather than trying to pay down your debts equally. Try to put your credit card up until you are debt-free. Nothing says budget like learning to use the cash you have.
Tip #4: Account for Delays
When you are transferring money to keep an account current, you need to account for delays. This can happen as you transfer money from one bank to another. There also can be delays in maintaining a foreign current account, as the money may not be reflected on your account for several days. Know these delays ahead of time so you can prepare accordingly and get your payment in on time.
All it takes is a little management and attention to detail, you’ll be on your way to paying your bills on time and keeping all of your accounts current. It takes some practice — especially if you’re just starting out or if you are managing hundreds of accounts at one time — but with practice and organization, you’ll be able to stay on top of it. Keep our four top tips in mind as you move forward!