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4 Reasons You Need to Pay Your Bills on Time

Paying your bills on time is one of the key aspects of taking charge of your financial life. Not only does paying bills on time help you avoid a number of nasty repercussions, but it can also have lots of short- and long-term positive side effects.


Avoid late fees

Arguably the most immediate reason to pay bills on time is to avoid late fees. Some companies and services will charge late fees just minutes after a payment is due. It’s especially important to avoid late fees because those extra charges can make an already tight budget even more difficult to manage. If paying for late fees causes you to be unable to afford paying the next bill on time, it can snowball into a vicious cycle of late fees that can be tough to break.

Improve credit score

Paying bills on time is the best thing you can do to improve your credit score. According to FICO, payment history is responsible for approximately 35 percent of your credit score. Paying bills late can greatly hurt your credit score, and the later you pay, the greater the damage.

Your credit score benefits the most from you making your payments, credit card and otherwise, consistently on time for long periods of time.

Enjoy lower interest rates and more access

Paying bills on time leads to an improved credit score, and an improved credit score leads to lower monthly payments when it’s time to take out a loan. Whether you’re buying a car or getting a mortgage for a house, you can get better interest rates with a higher credit score.

If your credit score is high enough, you could improve your chances of qualifying for a mortgage for the home of your dreams.

Reduce stress

By paying your bills on time and raising your credit score, you are effectively improving your quality of life. Thanks to reduced interest rates, monthly payments become more affordable, giving you more room in your budget or simply making it easier to continue paying bills on time. When you’re not worrying about late fees or deadlines, it’s easier to have a clear, stress-free view of your finances.


Paying bills on time can be difficult for reasons other than coming up with the money. Between all the various utility bills, monthly car payments, mortgage payments and various insurance bills, staying on top of it all can be a headache that you might be tempted to ignore. Fortunately, there are many ways to make that headache go away. If you need help using Kleberg Bank’s Bill Pay services, call 361-850-6800 or visit