Why You Should Be Wary of Using Automatic Credit Card Payments

PennyGem’s Elizabeth Keatinge tells us what the experts say about setting up automatic credit card payments.

Transcript

00:00Setting up automatic credit card payments helps keep everything simple and make sure

00:08you don't miss a payment, right? Probably a good idea for many Americans. According

00:12to a WalletHub survey, 18% of adults expect to miss at least one credit card due date

00:17in 2020. Well, one expert tells CreditCards.com that there can be a downside. Setting up your

00:23credit cards on autopay cedes some control to the credit card companies, says former

00:27banker Nick Clements. You also may be inclined to not go over your statements if you set

00:32it and forget it. Clements says, be sure you still take responsibility for your account

00:37and scour your statements every month. Even if you have alerts set up, don't be one of

00:41the victims of credit card fraud just because you aren't paying attention. According to

00:44ShiftProcessing.com, credit card fraud is ranked the number one type of identity theft

00:49fraud. In 2018, $24.26 billion was lost due to payment card fraud worldwide.

00:57CreditCards.com