Protect Your Credit Rating

• Paying your bills on time is directly linked to having a good credit rating. It is imperative to have a good credit score, as this rating can help you obtain credit such as mortgages, car loans and credit cards. Credit scores are reported by three main credit reporting agencies: Equifax, Experian and Transunion. Creditors can report to these three agencies that a bill has been paid late, which will appear on a credit report when viewed by a potential lender.
  
  

Receive Discounts

• One of the advantages for paying a bill before its due date is the possibility of receiving an early pay discount. This discount is extended by some creditors as an incentive for consumers to pay early and increases the chances that they can receive compensation for their services on time. Some discounts can be negotiated. Some creditors, such as heath care providers, are often willing to negotiate a discount for paying early, although it is not necessarily stated on the bill.
  
  

Avoid Late Fees

• Late fees are often assessed upon bills that are not paid on time. Some of these late fees can be quite punitive. While the Credit Card Act of 2009 bans the excessive fees that some credit card companies charged, the late fee limit of $25 for the first offense and $35 for another offense within six months can still be an effective tool to influence early or on-time payments.
  
  

Achieve Peace of Mind

• Peace of mind is a nonmonetary advantage of paying a bill before its due date. Technology such as online bill pay can help consumers remember when it is time to pay a bill. The peace of mind received from knowing a bill is paid is priceless.