How to Track Autopay Subscriptions on Your Credit Card

Many subscription services offer trial or referral periods to entice new customers to try a product, often at a deep discount and sometimes for free. This could end up working well for the service, as it relies on you signing up with a credit card, setting your account to autopay, and then forgetting to cancel.

Many of us have multiple streaming services linked to your credit card, as well as monthly subscription services that deliver all kinds of products to our doorstep, from coffee to alcohol, cosmetics to pet supplies and just about any other consumer product imaginable.

But all these subscriptions can be very expensive, very fast. How can you prioritize and decide if you can afford all these expenses within your monthly budget? We spoke to several experts to explain how signing up for autopay can affect not only your cash flow but also your credit score, and how best to manage them.

Many streaming services and monthly subscription boxes require a credit card to set up your account. For goods or services that you use and enjoy, this payment agreement keeps your account active and in good standing.

“Setting up automatic bill payments for subscription services is one way to ensure that you never miss a payment deadline,” said Rod Griffin, senior director of consumer education at Experian. for those services. “As long as you manage your debt responsibly and don’t charge more than you can afford to repay each month, using a credit card to pay your monthly subscription fee can have some benefits.”

Here are some benefits of setting up automatic payments for your credit card

1. You can earn rewards. Many credit cards offer a rewards structure, which can yield 1X points for every $1 spent. These points can be redeemed for miles, merchandise or gift cards, or cash back. The Wells Fargo Active Cash® card, with no annual fee, offers cardholders the opportunity to receive a 2% cash bonus on all eligible purchases (see rates and fees). And, select credit cards like the Blue Cash Preferred® Card from American Express offer 6% cashback for every $1 spent on select US streaming services associated with your card. friend.

2. You are protected against fraud. If you feel like you’ve been overcharged, credit card companies offer protections for purchases made with your account.

3. Your credit card account is still active. Griffin points out that linking your credit card to an autopay subscription can be a useful way to let issuers know you’re using your credit card. It’s important to charge something from time to time, so the card issuer doesn’t close your account for inactivity. Just make sure you’ve also set up autopay on your credit card bill so you don’t miss a payment.

What are the risks of setting up automatic payments?

The golden rule for using a credit card is to pay off your balance in full each month. “Doing so will help you avoid paying interest on these fees and unnecessarily mounting debt,” says Griffin.

Unfortunately, it’s easy to get into the habit of mindlessly swiping your credit card, and it’s even worse when you’ve set up a bunch of autopay subscriptions and you don’t use the service very often. .

If you’re using a credit card to pay for an autopay subscription that you really can’t afford, or if you find that you’re having trouble paying your balance in full each month , Griffin advises you may need to take a closer look at your budget and consider cutting unnecessary expenses.

“While credit can be used as a financial instrument, debt can be a financial problem,” he said. “Using your credit card to sign up for services that you can’t afford to pay on a monthly basis can lead to missed payments and high balances, which can damage your credit score. your.”

If you link your credit card to an automatic payment subscription, pay close attention to your credit card statement each month to make sure all charges listed are correct.

You should also consider the provider you are using before signing up for automatic payments. While automatic payments can help you keep track of your bills and other regular payments, be mindful when you allow the company to charge your credit card each month.

“Before you allow a company to make automatic withdrawals, make sure the company is legit and trustworthy,” said Amy Zirkle, director of deposit and payment programs for the Consumer Financial Protection Bureau. trust. “You should never give your bank account, debit or credit card information to a company that you are absolutely not sure about.”

Before signing up for any new service, Griffin advises that it’s best to review your overall budget to make sure you can afford the new cost without putting a strain on your finances.

For example, if making a new purchase or signing up for a new subscription would make it difficult to contribute to your savings or make it difficult for you to meet any of your other financial obligations. yourself, you might want to reconsider,” he said.

Also, if you have a lot of the same subscription types, you should take the time to prioritize. For example, do you need five streaming services or three meal subscriptions per month? Take an inventory of which subscriptions give you the most value for money, and decide that way. Cancel the rest.

According to Griffin, a good rule to follow is to ask yourself whether the purchase is a want or a need, and if it’s something you can comfortably afford. Even if cash is tight, you can still use a few little things – a workout app you love or subscribe to a streaming service to help you wind down at the end of the day. But you don’t need all of them.

Also, it is important to note that the prices of subscription services are not fixed. “Prices change all the time. And in general, when they do, they don’t usually get cheaper,” said Monica Eaton-Cardone, COO of Chargebacks911. “You need to keep an eye on this, because if the price goes up, you might not automatically pay the right amount anymore.”

There are several subscription tracking services out there if you don’t have time to keep track of all the different services you have on autopay. Choose Truebill ranks as the top subscription tracker thanks to its easy-to-use interface that lets you see all your subscriptions in one place. You can link your credit card and bank account to the app and it will scan your bill for any recurring charges.

Seeing all your subscriptions in one place can help you decide what matters most, and for an extra fee, Truebill will take steps to cancel subscriptions you don’t want.

Even if you don’t want to pay for a subscription tracking service, you should take the time every few months to review what you’ve signed up for and take the time to cancel any services you don’t use often. often. Some credit card issuers will let you see all the autopay subscriptions you’ve set up on your card. Chase Cardholders can use the Chase Saved Account Manager and Capital One Cardholders can use Eno® — Capital One® Assistant.

And the best way is to set up a calendar reminder any time you sign up for a new subscription so you can cancel before the free trial ends and keep track of the date the calendar will show on your bill. your month if you want to cancel it in the future.

While it can be a bit overwhelming to keep track of auto-paying subscriptions, taking the time to cancel anything you don’t need can save you a lot in the long run.