Pay on time, pay less. Period.

"How can you save money by paying your bills? That makes no sense."

If you're wondering how to save money on your bills, the title of this article may seem like a typo. But it's not… and you're likely already paying the price for not knowing that.

Free Candy?!? Sign Me Up!

Walking through campus, it seemed like people were just jumping at you offering free stuff--candy, t-shirts, key chains, a Slinky, you name it. All you had to do in order to get the stuff was fill out some piece of paper with your social security number, and basic info. A couple weeks later, things got even better when you got a shiny credit card in the mail with your name on it.

Charge It!

They sent you the card, of course you’re going to use it! Buy the expensive toy today and pay only 15 bucks a month for it. Talk about a sweet deal!

You've heard that the best way to start establishing credit is by starting young… so using your card and paying off the balance is actually in your best interest.

Thing is, finals rolled around and you went home for the break, and even though you had the 15 bucks, in the midst of all the test stress and post-exam party excitement you missed the bill and forgot to pay it.

No Big Deal Right? WRONG

First, you will be charged a late fee that might even be larger than your minimum payment. Even worse, your credit card company can apply other hidden "processing fees" or raise your interest rate. This is how they make their profits.

Paying your bills and paying them on time is how you establish a credit history. May sound boring, but only because you don't realize just WHAT A BIG DEAL it is to have good credit.

I've got a car and it'll be 10 years before I buy a house. Who cares about my credit?

Being a good boy or girl and forking over the cash on time each month doesn't just earn you a gold star with creditors and guarantee you entrance into the gates of low interest rate heaven. These days, keeping a good credit history will save you money on just about everything, and it paints a picture of you to the world.

Your Credit Score = Your Responsibility GPA

The quickest way for anyone to find out if you're a responsible person is by looking at your credit report.
Remember how important your grades and SAT scores were when it came to getting into college? Well, your credit score is even more critical when it comes to dealing out in the "real world." It is sort of your life SAT.

When it comes to buying, borrowing or applying for just about anything in your adult life, you can bet your credit history will come into play.

A glowing resume may not save you from having a potential employer do a double take on a shoddy credit report. For example, you may not be buying a house any time soon, but you probably are going to rent a place. Landlords like to see clean credit ratings because it demonstrates you're a responsible person. If your credit report shows you haven't paid your student loans, you've had utilities turned off, your car repossessed, etc., why would a landlord want to rent to you?

The same thing is true with getting a job. Do you think a bank would hire someone who is financially irresponsible? No. Would a state government hire someone who owes state taxes? No. Think about what your credit looks like from the other person's point of view.

Dodging Deposits

On the other side of the coin, having a solid credit score will undoubtedly save you hundreds of dollars. Good credit tells companies they can trust you to pay on time, saving you hefty deposits.

Turning on the Power?

Good credit could save you from paying standard deposits running $150 – $300.

Getting a cell phone? Good credit could save you up to $1200 over a person with bad credit. Just less than a stellar credit history can result in a $400 deposit.

Pay Less to Drive

Not only will good credit score you a sweet low-interest loan on your car… it will also save you big time on insurance rates.

Getting a deal on car insurance is all about proving you're a low-risk driver. Insurers don't just look at your driving record to figure out if you're likely to get in a car accident. They will certainly look at your credit too.

You can be accident and ticket free, but a bad credit score will still cost you on your premium.

What does your credit have to do with your driving record?! Your behavior when it comes to paying your bills, as exhibited in your credit report, is seen as a key determining factor when it comes to how you will behave in other situations.

Insurers Believe Someone With a Good Credit Score:

• Will take fewer risks on the road
• Is less likely to file claims

According to a recent survey by Consumer Reports among eight popular auto insurers, a driver with top credit scores could save up to 31% on premiums than if credit scoring wasn't factored in. Those with bad scores could pay as much as 143% more.

Paying Your Bills Saves You Money

Paying your insurance premium in full instead of paying in monthly installments.

Most companies charge a fee to customers who choose monthly payments instead of paying a lump sum.

No matter what, besides paying your bills on time, the sure way to save on any kind of insurance is by getting multiple quotes. Different companies put different values on individual determining factors like driving records, credit history, and type of car. So be sure to shop around to get the best deal.