Why rounding off your payment is not a good idea

Many people will round off their payment amount when they put it in.  For example if their payment is $72.33 they will pay $73.00 or $75.00.

Believe it or not this may be a bad idea.  Here is why.

Now this scenario really only applies more times than not to manual payments but here is the reasoning.  Let’s say that you forgot to put your account number on your check.  When your servicer gets it they will put it in a file for a set amount of time to see if this payment is claimed.

So let’s say you find out your cash was checked (as it will be in this case) but not applied to your account.  When you call in to have your servicer find the information do you think it’s easier to find a payment for $72.33 or $75.00?  The more common the payment amount the harder it is to locate.  This is especially true for payments of $50.00, $100.00, etc.

This does not mean you shouldn’t pay more than your payment.  But instead of paying $75.00, pay $75.06.  This will help you if your payment ever goes to suspense.  Plus as a food for thought they say for those of us who still balance our checkbook, it is easier to find a mistake with not round numbers!

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