Paying bills is a necessary but often mundane part of adulthood. We all have recurring expenses like rent utilities, subscriptions and more that need to be paid regularly. But what if you could turn bill pay into a rewarding experience that also boosts your credit? Enter bill pay with a credit card.
Bill pay with a credit card allows you to earn rewards like cashback or travel points on your regular expenses. It can also help build your credit history when payments are made on time. However not all bills can be paid via credit card. And you need to be cautious of processing fees that can outweigh rewards earned.
This complete guide covers everything you need to know about bill pay with a credit card. Read on to learn which bills you can pay with a card, pros and cons, tips for responsible bill pay, and more.
What Bills Can You Pay With a Credit Card?
You have a good number of options when it comes to paying bills with a credit card. Some of the most common monthly expenses you can charge include:
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Utilities: Electric, gas, water, trash, and sewer bills often allow credit card payment. Just watch out for convenience fees.
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Phone service: Most cell phone and landline providers accept credit cards with no fee.
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Cable and internet: These services typically let you pay via credit card at no extra cost.
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Insurance: Car, home, health, and life insurance frequently permit credit card bill pay.
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Subscriptions: From Netflix to Amazon Prime, subscription services take credit cards.
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Rent and mortgage: You’ll usually need a third-party service, which charges a fee.
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Property taxes: Payable by credit card but with processing fees.
As you can see, you have plenty of options for earning rewards via credit card bill pay. Just avoid bills with high processing fees that diminish rewards earned.
The Pros of Paying Bills With a Credit Card
Using credit cards for bill pay offers a few nice perks:
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Earn rewards: Get cashback, points, miles, or other bonuses on regular expenses.
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Build credit: Making on-time payments establishes positive payment history.
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Payment record: You have proof of payment if any disputes arise.
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Convenience: Pay bills quickly online versus mailing checks.
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Set up autopay: Never miss bill due dates when you automate payments.
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Fraud protection: Get funds back if your card number gets stolen.
As long as you pay your balance off in full each month, bill pay with a credit card provides some useful benefits.
The Potential Downsides of Credit Card Bill Pay
However, there are also some risks associated with paying bills via credit card:
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Debt risk: Carrying a balance leads to high-interest charges.
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Processing fees: Some merchants charge for credit card payments.
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Credit damage: High balances hurt credit through increased utilization.
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More bills: You must then remember to pay the credit card bill.
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Reward erosion: Fees can sometimes cancel out rewards earned.
Credit card bill pay is best for folks who will pay balances off in full each month. Otherwise, the downsides often outweigh the upsides.
Tips for Responsible Credit Card Bill Pay
Follow these tips for keeping credit card bill pay rewarding, not risky:
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Only charge bills you can pay off in full each month.
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Review statements for errors to avoid paying incorrect charges.
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Pick a card with rewards you’ll use, such as cash back or travel points.
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Calculate rewards earned versus any fees to ensure you come out ahead.
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Monitor your credit through free services for hits to your scores.
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Set up autopay to avoid late fees but keep an eye on your balance.
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Consider paying halfway through each month to lower your average daily balance.
Responsible credit card bill pay means always paying your balance off on time and in full.
Can You Pay These Common Bills With a Credit Card?
Wondering about specific bills? Here’s a breakdown of options for common expenses:
Rent
Paying rent with a credit card usually requires using a third-party service that charges a processing fee. Weigh whether rewards outweigh costs before paying rent on plastic.
Mortgage
Like rent, you’ll generally need to go through an intermediary service with associated fees if you want to pay your mortgage via credit card.
Auto Loan
Most auto lenders don’t permit credit card payments for car loans. The few that do typically have high processing fees.
Utilities
Many utility companies accept credit cards but may charge processing fees ranging from $2-$5. Run the numbers in terms of rewards earned before deciding.
Insurance
Car, home, health, and life insurance providers often allow customers to pay premiums with a credit card at no extra cost.
Property Taxes
You can pay property taxes by credit card through some municipalities and third-party processors. Expect to pay processing fees.
Subscriptions
Monthly subscriptions like Netflix, Hulu, Amazon Prime, and more can be charged to your credit card to earn rewards.
As you can see, credit card bill pay options vary by the type of expense. Maximizing rewards means focusing on bills you can pay for free via credit card.
Credit Card Bill Pay: The Bottom Line
Bill pay doesn’t have to be a boring or stressful experience. Paying with a rewards credit card allows you to earn cash back, points, or miles on regular monthly expenses. However, you want to avoid processing fees that diminish rewards earned.
Stick to bills you can pay by credit card for free, like subscriptions, insurance, and some utilities. Only charge what you can afford to pay off each month. And automate payments so you never miss a due date. Follow these tips, and bill pay can become a rewarding routine.
Debit Card vs Credit Card – What should I use on paying Bills, Online/Store shopping, ETC…
FAQ
Can I use a credit card for bill pay?
Can I use my credit card to pay off bills?
Can I pay someone’s bill with my credit card?
Can I make a credit card bill payment?
Should you pay bills with a credit card?
Using the right credit card can also reap rewards such as travel miles or cash back. Paying bills, like utilities and insurance premiums, with a credit card can earn you perks—but you need to stay on top of your credit card usage and payments to make it worthwhile. Here’s a closer look at the benefits and risks of paying bills with a credit card.
Should I pay my credit card bill online?
Paying your credit card bill online forgoes the stamp and envelope, allowing your payment to be received more quickly. Many card issuers offer automatic payments via your bank account or debit card each month, so you don’t have to worry you’ll forget a payment.
Should I use my checking account to pay bills?
You should also use your checking account to pay bills in the following situations: Your provider charges a fee for paying by credit card. In most cases, you’ll pay more in credit card convenience fees than you’ll gain in card rewards and perks for using a credit card.
What is the best way to pay credit card bills?
The best way to pay credit card bills is online with automatic monthly payments deducted from a checking account. This minimizes the chances of missing a credit card payment due date, and it can also help cardholders avoid interest charges, depending on the type of payment scheduled.
What bills can you pay using credit card?
Here’s a breakdown of common bills you can often pay using credit cards: Utilities: Many electricity, gas, water, and cable/internet providers accept credit card payments. Mobile phone bills: Most cell phone carriers accept credit card payments. Landline phone bills: While less common, some landline providers accept credit card payments.
Can you pay utilities with a credit card?
You can pay utilities with a credit card, but there may be a convenience fee. Before using credit cards to pay utility bills, consider the pros and cons. Can I Pay Bills With a Savings Account?
