Paying bills is a necessary part of adult life But for many people, writing checks, buying money orders, and logging into multiple accounts to make payments can be a hassle Using a credit card to pay bills can streamline the process and provide other benefits too. Here’s what you need to know about paying bills with credit cards.
Which Bills Can You Pay With a Credit Card?
You have several options for paying recurring expenses like utilities, subscriptions, insurance premiums, medical bills, and more. Which bills you can pay with a credit card depends on the billing company.
Many utility companies such as electric, gas, water, and garbage collection accept credit cards. However, some may charge a convenience fee.
Most cable, internet, and cell phone providers accept credit cards without fees.
Many insurance companies accept credit cards for premium payments including auto, home, renters, and health insurance.
Most subscription services like Netflix, Amazon Prime, gym memberships, newspapers, and magazines accept cards.
Many medical providers accept credit cards for copays, appointments, and procedures. Some may charge a fee.
Charitable donations can be made via credit card in many cases.
Some landlords and property management companies accept rent payments by credit card, but a fee may apply.
Bills You Typically Can’t Pay With a Credit Card
Some common recurring bills cannot be paid directly with a credit card:
Mortgage payments
Auto loans
Student loans
Personal loans
Most government payments like income taxes and property taxes
Credit card network rules prohibit paying loans owed to the same institution with that card. And government entities and large lenders rarely accept credit cards due to the high fees charged by card networks.
Should You Use a Credit Card to Pay Bills?
Paying bills with a credit card can make sense in many situations, but consider a few key factors:
Credit card rewards – If your card earns cash back, points, or miles, you can rack up rewards by charging bills you have to pay anyway. Just don’t overspend to earn more rewards.
Convenience – Making one payment online rather than multiple payments through various platforms saves time. Setting up autopay can further simplify the process.
Float – Paying with a credit card gives a grace period between the purchase and when the payment is due. This time lag creates “float,” providing short-term access to the cash.
Consumer protections – Credit cards provide extended warranties, return protections, fraud liability limits, and other features you don’t get with cash or debit.
Credit building – Responsible credit card use demonstrates you can manage credit and helps build your credit scores.
Budgeting – Having all expenditures on one statement makes it easy to track monthly spending.
Just be sure you pay off the balances in full each month to avoid interest charges. And watch out for convenience fees that might wipe out rewards earned from card use.
Credit Card Bill Pay Options
If you can’t directly pay a bill with a credit card, you still have options to use your available credit for bill payments:
Cash advances – You can obtain a cash advance from an ATM or bank with your credit card’s PIN. It starts accruing interest immediately, so should be a last resort.
Balance transfers – Transferring an existing balance from another card provides accessible credit you can use to pay bills. It may incur a fee but saves on interest.
Buying gift cards – Some merchants sell branded gift cards you can purchase with a credit card and use those funds to make bill payments.
Third-party payment services – Companies like Plastiq and PayPal allow you to pay any merchant or person with credit and charge a processing fee.
Peer-to-peer payments – Services like Venmo and PayPal enable personal credit card payments to others that can reimburse expenses.
These options come with fees and/or interest charges, so compare costs before using credit for bills when better payment methods are available.
Tips for Paying Bills With Credit Cards
Follow these tips to successfully integrate credit card payments into your bill pay strategy:
Review statements for convenience fees – One overlooked charge can outweigh rewards earned.
Set payment reminders – Calendar alerts prevent late fees if you use autopay.
Pick the optimal card – Choose a rewards card suited for your typical monthly spending.
Monitor balances – Keep balances low to avoid credit damage.
Pay in full each month – Interest charges add up and indicate risky credit use.
Use bank bill pay too – Combine methods to maximize rewards across bills.
Compare costs – Weigh fees versus interest before using credit creatively.
Have a repayment plan – Don’t take on credit card balances you can’t eliminate quickly.
The Bottom Line
Paying bills directly with general purpose credit cards is convenient, earns rewards, streamlines recordkeeping, and leverages consumer protections. But it requires responsible use to avoid interest charges. For bills you can’t pay with a credit card, explore alternate methods like cash advances or third-party bill pay services if needed, but compare costs first. Integrating credit card payments into your overall bill payment strategy takes some planning but can simplify your finances.
Benefits of paying bills with a credit card
Making bill payments with your credit card can have some advantages. These could include:
- Credit-building. If you use your card responsibly over time by doing things like paying your statement on time each month, it can help you build a credit history and improve your credit scores.
- Convenience. Some credit cards include a variety of digital benefits. For example, Capital One offers AutoPay, which lets you set up automatic payments for your monthly credit card bills.
- Rewards. You may be able to earn rewards like cash back, points or miles when you pay bills with a rewards credit card.
- Flexibility. However you choose to payâonline, over the phone or in personâyou can generally use a card.
- Protection. Credit card statements can act as proof of payment in a dispute.
Can you pay bills with a credit card?
You may be able to use your credit card to pay bills. You may also be able to pay your bills with a debit card.
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?
Depending on the type of bill and the merchant, you may be able to use a credit card to pay bills. Mortgages, rent and car loans typically can’t be paid with a credit card. You may need to pay a convenience fee if you pay some bills, like utility bills, with a credit card.
Is it OK to pay phone bill with credit card?
Most bills can be paid with a credit card, except for essential services like electricity, water, and taxes for example. Here are some of the most common bills you can pay with a credit card: streaming services, cell phone, internet, and tv bills, and.
Is it possible to pay credit card bill?
Visit any nearest ATM of your credit card issuer with your debit card, insert your debit card into the ATM kiosk, select credit card bill payment option and follow the instructions to make credit card payment.
How do I pay a credit card bill?
How to Pay Credit Card Bills in 5 Steps: Link a checking account to your credit card, using the account number and routing number for the checking account. Make the checking account the primary source for credit card payments. Schedule recurring payments to be made monthly by the due date, or choose to make a one-time payment on a certain date.
Can you pay bills with a credit card?
Depending on the type of bill and the merchant, you may be able to use a credit card to pay bills. Mortgages, rent and car loans typically can’t be paid with a credit card. You may need to pay a convenience fee if you pay some bills, like utility bills, with a credit card.
Should you use a credit card for bills?
Credit cards are an acceptable form of payment for most bills, and they’re often the most convenient way to pay. You can set up autopay for most bills, which means you don’t even have to worry about missing the payment due date. But there can be serious downsides to using a credit card for bills.
When can I pay my credit card bill?
According to the law regulated by the Consumer Financial Protection Bureau, payments received by 5 p.m. must be credited the same day. Your due date isn’t the only time you can make a payment. You can also pay your bill early or make multiple payments each month, depending on the card. Should you carry a balance your credit card?
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