Credit Cards

This is why I pay utility bills with a credit card

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Find out why it might be a good idea to pay some of your bills with a credit card.

Key points

  • By using a credit card to pay your bills, you may be able to earn credit card rewards.
  • You can also use your credit card benefits by doing this.

We all have to pay bills. But often we have the option to choose the payment method we use. If you’re strategic, you can earn valuable rewards by using your credit card to pay some of your bills. Find out why I choose to pay multiple utility bills with one credit card.

While some people still pay their bills with paper checks and rely on the mail to deliver them, I don’t. I love how simple it is to pay my bills online. It is fast and efficient.

I recently wrote about how I pay two of my bills through my online banking portal. I do this because those utilities charge payment processing fees when you pay through their payment systems. Therefore, I can eliminate the additional fees by using my bank’s bill payment system.

However, I pay many of my other bills with a credit card. There are two reasons why I do this. You may decide that this is a good move for you too.

Maximize your credit card rewards

The main reason I pay some utility bills with a credit card is to earn credit card rewards. I can maximize my rewards by charging routine expenses to my card. I already have the bill to pay, so I might as well earn rewards for doing so.

If you use credit cards to earn rewards, you might want to try this too.

Before you pay bills with a credit card, you’ll want to do two things:

  1. Check to see if you will be charged a credit card processing fee when paying this way.
  2. Choose the credit card that will earn you the most rewards.

It’s best to do this when there are no credit card processing fees. If not, you will pay more just to pay those bills.

The card you use matters. You may have a credit card that pays higher rewards on utility bills or one that pays a higher flat rate. Load the right card to maximize our rewards.

Pay with credit cards to activate valuable benefits

Another reason I do this is to use all the benefits of the credit card. One of my credit cards offers cell phone protection. My card issuer requires that I charge my cell phone service bill to the card. For this reason, I use this credit card to pay my cell phone bill.

If my cell phone is damaged, I can use these benefits to repair my phone or get a replacement phone. I recently used my cell phone protection benefits for repairs after accidentally damaging my phone. This overlooked credit card perk saved me over $300.

Many of the best credit cards come with valuable benefits. You may be able to take advantage of benefits like cell phone protection by charging some bills to your credit card.

The next time you’re about to pay a bill, first consider how you’ll pay. You may want to use a credit card to pay some of your bills.

However, be sure to only charge what you can pay in full. You can avoid costly credit card interest charges by paying your credit card balance in full each month.

If you’re looking for a new credit card that earns rewards, check out our list of the best rewards cards.

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