That’s 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 may also be able to use your credit card benefits by doing this.

We all have to pay bills. But we often have a choice of which 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 chose to pay multiple utility bills with a credit card.

While some people still pay their bills by paper check and rely on postal mail to deliver them, I don’t. I like the simplicity of paying my bills online. It’s quick and efficient.

I recently wrote about how I pay two of my bills through my online banking portal. I do this because these utility companies charge payment processing fees when paying through their payment systems. So I can eliminate the extra charges 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 also decide that this is a good decision for you.

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 everyday expenses to my card. I already have to pay the bill, so might as well earn rewards for that.

If you use credit cards to earn rewards, you can try that too.

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

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

It’s best to do this when there are no credit card processing fees. Otherwise, you’ll pay more just to pay those bills.

The card you use matters. You can have a credit card that pays higher rewards on utility bills or a card that pays higher flat fees. 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 me to charge my mobile 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 have my phone repaired or get a replacement phone. I recently used my cell phone protection benefits for repairs after I accidentally damaged my phone. This overlooked credit card perk saved me over $300.

Many of the best credit cards offer valuable perks. You may be able to enjoy benefits such as protecting your cell phone by charging your credit card for certain bills.

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

However, be sure to only charge what you can afford to pay in full. You can avoid high interest charges on your credit card by paying off 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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