Can You Pay A Bill With A Credit Card? A Complete Guide

Paying bills is a part of adult life that no one can avoid From utilities to subscriptions to loans, those monthly charges sure add up. With so many bills to keep track of, it can be tempting to put them all on autopay and call it a day But what if you could actually earn rewards for paying your bills? That’s where credit cards come in.

Many credit cards today offer robust rewards programs, with some cards providing cashback on every purchase. With the potential to earn 1-5% back on spending, you may be wondering: can you pay bills with a credit card to maximize rewards?

The short answer is yes, you generally can pay recurring bills with a credit card. However, it depends on the type of bill and your payment method. While paying bills with credit cards can score you points and cashback, there are also risks if you can’t pay off the balance each month.

Below is a complete guide on what bills you can pay with a credit card, pros and cons to watch for, and tips for maximizing rewards responsibly.

What Bills Can You Pay With a Credit Card?

When it comes to rewards earning potential, not all bills are created equal. Here are some common recurring expenses you may be able to put on a credit card:

Utilities: Most utility companies accept credit cards, though some may charge processing fees. This includes electric, gas, water, trash, and sewer bills.
Insurance: Car, home, renters, and health insurance providers typically allow credit card payments with no processing fees.
Phone/Internet: Mobile phone bills, landlines, and internet services can generally be paid by credit card with no extra fees.
Cable/Streaming: Satellite, streaming services like Netflix and Hulu, and cable TV bills can all go on a credit card.
Rent/Mortgage: You usually can’t pay these directly with a credit card, but third-party services like Plastiq will accept your rent/mortgage payment and send a check for a processing fee.
HOA Fees: Homeowners associations accept credit cards for HOA payments in most cases.
Auto Loans: Similar to rent, you’ll need to use a third-party processor like Doxo to pay a car loan with your credit card for a fee.
Federal Taxes: The IRS allows you to pay taxes owed with a credit card through third-party processors. Fees apply.

As you can see, almost any bill that doesn’t require an automatic bank account withdrawal can go on a credit card. But watch out for extra processing fees, which can eat into your rewards earnings.

Pros of Paying Bills with a Credit Card

Assuming you pay off your bill in full each month, here are some potential benefits of charging recurring expenses:

Earn rewards: The #1 reason to put bills on a credit card is to earn points, miles, and cashback on mandatory purchases.
Convenience: Many credit card issuers allow you to set up autopay or schedule one-time payments online.
Payment tracking: Having a consolidated record of bill payments can make managing finances easier.
Build credit: Making on-time payments shows credit bureaus you can responsibly handle debt.
Purchase protection: Credit cards provide extended warranties, protection from stolen or damaged items, etc. Debit cards do not.
Float time: You’ll have the grace period between the statement closing date and due date to pay, giving you extra time to have the money in your bank account.

As you can see, paying with plastic comes with quite a few perks beyond just earning rewards. But there are also some drawbacks to look out for.

Cons of Paying Bills with a Credit Card

While credit cards make bill pay more rewarding, here are some potential pitfalls:

Processing fees: Some merchant categories charge extra fees for credit card payments, which eat into your rewards earnings.
Higher interest charges: If you carry a balance, credit card interest rates are almost always higher than personal loans or mortgages.
Credit utilization: Maxing out cards to pay bills can negatively impact your credit score by driving up your utilization ratio.
Late fees: Forgetting to pay your credit card balance on time leads to late fee penalties.
Harder to dispute errors: Disputing billing errors on credit card statements is more difficult than with bank accounts.
Makes budgeting confusing: Using a credit card vs direct bank account withdrawals makes it harder to track cash flow.

The bottom line is credit cards make bill payment more complex overall. While responsible use can net you rewards, it’s critical to avoid high balances and interest charges.

Tips for Paying Bills with a Credit Card Responsibly

If you want to maximize rewards without falling into debt, follow these tips for smart credit card bill pay:

Automate payments to avoid late fees if you plan on putting bills on autopay.
Pick the right card based on category bonuses that match your biggest bills.
Pay your balance in full each month to avoid interest charges. Set payment reminders.
Watch your utilization and keep it below 30% of your total credit limit.
Compare processing fees charged by merchants and consider bills with no fees first.
Have a plan for payment if your credit card is lost, stolen, or compromised.
Use bank autopay for loans and bills that charge high credit card fees.
Review statements carefully to catch any billing errors quickly. Disputes are harder on credit cards.
Make a budget so you know exactly how much your monthly bills will cost on the card.
Have an emergency fund to draw from in case you can’t pay a credit card bill in full.

The key is to crunch the numbers, set up a system that works for you, and pay off balances each month. Used responsibly, credit cards can help you earn hundreds in rewards every year on mandatory bills.

The Bottom Line: Should You Put Bills on a Credit Card?

Credit cards offer a rewarding way to pay recurring expenses, with robust points and cash back programs on every purchase. Nearly any household bill is fair game for charging if you want to maximize rewards.

However, bills that can’t be paid directly with a credit card often incur processing fees that eat into your earnings. And carrying a balance leads to costly interest charges that outweigh rewards.

Ultimately, paying bills with a credit card only makes sense if you have a plan to pay off your statement balance in full each month. Avoid high utilization ratios and watch out for fees. Automate payments, review statements closely, and budget diligently.

If you use credit cards responsibly for bills, they can take your finances to the next level with signficant cash back and travel redemptions. But tread carefully, as debt and interest fees can quickly negate any rewards earned. Evaluate your expenses, spend within your means, and pay on time.

Can You Pay A Bill With A Credit Card

Key points about: paying bills with a credit card

You can pay some bills with a credit card, such as utility, phone, and medical bills.
A credit card cash advance or balance transfer may be options for bills you cant typically pay with a credit card.
Paying a bill with your credit card can incur interest charges if you don’t pay the full amount by your card’s due date.

These days, there are companies that allow you to pay bills with a credit card. Charging your bills may help streamline your bill-pay process, and you might even earn rewards for your spending. But you’ll need to pay off your credit card balance in full each month to avoid paying interest. Here are some things to consider about using your credit card to pay bills.

Other ways to pay bills with your credit card

There are bills you cant typically pay with a credit card, like mortgage, student loan, and auto loan payments. But there are ways to utilize your credit card to pay these and other expenses.

Some credit cards allow you to take a cash advance, where you borrow cash against your credit limit. There’s usually a cap to how much cash you can borrow, and interest charges (usually at a rate higher than your purchase interest rate) and fees may apply. In addition, interest charges often start the day you withdraw the cash from your credit card account, making this form of borrowing a costly option for paying bills. It may be best to save a cash advance for emergencies and not use it for a monthly bill.

Another option for paying certain loans with high interest rates is a balance transfer to a credit card with a lower interest rate. Most balance transfers charge a fee (usually a percentage of the amount you’re transferring). But you may be able to save on interest with a low intro APR balance transfer. Some credit card companies offer new cardmembers low introductory rates.

Debit Card vs Credit Card – What should I use on paying Bills, Online/Store shopping, ETC…

FAQ

Can I use credit cards to pay bills?

You can pay some bills with a credit card, such as utility, phone, and medical bills. A credit card cash advance or balance transfer may be options for bills you can’t typically pay with a credit card.

Can I use a credit card to pay off bills?

The only ways you might be able to use a credit card to pay your bill are through a balance transfer or cash advance, but they could come with fees that add to your debt, among other considerations.

Can I pay someone’s bill with my credit card?

In short — yes, it is possible to pay someone else’s credit card bill with your credit card, but the process isn’t straightforward.

Is it possible to pay credit card bill?

With the NEFT facility, you can pay your Credit Card bills online from any other bank account. All you need to do is: Login to the Internet Banking facility of your desired bank account and select its National Electronic Funds Transfer (NEFT) option.

Should you put Bills on a credit card?

Avoid putting bills on a credit card because you can’t afford to pay them with cash. If you’re having trouble paying your bills, a credit card could buy you a little time. But routinely using your credit card to pay bills you can’t afford could end up costing you a lot in interest and making your situation worse.

Can you pay bills with a credit card?

Some lenders and service providers let you pay bills with a credit card. Others may require payments directly from a bank account or debit card. Bills you can generally pay with a credit card include utilities, insurance, phone services, internet, cable and sometimes rent or mortgage payments.

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.

Are credit cards good for paying bills?

Credit cards make shopping easier, and they can also make paying your bills on time a breeze. You have to pay bills one way or another, so why not let them count toward improving your credit score and earning you cashback rewards. Of course, there are some risks that come with using your credit cards for paying bills.

Should I pay my monthly bills by credit card?

Generally speaking, paying your monthly bills by credit card can be a good idea as long as you’re able to adhere to two rules. Always pay your statement balance in full and on time each month. Avoid putting bills on a credit card because you can’t afford to pay them with cash.

How do I pay bills with my credit card?

There are different ways to pay bills with your credit card, depending on the type of bill and the situation. If you’re paying a bill in person, you’ll use a payment terminal to swipe, insert or tap your card. If you’re paying over the phone, you’ll give your card details to a customer service representative.