This Is Why I Pay Utility Bills With a Credit Card

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Find out why it may 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 put your credit card perks to use by doing this.

We all have to pay bills. But we often have a choice as to what 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 several utility bills with a credit card.

While some people still pay their bills by paper check and rely on snail mail to deliver them, I don’t. I love how simple it is to pay 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 those utility companies charge payment processing fees when paying through their payment systems. So, I can eliminate extra fees by using my bank’s bill pay 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 to make, 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 to pay the bill, so I might as well earn rewards for doing so.

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

Before paying 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 the most rewards.

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

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

Pay with credit cards to activate valuable benefits

Another reason I do this is to utilize all of the credit card benefits. One of my credit cards offers cell phone protection. My card issuer requires me to 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 get my phone repaired 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 perks. 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 will pay. You may want to use a credit card to pay some of your bills.

However, make sure you charge only what you can afford to pay in full. You can avoid expensive credit card interest charges by paying your entire credit card balance every month.

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

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