Pay Bills With Credit Card For Rewards – Paying your monthly bills with a credit card can reap the benefits faster, but are there any downsides? Depending on the bill, it may make sense to pay it with a credit card. However, this is not the case for some accounts.

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Pay Bills With Credit Card For Rewards

Pay Bills With Credit Card For Rewards

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Of course, the offers on our platform do not represent all financial products, but our aim is to show you as many opportunities as possible.

Paying monthly bills seems like a good way to earn more rewards. But is it smart to pay bills with a credit card?

Not all accounts are created equal, so you need to evaluate each one to determine which bills make sense to pay with a credit card. But first, let’s take a quick look at the pros and cons of paying plastic bills.

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In general, paying your monthly bills with a credit card can be a good idea as long as you follow two rules.

If you’re having trouble paying your bills, a credit card can buy you time. But habitually using a credit card to pay bills you can’t pay can cost you a lot of interest and make the situation worse. On the other hand, if you pay regular bills that don’t exceed your budget, using a credit card has its advantages.

What bills can you pay with a credit card? And which bills are charged more if you pay by card? Let’s see which types of bills make the most sense to pay with a credit card.

Pay Bills With Credit Card For Rewards

Mortgages seem to be the biggest monthly expense for many people, so it’s an easy way to get a credit card sign-up bonus or rack up significant points.

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Unfortunately, virtually no mortgage servicer will allow you to pay with a credit card. And they have good reason: Lenders don’t want to pay credit card fees for processing payments.

If you are lucky enough to find a mortgage servicer that allows you to pay your mortgage with a credit card, be prepared to pay a convenience fee that will likely outweigh the benefits you expect to receive.

If you don’t mind paying, third-party services like Plastiq could be a good option. The company charges your credit card and sends a check to your mortgage (or anyone else you want to pay) with a standard rate of 2.9%. Before using these types of services, you need to calculate whether the payment is worth the premium.

If you are renting instead of paying a mortgage, you may still have difficulty finding a landlord who will accept anything other than a check or cash as your monthly rent payment.

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If you’re lucky enough to rent from a company with more complicated accounting, consider using a credit card to pay your rent, especially if it doesn’t have a convenience fee.

Even if landlords only accept cash or check, you can still use a service like Plastiq or look for a credit card that allows you to pay rent through the portal. None of these options come without costs, like convenience fees, interest, or taxes, but you have to decide if the benefits outweigh the benefits.

Auto lenders, like mortgage lenders, are less likely to accept credit card payments. They also want to avoid processing fees.

Pay Bills With Credit Card For Rewards

A credit card can be used to pay off a car loan, but it requires a lot of financial discipline. If you find a credit card offer with 0% APR on balance transfers, you can transfer your car loan to a credit card. Before you embrace this idea, however, there are caveats.

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This option only makes sense if you choose a card with a 0% introductory interest rate applicable to balance transfers. You must also pay the balance until the interest rate increases after the introductory period. Otherwise, you’ll pay interest on your remaining credit card debt, and your credit card interest rate will likely be higher than your original car loan.

There are other disadvantages. For example, you may not be able to transfer your entire car loan to a balance transfer card. Depending on the card, you may be charged a balance transfer fee. It’s also likely to have a negative impact on your credit, as transferring a large balance increases your credit utilization.

Despite all the warnings, paying for a car with a credit card is generally not the most practical option. You have to weigh the negatives and decide if it makes sense for you.

Credit card fees are easy to determine with most insurers, but do your homework to make sure you won’t have to pay any fees. Some insurers do not charge a fee, while others are only free if you pay the premium in full and not in installments.

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So it may make sense to pay these bills with a credit card, but only if you can avoid the fees.

If you are self-employed, you must pay health insurance premiums to your insurance company, which are eligible expenses for credit card premiums.

However, not all health insurers accept credit card payments. If your insurance company still accepts cards, take the opportunity to sign up to pay your insurance premiums with a credit card.

Pay Bills With Credit Card For Rewards

If you are covered under the Affordable Care Act, insurers are not required to accept credit cards unless required by the applicable state. As such, payment options may vary from state to state and between insurers.

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For example, you can pay income taxes with a credit card, but the IRS charges a fee for this convenience. Several variables, such as the amount you owe and the federal taxes you want to pay, can also affect your decision.

Cell phone, cable, and Internet service providers generally accept credit cards. These fees are easy to set up and many of these companies do not charge any fees.

Many providers let you pay your monthly bill with a credit card, but you may have to pay a convenience fee.

And if you’re trying to make as much money as possible, the higher the utility bill, the better off you’ll be paying with a credit card—especially with a flat convenience fee. But you’ll want to compare your average bill and payment to the rewards you can see on your card to see if it’s worth it.

Pay Credit Card Bills

Most subscription services, such as Pandora, Netflix, Spotify, Hulu, and streaming network subscription services, encourage payment by credit card and do not charge a fee. These are great monthly bills that can be put on a credit card.

If you use a cash back card, consider investing the money you earn toward your student loan to pay it off before the deadline.

If your finances are in order, you should pay part of your monthly bills with a credit card. However, it’s important to prioritize paying your credit card balance every month.

Pay Bills With Credit Card For Rewards

With careful planning, you can pay most bills with a credit card. You can earn rewards, get a sign-up bonus, and even get a little more payment time by adding monthly charges to your credit card whenever it makes sense.

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About the author: Jill Terry is a freelance writer who writes articles for Credit Karma. Read more If you want to get the most money back from your monthly bills, the cards below offer great rates and additional benefits, such as discount programs and fee waivers.

The UOB One card is definitely the best discount credit card for people who regularly spend around S$2,000 a month. At this spending level, cardholders earn a total of 5% cashback up to S$300 per month (S$100 per month), with rates rising to 10% on Grab & Select UOB Travel and 6% on utility bills public. This gives cardholders one of the best earning opportunities on the market, up to S$1,200 per year.

The UOB One card is especially suitable for paying bills thanks to its tiered discount structure. Cardholders’ cashback percentage and limit are based on the lowest spending during the quarter (a total of 3 months). Consistency is key as even below S$2,000 per month cashback drops from 5% to 3.33% and higher earnings

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John Pablo

📅 Born: May 15, 1985 📍 Location: New York City 🖋️ Writer | Financial Enthusiast Welcome to my corner of the web! I'm John Pablo—a finance enthusiast and writer passionate about making money matters simple and accessible.

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