Credit cards provide the luxury of convenience, which is something most people are aching for these days. You can simply swipe your credit card for each purchase and pay a credit card bill once per month. You can even set up some of your payments — like subscription services — for autopay, which means you may never have to think about them again. Show
Provided you pay your balance in full and never pay interest, you can enjoy the benefits of credit without paying extra charges for your purchases. However, the opposite is also true, and you will pay interest on balances you carry from month to month. There are also risks that come with paying bills with credit, including the potential for long-term and life-altering amounts of debt. Before you begin paying your bills with your card, it’s important to have a clear plan for what cards you’ll use, what bills you’ll pay and how you’ll pay off your balance when your bill comes due. Can you pay bills with a credit card?You can pay bills with a credit card, provided the servicer offers this payment option. This means you can normally pay for most bills with plastic, whether that includes your utility bills, insurance premiums, bills for subscriptions (like Hulu or Netflix) and anything else you pay each month. Just make sure that your bill servicers aren’t charging a convenience fee to pay with a credit card, as this is common with some bills like utility bill payments. If you have to pay an extra 1 percent to 3 percent of your bill to pay with a credit card, it may not be worth it. Benefits of paying bills with a credit cardSometimes the benefits of using a credit card outweigh the drawbacks. If you’re wondering about the perks that come with using credit cards to pay bills, there are several to consider.
When you should not pay bills with creditThe benefits of using credit cards to pay bills shouldn’t be ignored, but there are plenty of reasons some people are better off avoiding credit altogether. When should you not pay bills with a credit card? Here are some of the signs to look for:
How to pay bills with a credit cardThe process of paying a bill with a credit card can vary depending on the type of bill. Obviously, you’ll pay for in-person expenses and bills with a credit card by swiping your card or dipping your card into a payment terminal. For other bills, you may be able to pay them by entering your credit card number and details into an online portal. Other times, you may be able to pay with a credit card by calling a customer service number and giving your card details over the phone. Some bills are significantly more difficult to pay with a credit card, like your auto loan, student loans or a home mortgage payment. However, you may be able to turn to third-party service providers like Plastiq to pay bills you can’t normally pay with a credit card. Just remember that third-party payers will always charge a fee for using their services, and that these fees can make your bills more expensive and negate any benefits you’re getting for using a credit card, such as rewards points. Keep in mind that you can’t directly pay a credit card bill with another credit card. Third-party companies like Plastiq don’t even allow it. What bills can you pay with a credit card?This can vary slightly depending on the companies you work with. However, you can try to pay the following bills and expenses with a credit card if they allow it: Mortgage payment or rentYou can’t typically pay your mortgage or rent payments directly with a credit card, but you may be able to use a third-party platform like Plastiq, RadPad or RentMoola to do so. Just remember that these platforms charge a fee each time you use them. For example, Plastiq charges up to 2.85 percent to pay bills with a credit card. Utility billsYou may be able to pay your electric bill, gas bill and other utilities with a credit card, without an added fee. To find out, log in to your online account management page to check or simply call and ask. Here are our picks for the best credit cards for utility payments. SubscriptionsSubscription services like Disney+ or an Instacart membership are perfect when it comes to paying with a credit card. You can set up automatic payments online, and you will not be charged an extra fee for doing so. InsuranceYou may be able to pay your homeowners insurance, auto insurance, health insurance and other insurance bills with a credit card, with no convenience fee. Make sure to check with your providers to see if this option is available. DaycareYou may be able to pay for daycare with a credit card, which is more likely if you use a large child care center. Also, check whether you can charge summer camps and after school care on your card. TaxesYou can pay taxes with a credit card as well, though you’ll almost always pay a fee for doing so. When it comes to your federal tax bill, for example, you can use three different third-party services for payment, and the lowest possible fee is 1.87 percent. Cellphone, internet and cableDefinitely use a credit card to pay your cellphone, internet and cable bills. You won’t have to fork over a convenience fee to do so, and you can set up credit card payments online and earn rewards on these purchases. Student loans and college tuitionSome student loan servicers may be willing to accept a credit card for your monthly payment, and you can usually pay student loans with credit with the help of a third-party company like Plastiq. Some colleges also accept credit cards as payment for tuition, room and board, but you should check to make sure you don’t have to pay any convenience fees. The bottom lineAt the end of the day, you should be aware of any fees you’ll incur paying bills with a credit card and refrain from charging purchases you can’t afford to pay back. Ultimately, paying your balance in full and on time can help boost your credit score and keep you from spiraling into a lifetime of debt and stress. Why can't I pay utilities with a credit card?Others, such as mortgage or rent and utility payments, usually can't be paid with a card directly because companies don't typically accept this method of payment. In some cases, the companies you work with might accept a credit card payment only if you pay an added fee.
What kind of bills can you pay with a credit card?There are certain types of bills you can usually pay with a credit card—but they may charge a convenience fee to do so. These could include: Utilities. Cable TV and internet services.. Mortgage payments.. Auto loan payments.. Student loan payments.. Is it better to pay utilities with credit card or bank account?Sometimes paying with a checking account can actually save you money. Some providers offer a discount when you pay with a checking account, because they don't have to pay for credit card processing. Call and ask if your service provider offers an incentive for paying in cash.
Can I pay electrician with credit card?You can pay a contractor with your credit card by filling out a credit card form or by using a smartphone app and accessory system. If keeping records is of the utmost importance to you, credit card payments are the right option for you.
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