How to pay bills using credit card

What Bills Can You Pay With Your Credit Card?

Monthly bills seem to be growing every year. What used to be one cable package, has turned into three streaming services, two phone bills, and internet, all from different providers. That doesn’t take into account household utilities like water, heating, electricity, and more. But what if there was a way to be rewarded for paying your bills in a timely manner?

Table of Contents Show

What Bills Can You Pay With Your Credit Card?
Getting the Most Cashback from your Bills
Paying with Cable, Phone, and Internet with Autopay
Can you Pay for Streaming Services with a Credit Card?
Can You Pay Your Utility Bills with a Credit Card?
Looking to Pay your Rent or Mortgage with your Credit Card?
Paying off your Car Loan with a Credit Card
Doing Your Taxes with a Credit Card
Which bills can you pay with your credit card?
Should you pay bills with a credit card?
How to pay bills with a credit card the right way
Can you use a credit card to pay bills?
What bills can be paid via credit card?
How do you use a credit card to pay?
Is it smart to use a credit card to pay bills?

Some financial institutions offer reward cards that give you a percentage back with each purchase. The thrill of being rewarded by spending may have you asking yourself "is it good to pay bills with credit cards?"

The short answer is, entertainment and nonessentials can usually be paid with a credit card with no fees. Services, utilities, and taxes, can often be paid with a credit card but with a processing fee. Loan payments, are usually check or bank withdrawal payment only.

Getting the Most Cashback from your Bills

Depending on your credit card, you could be earning significant cashback when paying your bills. Let's take a look at each option more in-depth, to see how to get the most cash back while avoiding unnecessary fees.

Note- This article is not financial advice. Please spend responsibly when using your credit card.

Paying with Cable, Phone, and Internet with Autopay

Cable, internet, and cell phone companies are happy to ditch paper bills and, for the most part, will accept credit cards as a valid form of payment. These bills usually don’t have additional processing fees and can be set up with autopay.

Autopay is a great way to stay ahead of any reoccurring bills and will ensure your continued service. Setting up autopay for your phone is a no-brainer, as credit companies have begun to offer cellphone protection as an added benefit of some of their cards. By paying your phone bill with your Visa Empower card, you could be reimbursed for loss or damage of your cellphone and get hundreds of dollars back for repairs.

Learn About Visa Signature Empower

Can you Pay for Streaming Services with a Credit Card?

Yes. 95% of streaming services accept credit cards as payment.

Even if you rarely use a streaming service, you won't risk canceling it due to FOMO. Remember Tiger King? Paying for streaming services will get you cashback rewards so great, it should be criminal. Just ask Joe Exotic.

All of the top streaming services can be paid for with credit, from Hulu to Peacock to Spotify. On estimate, the average American spends $40 a month on streaming services. By using your Visa Empower card on each bill, you can passively rack up rewards without added expenses.

Can You Pay Your Utility Bills with a Credit Card?

Whether or not your home utilities provider offers credit cards as a valid form of bill payment is a toss-up. The best bet is to assume they accept credit cards, but with an additional convenience and processing fee.

Looking to Pay your Rent or Mortgage with your Credit Card?

While paying your rent or mortgage would be a surefire way to build your credit, you’ll have to turn to other bills to up your score. It's highly unlikely your lender or landlord would accept credit cards as a form of payment. If you are so inclined to pay off your rent or mortgage with a credit card, there are 3rd party solutions.

You can pay these companies the equivalent of your mortgage/rent plus a processing fee, and they will cut your mortgage lender/landlord a check. These processing fees could greatly inflate your bill, so check the percentage before paying for your home or apartment with a credit card.

Paying off your Car Loan with a Credit Card

Loans, like mortgages, are unlikely to be able to be paid with a credit card. If they can, they charge a significant processing fee. This fee will be much greater than any cashback you earn.

Doing Your Taxes with a Credit Card

If you’ve done your taxes (you should have at least once if you're reading this article) then you’re likely aware that you can pay some taxes with your credit card. But, once again, processing fees apply.

This is just a brief list of the common bills and services that we usually pay each year. If you are punctual in paying your monthly bills, and see the potential of growing your credit and your cashback, then consider a Cashback Credit Card, like Visa Signature Empower Card.

Last Updated: October 15, 2021

4 min read

You can pay bills with a credit card as long as the entity you’re paying allows it, and many do. Paying bills with a credit card can streamline your bill-pay process, plus you might be able to earn rewards. That said, to avoid costly interest payments on bills, try to pay off your credit card balance in full each month. Consider these tips for using your credit card responsibly when paying bills:

Which bills can you pay with your credit card?

More than you might think. Generally, you can use a credit card to pay for bills like:

Utility bills, including water, gas and electric
Cellular or landline phone service
Cable and internet
Streaming and subscription services
Insurance
Storage
Medical bills
Federal and state taxes

If you’re not sure about a particular bill, check with the billing department to verify their credit card acceptance policy.

Should you pay bills with a credit card?

There are some pros and cons to paying bills with a credit card. Weigh the good against the bad to decide if it’s the right move for you. Here’s a breakdown of what to consider:

The pros:

Paying with a credit card can save you time.Setting up automatic payments for bills using your credit card could make it easier to avoid late fees and reduce the amount of time you spend managing your finances.
You could earn rewards. Rewards credit cards like those from Discover generate cash back, miles or points that you can use toward travel, gift cards and more. If you have a card that pays cash back on every purchase, for example, using it to pay bills could put some of what you spend back in your pocket.
Paying bills with your credit card can help you budget. When you’re charging all of your bills to one credit card each month, it’s easier to get a bird’s eye view of where your money is going. You can track what you owe, then allot a lump sum to cover all of those expenses when you pay your credit card bill at the end of the month.

The cons:

You might run into fees. One potential downside of paying bills with a credit card is that some vendors and services tack on a credit card processing fee. You’ll have to weigh those fees against the benefit you’d get from using the credit card, but some fees are hard to justify. If your electric company charges $5.95 to accept your credit card payment, for instance, it may be better to pay with another method if you can swing it.
Interest charges can apply if you carry a balance. If your credit card charges a high annual percentage rate (APR) for purchases and you don’t plan to pay your credit card bill in full, paying with a credit card could be an expensive way to cover your bills. That’s especially true if you’re using your credit card to pay an interest-bearing loan, which means you’d be paying interest on interest.

How to pay bills with a credit card the right way

If you’re planning to pay bills with a credit card, here are a few best practices to keep in mind:

Stick with one card for paying bills. Choosing one card to pay bills makes more sense than spreading payments out over several cards, from a convenience and tracking perspective. If you’re angling for rewards, be sure that the card you choose offers rewards for everyday purchases, including bill payments.
Plan to pay your credit card in full each month. Paying interest on any bill paid with your credit card increases the cost of those bills, and it can diminish the value of any rewards you may be earning. When you’re mapping out your budget, be sure to set aside enough money in reserve to pay your credit card in full when the bill comes due.
Keep an eye on your credit utilization ratio. Your credit utilization ratio, or the amount of your available credit you’re using, is one factor that impacts your credit score. If you’re charging close to your card limit or maxing it out every month to pay bills, you may be causing your credit score to fluctuate.
Don’t put large bills on a credit card if you can’t pay them. A rule of thumb when using your credit card: Don’t spend more than you can afford or else it could get out of hand very quickly. For example, if you pay your mortgage with your credit card, instead of paying 4 percent interest on your mortgage, you could end up paying 16 percent, 22 percent or higher.

A credit card can come in handy when you have bills to pay, but it’s important to look at the pros and cons of paying with credit. Do your homework so you understand the potential cost involved and weight those against any rewards you stand to earn.

Can you use a credit card to pay bills?

Many bills can be paid with a credit card. Just be mindful that some companies add a convenience or processing fee in order to do so. When you make consistent payments each month, paying bills with a credit card can be a great way to grow your credit.

What bills can be paid via 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..

How do you use a credit card to pay?

Credit cards are easy to use. If you go into a store, for instance, you may be prompted to insert your card in a chip reader or swipe it at the checkout. You can also add your card to digital wallet apps for contactless payments in stores.

Is it smart to use a credit card to pay bills?

Automatic payments Using your credit card for monthly bills helps you avoid a late fee (and possibly keep the lights on). This is especially helpful for monthly bills that are a fixed amount, like a gym membership.