Learn 2 easy ways to pay your bills with a credit card | finder.com
paying bills with a credit card

Want to pay your bills with a credit card?

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Weigh the pros and cons of using a credit card for bill payments.

There are plenty of reasons to consider using your credit card for bills, including convenience, easy cash flow management and the ability to earn points and rewards. However, it doesn’t come without its costs.

Here’s everything you need to know before deciding whether to pay your bills on plastic.

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How to pay your bills with a credit card

There are two main ways you can use your credit card to pay bills: autopay and one-time payments.

1. Autopay

Bills that are charged at a set time each week, month or year can usually be set up as an autopay from your credit card account. This could include your mortgage payments, insurance premiums, home utility services, gym membership, Internet and other subscriptions for entertainment services like Netflix.

How do you set up an autopay with your credit card?

  1. Find out if there is an autopay option through your service provider.
  2. Provide your chosen credit card account details.
  3. Confirm the details and authorize the autopay agreement.

What are the key factors to consider when using autopay to pay bills?

  • Autopay fees. Some service providers may charge a fee, but most prefer that you set up autopayment and have made this a fee-free mode of payment.
  • Declined payment. You could be charged fees twice – once by the service provider and once by your credit card provider.
  • Overdraft fees. The card provider might choose to honor the autopayment and may charge you an overdraft fee and default interest.
  • Interest charges. The autopayment will be subject to interest fees if you carry a balance or if there is no interest-free period on your card.
  • Cancelled subscriptions. If you cancel a subscription or wish to stop the autopayments, you’ll have to contact both your bank and service provider to ensure that you don’t get charged any fees.

2. One-time payments

One-time bill payments allow you to pay as you go and can be convenient for charges that vary in amounts or are less regular. You might choose to use your credit card to make a one-time payment on your tax bill or for paying off your car repairs in the same way you’d make a regular credit card payment.

What are the key factors to consider when using one-time credit card payments to pay bills?

  • Card acceptance. Some businesses may limit the type of cards that they accept or prefer cold hard cash.
  • Cash advance transactions. Some bill payments may be treated as cash advances if the business you are trying to pay isn’t setup to accept credit card payments. Your card provider will process the payment as a cash advance and charge you the cash advance interest rate and a cash advance fee.
  • Credit card surcharges. Service providers may charge a small percentage fee of your bill for paying with your credit card.
  • Interest charges. If the business accepts credit card payments, the transaction will be typically treated as purchase. This means you can enjoy an interest-free period as per all purchase transactions.
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Earning rewards for paying your bills with a credit card

When it comes to the perks of paying your bills with a credit card, we find that it’s usually more about the rewards points than anything else. The restricting and limiting of points can vary significantly between credit cards, so refer to your credit card’s terms and conditions or contact your issuer before making a payment to earn rewards.

is the purchase eligible for points?

Most of the time, the relevant clause pertains to “eligible transactions”, where they state whether or not such a transaction is eligible for earning rewards points. Note that this is not usually the case for other types of bills, such as subscriptions to the gym.

What are the credit cards that earn points for utility payments?

On the bright side, there are a few credit cards that do let you earn points on such payments. One option is:

This card earns two reward points for every dollar spent on these types of transactions.

Earning credit card rewards while making bill payments

paying-with-credit-card

Let’s look at Annie’s monthly expenses and how she can earn rewards for her regular bill payments:

  • Entertainment streaming service: $9.99 per month ($119.88 per year)
  • Gym membership: $80 per month ($960 per year)
  • Health insurance: $400 per month ($4,800 per year)
  • Telecommunications: $200 per month ($2,400 per year)
  • Electricity: $500 per quarter ($2,000 per year)

She decides to get the Wyndham Rewards® Visa® Card, which earns two points per dollar spent on gas, utilities and groceries and one point on everything else. After checking and learning that there are no fees involved, Annie sets up all her above payments as an autopayment from this account.

Over a year, Annie earns:

  • Entertainment streaming service: 119 points
  • Gym membership: 960 points
  • Health insurance: 4,800 points
  • Telecommunications: 4,400 points
  • Electricity: 4,000 points

Total: 14,279 points per year

Annie can exchange these points for gift cards, merchandise or a cash credit.

While autopayments can be a cost-effective and convenient way to schedule and manage cash flow, be sure to check for hidden and potential fees that may bite you later on. Using your credit card to pay for regular expenses can also be an efficient way to maximize rewards earnings.

Learn more about earning rewards points with your credit card

To make sure it’s the right option for you, you should do your research and weigh up the costs and benefits before deciding if this is your best option.

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Compare credit cards

Updated October 22nd, 2018
Name Product Credit Score Min. Annual Fee Intro Balance Transfer APR Reward Value per Dollar Secured or Unsecured Annual Fee APR for Purchases (Purchase Rate) Intro APR for Balance Transfer
680
95
0%
1
Unsecured
$95
14.99% to 25.99% variable
0% for the first 12 months (then 14.99% to 25.99% variable)
Earn $200 bonus cash back after you spend $1,000 on purchases in the first 3 months. Rates & Fees
680
0%
1
Unsecured
$0
14.99% to 25.99% variable
0% for the first 15 months (then 14.99% to 25.99% variable)
Earn a $150 bonus statement credit after you spend $1,000 on purchases in the first 3 months. Rates & Fees
680
550
1
Unsecured
$550
None (Charge Card)
Get 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel and 5X points on eligible hotels booked on amextravel.com. Rates & Fees
680
0%
1.5
Unsecured
$0
14.99% to 25.99% variable
0% for the first 15 months (then 14.99% to 25.99% variable)
Earn up to $250 back. Earn $150 back after you spend $1,000 or more in purchases with your new Card within the first 3 months of Card Membership. Plus, earn an additional $100 back after you spend an additional $6,500 in purchases within your first 12 months. You will receive the cash back in the form of a statement credit. Rates & Fees
720
0%
Unsecured
$0
13.99% variable
0% for the first 15 months (then to variable)
A low, variable APR on purchases, balance transfers and cash advances.
680
0%
1.5
Unsecured
$0
14.99%, 18.99% or 24.99% variable
0% for the first 15 months (then 14.99%, 18.99% or 24.99% variable)
Earn unlimited 1.5% cash rewards on purchases. See Rates and Fees.
680
0%
Unsecured
$0
12.99%, 16.99% or 20.99% variable
0% for the first 18 months (then 12.99%, 16.99% or 20.99% variable)
An 18-month 0% Intro APR period on both purchases and balance transfers, plus zero foreign transaction fees, makes this is a strong well-rounded card. See Rates and Fees
680
1
Unsecured
$0
17.74% to 26.74% variable
Earn 10,000 Bonus Miles after spending $500 in purchases on your new Card in your first 3 months of Card Membership. Rates & Fees
680
95
1
Unsecured
$0 annual fee for the first year ($95 thereafter)
17.74% to 26.74% variable
30,000 bonus miles after you use your new card to make $1,000 on purchases within the first 3 months. Rates & Fees
680
95
2
Unsecured
$0 annual fee for the first year ($95 thereafter)
17.74% to 26.74% variable
Enjoy a $0 annual fee on the first year and earn up to 2 Starpoints® for every dollar of eligible purchases. Rates & Fees
680
95
3
Unsecured
$95
17.74% to 26.74% variable
Earn 125,000 Hilton Honors™ Bonus Points after you spend $2,000 or more in purchases with your new Card within the first 3 months of Card Membership. Rates & Fees
680
3
Unsecured
$0
17.74% to 26.74% variable
Earn 75,000 Hilton Honors™ Bonus Points after you spend $1,000 in purchases on the Card within your first 3 months of Card Membership. Rates & Fees
715
495
0%
1
Unsecured
$495
16.99% variable
0% for the first 15 billing cycles (then to variable)
Mastercard Black Card members receive an annual $100 air travel credit toward flight-related purchases including airline tickets, baggage fees, upgrades and more.
195
0%
1
Unsecured
$195
16.99% variable
0% for the first 15 billing cycles (then to variable)
Enjoy unique excursions, privileged access to exclusive events and insider opportunities.
715
995
0%
2
Unsecured
$995
16.99% variable
0% for the first 15 billing cycles (then 16.99% variable)
Earn points every time you spend. Luxury Card enhances your purchasing power by providing you with one (1) point for every one dollar ($1) you spend. Every purchase gets you closer to the rewards you want.
620
39
Unsecured
$39
24.99% variable
Designed to help build credit history with no deposit required and access to benefits.
620
99
Unsecured
$75 annual fee for the first year ($99 thereafter)
23.9% variable
With this card you get a 23.9% Variable APR.
300
48
0%
Unsecured
$75 annual fee for the first year ($48 thereafter)
29.99% variable
The First Access Card is a true VISA® credit card that does not require perfect credit for approval.
300
Unsecured
Up to
19.74% to 25.74% variable
Get 1% cash back rewards on eligible purchases including gas, groceries, and services such as mobile phone, internet, cable and satellite TV, terms apply.
720
0%
1
Unsecured
$0
15.24% to 25.24% variable
0% for the first 12 statement closing dates (then 15.24% to 25.24% variable)
Earn more cash back for the things you buy most.
720
95
1
Unsecured
$0 annual fee for the first year ($95 thereafter)
17.74% to 24.74% variable
Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®
720
450
1
Unsecured
$450
17.74% to 24.74% variable
Earn 50,000 BONUS POINTS after spending $4,000 on purchases in the first 3 months from account opening* — that's $750 toward travel when you redeem through Chase Ultimate Rewards®.
690
0%
1.5
Unsecured
$0
16.74% to 25.49% variable
0% for the first 15 months (then 16.74% to 25.49% variable)
Earn unlimited 1.5% cash back on every purchase - it's automatic. No minimum to redeem for cash back.
680
95
1.5
Unsecured
$95
17.74% to 24.74% variable
Earn unlimited 2 points for every $1 spent on travel and dining purchases and 1.5 points for every $1 spent on all other purchases.
690
0%
1.5
Unsecured
$0
14.74%, 20.74% or 24.74% variable
0% for the first 15 months (then 14.74%, 20.74% or 24.74% variable)
Earn unlimited 1.5% cash back on every purchase, every day
690
0%
1
Unsecured
$0
16.74% to 25.49% variable
0% for the first 15 months (then 16.74% to 25.49% variable)
Earn 5% Cash back in bonus categories up to $1,500 every quarter. Earn 1% Cash back on all other purchases.
680
1.5
Unsecured
$0
16.99% to 24.99% variable
for the first 12 months (then 16.99% to 24.99% variable)
An intro offer rewards cardholders with a $250 value (25,000 online bonus points) after spending $1,000 within the first 90 days of account opening
680
0%
Unsecured
$0
16.74% to 25.49% variable
0% for the first 15 months (then 16.74% to 25.49% variable)
Jumpstart your financial fitness! 60 day introductory balance transfer offer, save on interest, and get your free monthly credit score.
750
95
2
Unsecured
$0 annual fee for the first year ($95 thereafter)
14.74%, 21.24% or 24.74% variable

Compare up to 4 providers

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Kyle Morgan

Kyle Morgan is a producer for finder.com who has worked for the USA Today network and Relix magazine, among other publications. He can be found writing about everything from the latest car loan stats to tips on saving money when traveling overseas. He lives in Asbury Park, where he loves exploring new places and sipping on hoppy beer. Oh, and he doesn't discriminate against buffalo wings — grilled or fried are just fine.

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US Credit Card Offers

Important Information*
Deserve® Classic Card
Deserve® Classic Card

APR

24.49
variable

Annual fee

0 For the first year
More info
Luxury Card Mastercard® Gold Card™
Luxury Card Mastercard® Gold Card™

APR

16.74
variable

Annual fee

995 For the first year
More info
First Access Visa Card®
First Access Visa Card®

APR

29.99
variable

Annual fee

75 For the first year
More info
Indigo® Platinum Mastercard® Credit Card
Indigo® Platinum Mastercard® Credit Card

APR

23.9
variable

Annual fee

75 For the first year
More info
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