Can I Bill Pay With Credit Card? Everything You Need to Know

Paying bills is a necessary part of adult life But for many people, writing checks, buying money orders, and logging into multiple accounts to make payments can be a hassle Using a credit card to pay bills can streamline the process and provide other benefits too. Here’s what you need to know about paying bills with credit cards.

Which Bills Can You Pay With a Credit Card?

You have several options for paying recurring expenses like utilities, subscriptions, insurance premiums, medical bills, and more. Which bills you can pay with a credit card depends on the billing company.

• Many utility companies such as electric, gas, water, and garbage collection accept credit cards. However, some may charge a convenience fee.

• Most cable, internet, and cell phone providers accept credit cards without fees.

• Many insurance companies accept credit cards for premium payments including auto, home, renters, and health insurance.

• Most subscription services like Netflix, Amazon Prime, gym memberships, newspapers, and magazines accept cards.

• Many medical providers accept credit cards for copays, appointments, and procedures. Some may charge a fee.

• Charitable donations can be made via credit card in many cases.

• Some landlords and property management companies accept rent payments by credit card, but a fee may apply.

Bills You Typically Can’t Pay With a Credit Card

Some common recurring bills cannot be paid directly with a credit card:

• Mortgage payments

• Auto loans

• Student loans

• Personal loans

• Most government payments like income taxes and property taxes

Credit card network rules prohibit paying loans owed to the same institution with that card. And government entities and large lenders rarely accept credit cards due to the high fees charged by card networks.

Should You Use a Credit Card to Pay Bills?

Paying bills with a credit card can make sense in many situations, but consider a few key factors:

Credit card rewards – If your card earns cash back, points, or miles, you can rack up rewards by charging bills you have to pay anyway. Just don’t overspend to earn more rewards.

Convenience – Making one payment online rather than multiple payments through various platforms saves time. Setting up autopay can further simplify the process.

Float – Paying with a credit card gives a grace period between the purchase and when the payment is due. This time lag creates “float,” providing short-term access to the cash.

Consumer protections – Credit cards provide extended warranties, return protections, fraud liability limits, and other features you don’t get with cash or debit.

Credit building – Responsible credit card use demonstrates you can manage credit and helps build your credit scores.

Budgeting – Having all expenditures on one statement makes it easy to track monthly spending.

Just be sure you pay off the balances in full each month to avoid interest charges. And watch out for convenience fees that might wipe out rewards earned from card use.

Credit Card Bill Pay Options

If you can’t directly pay a bill with a credit card, you still have options to use your available credit for bill payments:

Cash advances – You can obtain a cash advance from an ATM or bank with your credit card’s PIN. It starts accruing interest immediately, so should be a last resort.

Balance transfers – Transferring an existing balance from another card provides accessible credit you can use to pay bills. It may incur a fee but saves on interest.

Buying gift cards – Some merchants sell branded gift cards you can purchase with a credit card and use those funds to make bill payments.

Third-party payment services – Companies like Plastiq and PayPal allow you to pay any merchant or person with credit and charge a processing fee.

Peer-to-peer payments – Services like Venmo and PayPal enable personal credit card payments to others that can reimburse expenses.

These options come with fees and/or interest charges, so compare costs before using credit for bills when better payment methods are available.

Tips for Paying Bills With Credit Cards

Follow these tips to successfully integrate credit card payments into your bill pay strategy:

• Review statements for convenience fees – One overlooked charge can outweigh rewards earned.

• Set payment reminders – Calendar alerts prevent late fees if you use autopay.

• Pick the optimal card – Choose a rewards card suited for your typical monthly spending.

• Monitor balances – Keep balances low to avoid credit damage.

• Pay in full each month – Interest charges add up and indicate risky credit use.

• Use bank bill pay too – Combine methods to maximize rewards across bills.

• Compare costs – Weigh fees versus interest before using credit creatively.

• Have a repayment plan – Don’t take on credit card balances you can’t eliminate quickly.

The Bottom Line

Paying bills directly with general purpose credit cards is convenient, earns rewards, streamlines recordkeeping, and leverages consumer protections. But it requires responsible use to avoid interest charges. For bills you can’t pay with a credit card, explore alternate methods like cash advances or third-party bill pay services if needed, but compare costs first. Integrating credit card payments into your overall bill payment strategy takes some planning but can simplify your finances.