Can You Pay Your Phone Bill With a Credit Card?

Paying bills is a necessary evil that comes with being an adult. It seems like the stack of bills just keeps getting higher, with cell phone bills, internet bills, streaming services, and more As these expenses add up, many people look for ways to optimize their bill payments. One common question is – can you pay your phone bill with a credit card?

The short answer is yes, you typically can pay your cell phone bill with a credit card. However, there are some caveats to be aware of. In this article, I’ll walk through the pros and cons of paying your phone bill with a credit card so you can decide if it’s the right option for you.

Frequency of Entities

• Credit card: 23 times
• Cell phone bill: 17 times
• Mobile provider: 7 times
• Debit card: 6 times
• Rewards: 6 times
• Autopay discount: 5 times
• Insurance: 5 times

When Paying Your Phone Bill with a Credit Card Makes Sense

There are some situations where opting to pay your cell phone bill with a credit card can be advantageous

You Can Earn Rewards

Many rewards credit cards allow you to earn points or cash back on every dollar you spend. By charging recurring expenses like your cell phone bill to a rewards card, you can earn 1-5% back in rewards on money you have to spend anyway. Over time this can add up to hundreds of dollars in rewards.

Make sure that your cell phone company doesn’t charge a fee for credit card payments, because that would take away from the rewards you earn.

You Get Cell Phone Insurance

When you pay your cell phone bill with some credit cards, you get insurance for your phone. You can save $10 to $15 a month that you would have spent on protection through your cell phone provider.

The coverage is typically subject to a deductible and caps at $600-800 per claim, but it’s usually better than no protection at all.

You Get a Discount for Autopay

Many wireless carriers offer a discount, usually $5-10 per month, just for enrolling in autopay. This makes sure your bill gets paid on time every month.

You can take advantage of autopay discounts while still using a credit card for the payment in most cases. Just make sure your mobile provider doesn’t exclude credit card payments from qualifying for the discount.

When Paying Another Way is Better

While credit cards often make sense for cell phone bills, there are a few situations where you may want to reach for a different form of payment:

No Autopay Discount for Credit Cards

Some major carriers like T-Mobile don’t allow credit card payments to qualify for their autopay discount. For individuals lines, the lost discount may be smaller than the rewards you’d earn on a credit card.

But for family plans with multiple lines, that per-line discount can add up fast. In that case, it likely makes more sense to pay with a bank account and get the discount.

Paying with a Debit Card

If you want the autopay discount but don’t want to miss out on cell phone insurance, consider using a debit card that offers protection. Wells Fargo debit cards, for example, provide up to $600 of coverage with a $25 deductible when you pay your cell bill with that card.

While you won’t earn rewards, you’d get the discount and protection. Evaluate your priorities to see if this option beats out credit card rewards.

Avoiding Credit Card Debt

Some people don’t trust themselves not to overspend with credit cards. If that’s you, it may be safest to keep your phone bill on a debit card or linked directly to your checking account. That way, you won’t risk racking up credit card debt.

Yes, you’ll miss out on some rewards. But avoiding debt is likely more valuable.

More Things to Consider

Here are a few other things to think about as you decide whether to pay your cell phone bill with a credit card:

• Interest charges: Don’t pay your bill with a credit card if you’ll carry a balance and accrue interest charges. That will likely outweigh any rewards or discounts.

• Payment deadlines: Make sure your payment posts by your bill’s due date if paying by credit card. Processing can take 1-2 business days.

• Convenience: Paying directly from a bank account means one less bill to keep track of on your credit card. But credit cards offer quick mobile payments.

• Other bills: Consider paying other recurring bills like utilities and cable with a credit card as well to maximize rewards.

• Bonus rewards: Some cards offer bonus rewards for cell phone bills, like the U.S. Bank Altitude Connect Visa Signature Card.

The Bottom Line

At the end of the day, whether or not you should pay your cell phone bill with a credit card depends on your specific situation. Take into account factors like rewards earnings, discounts, insurance benefits, interest charges, and your own financial preferences.

For many people, using a credit card makes the most sense to maximize rewards and discounts. But don’t just blindly pay your phone bill with plastic without first understanding your mobile provider’s policies and your own spending habits. A few minutes of research upfront can ensure you choose the optimal payment method for your needs.