Paying bills and utilities can be a hassle every month. But what if you could earn rewards and cashback every time you pay your recurring expenses? That’s exactly what some credit cards allow you to do.
In this article we’ll look at the benefits of using credit cards for bill pay the best cards for earning rewards, and tips for maximizing your earnings. As a blogger who researches credit cards, I often get asked which ones are best for daily expenses. I’m excited to share my findings with you!
Why Use a Credit Card for Bill Pay?
Here are some of the main benefits of paying bills with a rewards credit card:
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Earn cash back or points: Many cards offer bonus rewards for categories like utilities, cell phone bills, internet, etc. This allows you to earn rewards on inevitable expenses.
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Making it easier to pay your bills by setting up autopay and billing your credit card can save you time. No more writing checks or scheduling payments.
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Build credit: Using a credit card wisely and paying it off on time will help you raise your credit score. Good credit saves money on interest rates for loans and credit cards.
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Purchase protection: Credit cards provide protections if items are damaged, stolen or lost. This can be useful for cell phones purchased on your card.
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Extended warranties: Some cards extend manufacturer warranties on purchases by a year or more. This provides peace of mind when buying appliances and electronics.
However, it’s important to use credit cards responsibly. Pay your balance in full each month to avoid interest charges. Set a budget and track your spending so you don’t overspend.
The Best Credit Cards for Bill Pay and Utilities
Based on my research, here are some of the top credit cards for earning rewards on bill pay:
Citi Double Cash Card
- Reward: Unlimited 2% cash back on all purchases (1% when you buy, 1% when you pay)
- Perks: 18 month 0% intro APR for balance transfers
- Annual Fee: $0
With its unlimited 2% back on every purchase, this Citi card is one of the strongest choices for a go-to card to pay your bills. There’s no need to keep track of rotating categories. Just use it for all your expenses and earn a flat 2% back.
Chase Freedom Flex
- Reward: 5% cashback on up to $1,500 in combined purchases each quarter in bonus categories (changes each quarter)
- Perks: $200 sign-up bonus after spending $500 in the first 3 months
- Annual Fee: $0
The Chase Freedom Flex offers 5% cashback on up to $1,500 in purchases each quarter in categories like gas stations, internet/cable/phone providers, select streaming services, etc. These categories often align with common bills, making this a great option.
Wells Fargo Autograph Card
- Reward: 3% cash rewards on a category of your choice like gas, dining, travel, transit, phone plans, etc (up to $2,500 in purchases per quarter)
- Perks: Cell phone protection
- Annual Fee: $0
This Wells Fargo card allows you to earn an impressive 3% on your choice of common bill payment category. Cell phone protection is also included, covering your device against damage and theft.
U.S. Bank Cash+ Visa Signature
- Reward: 5% cashback on your first $2,000 spent each quarter on two categories you choose (like utilities, cell phone providers, TV/internet/streaming services)
- Perks: $200 sign-up bonus after $1,000 spend in 90 days
- Annual Fee: $0
With the U.S. Bank Cash+ card, you get to pick 2 categories each quarter to earn 5% cash back. This flexibility makes it easy to maximize rewards on your largest bills.
Bilt Mastercard
- Reward: 1x point per $1 spent on rent payments (no fee)
- Perks: Earn points when transferring points to travel partners
- Annual Fee: $0
The Bilt Mastercard offers a unique opportunity to earn points when paying rent with no processing fees. If rent is your largest expense, this card can help you maximizerewards.
Tips for Maximizing Credit Cards for Bill Pay
To get the most value from using credit cards for bill payment and utilities, keep these tips in mind:
- Pay your card balance in full each month to avoid interest charges
- Calculate if the rewards outweigh any fees charged by the vendor
- Track bonus categories – earn the most rewards by using the optimal card each quarter
- Set up autopay for recurring bills to ensure on-time payments
- Pool points from multiple cards to redeem for maximum value
The Bottom Line
Paying bills and utilities with rewards credit cards can help offset the cost of monthly expenses. Just be sure to practice responsible habits like paying on time and not overspending. A little extra diligence goes a long way towards earning cash back and points that give your budget a boost.
Citi Custom Cash® Card
Rewards:
- 5% cash back on up to $500 spent in your highest spend category per billing cycle (from a list of eligible options).
- 1% back on all other purchases.
Sign-up bonus: Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Annual fee: $0.
APR: 0% intro APR on Purchases and Balance Transfers for 15 months, and then the ongoing APR of 19.24%-29.24% Variable APR.
With the Citi Custom Cash® Card, you don’t have to keep track of rotating bonus categories, or select or activate anything each month or quarter. Simply use your card and you’ll automatically earn a high cash-back rate where you spend the most that month from among these categories, which include several recurring costs: restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs, live entertainment.
The $500 cap on your highest spending category can limit your earning potential in categories where you might exceed the limit (hello, groceries!). Plus, unlike other cash-back cards like the Blue Cash Preferred® Card from American Express, there’s only one category per month that can earn more than 1% back.
Bank of America® Customized Cash Rewards credit card
Rewards:
- 3% back in a category of your choice (from a list of six) and 2% back on grocery stores and wholesale clubs, for the first $2,500 of combined bonus category/grocery store/wholesale club spending per quarter (1% back after that).
- 1% back on all other purchases.
Sign-up bonus: $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
Annual fee: $0.
APR: 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 19.24% – 29.24% will apply.
The Bank of America® Customized Cash Rewards credit card earns 3% back in your choice of one of these categories: gas/EV charging; online shopping (including cable, streaming, internet and phone plans); dining; travel; drugstores; or home improvement/furnishings. You can change your 3% category once a month, which is helpful if you’re anticipating spending more on certain purchases in the near future. Also take note of the cards 2% categories: Grocery stores and wholesale clubs, which can be quite useful.
Youll need to be OK with tracking bonus categories and how much youre spending in them. The $2,500 quarterly spending cap applies to the 3% and 2% bonus categories combined; big spenders may hit that cap pretty early.
CJU- LEARN HOW TO USE CREDIT CARDS TO PAY YOUR BILLS
FAQ
Do credit cards offer bill pay?
What bills cannot be paid with a credit card?
Does Capital One have bill pay?
How do I pay a credit card bill?
How to Pay Credit Card Bills in 5 Steps: Link a checking account to your credit card, using the account number and routing number for the checking account. Make the checking account the primary source for credit card payments. Schedule recurring payments to be made monthly by the due date, or choose to make a one-time payment on a certain date.
Can you pay bills with a credit card?
If there is no fee to pay a bill with a credit card, then doing so has benefits.If there is a fee, using credit should be a last resort.
Is it worth paying bills with a credit card?
It’s worth it to pay bills and utilities with a credit card if it earns at least 3 percent cash back for that spending. For example, if your gas bill company applies a 2 percent processing fee for credit card charges and your card earns 5 percent back on utilities, you’ll earn a net 3 percent cash back.
How do I pay my credit card bill on time?
Set up automatic payments. If you want to make sure you pay your credit card bill on time every month, automatic payments are one of the best ways to get the job done. When you set up autopay, money is automatically withdrawn from your bank account to make your credit card payment.