What bills can be paid with a credit card?

hands of young woman using mobile smart phone pay bills online.
giggsy25 / Shutterstock

One of the easiest ways to build up credit card rewards points is to pay as many bills as possible with your credit card. Here are some bills to start with.

Cell phone and internet bills

Your cell phone and internet bills can easily be paid with your credit card. If you set up autopay, you’ll never have to worry about missing another payment. Some credit cards, for example, will even insure your phone if you pay your bill with your card.

Utilities

Some companies allow you to pay your electric, gas, and water bills with a credit card but it depends on the company. You may have to pay a small convenience fee for using a card, but depending on the number of points you’re earning, it may be worth it.

Rent

Not all landlords accept credit card payments for rent, but if the home is managed by a larger property management company, you may be in luck.

Keep in mind that your landlord could charge a processing fee for accepting credit card payments, and depending on your agreement, this fee may be passed down to you. If that’s the case, make sure to do the math to see if it’s still worth it to pay your rent with a card.

If your landlord won’t accept cards, there are also online services, like Plastiq, that will send your payee a physical check after charging your credit card (for a fee).

Home and auto insurance

You may also be able to use your card to pay for home and auto insurance. Many companies have recently stopped accepting credit cards due to avoid processing fees, but it’s worth checking out.

Some companies charge a credit card processing fee, but waive it if you pay your premium in full. If you can afford it, this would be a great way to meet your minimum spend for a sign-up bonus.

Recurring subscriptions

Recurring subscriptions like Netflix, Hulu, Amazon Prime, Spotify, etc. are all easy to autopay with your credit card. These small monthly expenses may not seem like much, but when you add them together, they can really start to add up.

What you can’t pay for with a credit card

Mortgage document
LifetimeStock / Shutterstock

Sadly, not everything can be paid with a credit card — at least not without creative workarounds. Here’s what you probably won’t be able to put on plastic.

Mortgage

Mortgage payments make up a huge chunk of most people’s monthly spending — a perfect opportunity to boost your rewards balance.

Unfortunately, most mortgage servicers do not accept credit card payments. And if they do, you’re going to pay for it. You could always pay with your card using Plastiq, but the 2.5% fee will likely cancel out any rewards gained (unless you’re gunning for a big sign-up bonus).

Auto loans

Similar to mortgage lenders, most auto lenders won’t accept cards for lease or finance payments. The workaround here would be to transfer your loan (or part of it) to a balance transfer card with a 0% introductory APR.

Just make sure to pay off the balance before the introductory rate expires or your car loan will get very expensive very quickly.

For many people, this strategy might not be ideal because it will increase your credit utilization and negatively impact your credit score.

Pros and cons of paying bills with credit cards

Monthly spending plan
alexskopje / Shutterstock

Now that you know how to pay your bills with credit cards, is it actually worth it?

Pro Con
You earn rewards and cashback Not all bills can be paid with a credit card
It’s more convenient than sending cash and checks Carrying a higher balance can ding your credit score
It’s easier to track expenses You may need to pay additional processing fees

In the end, you need to do the math. In many cases, it costs extra to pay with a credit card. But do the rewards you’ll gain outweigh the additional expenses?

If so (and if you plan to pay your balance in full each month), then paying bills by credit card can be a great option.

If you are already carrying balances on your cards and you have other debt, you can get a debt consolidation loan to get that paid off at a lower interest rate before you start adding to your balance by paying bills with your card.

About the Author

Mitchell Glass

Mitchell Glass

Freelance Contributor

Mitchell is a freelance contributor to MoneyWise.com.

You May Also Like

Capital One Shopping vs. Honey — Which One Saves You More?

These similar-looking services provided totally different results in our test run.

Do Big Stores Save You the Most? We Price-Check Our Shopping List

With one 30-second trick, we found $460 in savings beyond Walmart and Amazon.

Take a Break From Your Debt This Month

Let debt consolidation give you a break.