Credello: Which Monthly Bills Should You Pay With Your Credit Card?

If you have a credit card, it's tempting to use it to pay for everything to rack up rewards or put off the payment. However, there are certain things that it's better to pay for using other means.

In some cases, you can use your credit card to pay your monthly bills. Here, we'll talk about which ones and whether or not it's a good idea to use a credit card payment as the main form of payment.

1. Bills that Incur Late Fees

If you have any bills that incur hefty late fees if you don't pay them on time, you should probably pay for those with a credit card. For instance, maybe you're looking for personal loans for bad credit. You find one, and the terms seem acceptable to you. However, you know that any time you don't pay the minimum amount within a designated period, a significant penalty will come about as a result.

That's one example of a time when it may make sense to pay with a credit card. Other examples include your rent or any item you bought on an installment plan. You can usually set up automatic payments with your credit card for these obligations. That should prevent you from having to pay late fees should you forget about one of them.

2. Auto Insurance and Cell Phone Bills

You don't want to forget to pay your cell phone bill. If you do, your service provider may shut it off and you could miss an important call or message. You should be able to schedule automatic payments with your credit card, though, to ensure you never miss a bill.

Your auto insurance is another example of something for which you'll want to consider scheduling automatic credit card payments. If you forget to pay for it, and a cop pulls you over, you may think you're covered, but your insurance has lapsed. That can mean a court summons and a fine, and you certainly want to avoid that if you can.

3. Internet and Utility Bills

You might rely on your internet for all kinds of things. Maybe you're self-employed and need online connectivity to do your work. On the entertainment front, maybe you can't watch your streaming services without internet access. You can look into setting up automatic credit card payments that should ensure your service doesn't lapse.

You should certainly look into automatic credit card payments for your utilities as well. You don't want to forget about paying the electric bill, for instance. The lights might go off suddenly if your account is in arrears. You can also research whether you can set up automatic credit card payments for your water and gas.

Consider Paying These Bills with a Credit Card

Any time you have a monthly obligation where you incur a significant penalty if you don't pay on time, or will experience a lapse in service, it makes sense to set up a credit card that will make that payment for you automatically. 

Paying for the things we mentioned above with your credit card is a smart idea as long as you then pay off your credit card bill each month. If you establish this routine, you're not likely to forget any crucial bills. You'll also rack up credit card points at the same time. 

Source: Credello

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Categories: Personal and Family Finances

Tags: Debt, Financial Services, Personal Finance


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