Can You Pay Bills With a Credit Card?
5 Min Read | Published: August 5, 2024
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Some bills can be paid by credit card, including utilities, cell phone service, and subscriptions. But there are a few exceptions. There may also be fees that apply.
At-A-Glance
- You can use a credit card to pay some monthly bills, like your utilities, cable and internet, and subscription services.
- By paying bills with a credit card, you can improve your budgeting strategy and make the most out of your credit card rewards.
- If you know you’ll be able to make full payments each month, using a credit card for your bills could be a smart financial strategy.
If you have a credit card, you might wonder whether you can use it to pay your bills. Fortunately, the answer is, “yes.” This can help to streamline and automate the bill payment process, which could help you to save on late fees. Additionally, if you have a rewards credit card, you may be able to earn rewards on your bill payments as well. However, some companies may charge a fee if you pay with a credit card, and you may not be able to pay all of your bills with a credit card. In this article, we’ll look at which bills you can pay with a credit card, along with some potential pros and cons of doing so.
Which Bills Can You Pay With a Credit Card?
There are a number of bills that can be paid with a credit card. In most cases, you can pay the following bills with a credit card:1
- Cable and internet service
- Utilities
- Cell phone service
- Car, home, and health insurance
- Subscription services, like gym memberships or streaming services
- Internal Revenue Service (IRS) and state taxes
To verify which companies accept credit card payments, visit their website or contact them directly and ask which payment options they accept. If a company does allow credit card payments, make sure you understand what fees may apply.
You’ll also want to make sure you understand the terms of the credit card that you’re using, so you know what to expect when it comes to due dates, interest rates, and more.
Pros of Paying Bills With a Credit Card
Paying bills with a credit card can help to simplify your finances. The benefits of using a credit card to pay your bills include:
- Convenience
A credit card is a fast and convenient way to cover your monthly expenses. If you’d like, you may be able to use one credit card to pay multiple bills.2 Just take care that you don’t use too much of your card’s available credit, as this could have a negative impact on your credit score. - Automation
If you sign up for autopay with a credit card, you won’t have to worry about late fees and the other consequences that come with late payments. Your bill payments will happen automatically.3 Of course, you’ll still want to check your accounts regularly to ensure payment is going out and you are meeting your financial obligations. - Simplified Budgeting
By using a credit card for your bills, you’ll find it easier to take control of your finances. You’ll be able to monitor your spending with less effort because your bills and other purchases will be clearly listed on the same statement. - Potential Rewards
Depending on the credit card you choose, you may be able to earn rewards on your bill payments. These may be cash back, points, or airline miles. This could help you to maximize your benefits, but you’ll want to check that the company in question won’t be charging you a convenience fee which could offset any potential rewards.
Cons of Paying Bills With a Credit Card
While paying bills with a credit card can offer a great deal of convenience, there are a few disadvantages you’ll want to keep in mind as well.
Here’s a look at the downsides of paying your bills with a credit card:
- Potential Fees
Some companies charge a convenience fee to process credit card payments. While the fee may seem small for each transaction, these fees can add up if you have to pay them multiple times each month.4 - Potential Interest
In a perfect world, you’d repay your credit card balance in full each month. If you don’t, however, you may face hefty interest charges that can increase the overall cost of your monthly bills.5 - May Be Limitations
Not all companies and lenders allow credit card payments. For example, you might not be able to pay your mortgage, rent, car loan, or student loans with a credit card.6
Should You Pay Your Bills with a Credit Card?
If you’re maintaining good control over your finances and feel confident that you’ll be able to make your payments in full each month, it may be a good idea to pay some of your bills with a credit card. This is particularly true if you want to secure a welcome bonus, take full advantage of your card’s rewards, or keep your card active.7
Of course, you should avoid this strategy if you’re not confident that you’ll be able to pay your credit card. Also, if you’re already in debt or find it easy to overspend, you should find other ways to cover your bills.8
How to Pay Bills with a Credit Card
Each company or lender has their own process for credit card payments. You may be able to enter your credit card information into an online portal or account and confirm that you’d like to use your card for payments.
There are a few additional best practices that you’ll want to keep in mind:
- Consider Using One Credit Card
By using one credit card for your bill payments, you’ll make it easier to track and monitor your spending. - Have a Plan to Pay Your Credit Card in Full
Ideally, you’ll want to pay off your credit card’s balance in full by the due date each month. By carrying a balance, you’ll typically end up having to pay interest. - Monitor Your Credit Utilization Ratio
When paying bills, consider your card’s credit limit, and keep an eye on your credit utilization ratio. This is the ratio of how much credit you’re using as it compares to your available credit. If you’re carrying a large balance each month, it could impact your credit score.
Frequently Asked Questions
Paying your monthly bills with a credit card could have a positive or negative impact on your credit, but this will depend on whether the company reports late payments to the credit bureaus.9 While timely repayments may help to improve your score, late or missed payments could negatively impact it.
You may want to pay your bills with a checking account instead of a credit card if the company will charge you a fee or you know you’ll struggle to repay your balance. A checking account payment may also make more sense if you’ll receive a discount for paying this way.10
You should at least make the minimum payment on your credit card each month. However, to help save on interest charges and earn more rewards, it’s a good idea to repay it in full at the end of each month. You may want to make multiple repayments throughout the month to make full repayments more manageable.11
The Takeaway
You can typically pay some bills with a credit card. This typically includes utilities, cable and internet, and subscription services. This strategy is convenient and can allow you to simplify budgeting and maximize rewards, however, there may be limitations and fees, as well as charges in some cases.
1 3,4,5,6,7,10,11 “Should I Pay Bills With a Credit Card or Checking Account?,” Experian
2,8,9 “Should You Pay Bills with a Credit Card?,” Bankrate
Anna Baluch is a personal finance writer from Cleveland, OH. She enjoys helping people from all walks of life make smart financial decisions. Her work can be seen on Credit Karma, Forbes, LendingTree, Insurify, and many other publications. Connect with Anna on LinkedIn.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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