If you’re someone who diligently makes their credit card payment every month, it just makes sense to pay your bills by card whenever possible. Not only does it automate payments so you don’t have to worry about missing due dates, but you could earn valuable rewards with the right rewards credit card.
This assumes you’re using a credit card that has a great earn rate, reasonable annual fee, or both. If you’re unsure which credit card to use, we’ll walk you through the best cards to use on your recurring payments and discuss the pros and cons, so you can decide if this is the best budget strategy for you.
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Should you pay bills with a credit card?
If you’re someone who diligently pays off their credit card every month, you should seriously consider paying your bills by credit card–- especially if you have a card with great rewards.
We want to emphasize: this strategy only works if you have financial discipline.
Not only do you have to pay off your card regularly, but you also have to keep track of all the bills you’ve charged to the card. If you tend to carry a balance on your credit card every month, you should probably stick to paying your bills by bank transfer or using your debit card.
Pros and cons of paying bills with credit cards
Getting rewarded for your bill payments comes with some great benefits:
- Earn rewards for paying your bills. If your card gives you rewards, be it cash back or travel points, that’s reason enough to pay bills with a credit card. Some credit cards give you up to 4% back on your payments and you might even get boosted rates for recurring bills, which can add up quickly.
- Ensure your payments are made on-time. If you pre-authorize these monthly bill payments, you’ll see them automatically charged to your card before the due date and avoid late fees. You can typically set up automatic payments for recurring bills of the same amount, like a Netflix subscription, or a variable amount, like your home electricity bill.
- Track your expenses more easily. If you’re paying most of your bills via credit card, you’ll be able to see the amounts at a glance. This can streamline your finances so it’s easier and faster to study your money-spending habits.
It might feel great to pay bills with a credit card and earn rewards, but there are things to keep in mind before you switch your bill payments:
- You might be charged fees. Some credit cards treat paying bills as cash advances so it’s important to read the fine print and avoid hidden credit card fees. Don’t forget to check the bill itself to see if the company charges a fee for paying with a credit card – it might be listed as a convenience fee of around 3%.
- You’ll have to update the card in each billing account. If there’s a disruption to your credit card, like it’s expiring and the issuer sends you a new one, you’ll have to update the payment information for every recurring bill you charge to it.
- You might balloon your credit card debt and pay more in interest. You should only charge as much as you know you can pay off. Otherwise, you’ll be charged interest, which could negate any credit card rewards you earn.
- Your credit score could take a hit. If you miss payments or your debt-to-income ratio climbs, your credit score could drop;
What bills can you charge to a credit card?
There are certain bills that can’t be paid with a credit card in Canada, but the number of bills you can pre-authorize is definitely growing.
- Streaming services. It’s very easy to sign up for streaming services and forget that you have them! Make a point of seeing which streaming services you’ve got every month or two, so you’re not paying for services you no longer want.
- Subscriptions and membership fees. Digital or not, you can typically charge subscriptions and memberships to your card – things like your gym membership, food delivery boxes, gaming subscriptions can all earn you rewards.
- Insurance. Most insurance companies allow you to preauthorize your payments on a credit card. Be sure to update your card info when needed so that you don’t miss one of these important payments and see your coverage lapse.
- Utilities. Even though your bills for water, electricity, and gas might vary from month to month, you can typically preauthorize the bill payments through your provider’s website.
Note that just because you can pay your bills with a credit card doesn’t mean you should.
You need to do the research on your specific card and make sure that these bills won’t be treated as cash advances by your issuer, that the company won't add charges for making payments with a credit card, and that you'll actually earn rewards on them.
Boost recurring bill rewards with the right credit card
There are certain cards that will earn you extra rewards on recurring bills – just make sure your bills are recurring (meaning they happen on a weekly, monthly, or yearly basis), as that’s a common guideline for earning rewards.
Here are some of the best credit cards in Canada for paying your bills.
| Category | Credit card | Rewards | Annual fee |
|---|---|---|---|
| Best premium cash back card | BMO CashBack World Elite Mastercard | * 5% cash back on groceries, up to $500 in monthly spend * 4% cash back on transit, up to $300 in monthly spend * 3% cash back on gas, up to $300 in monthly spend * 2% cash back on recurring bills, up to $500 in monthly spend * 1% cash back on all other purchases | $120 |
| Best no fee cash back card | Tangerine World Mastercard | * 2% cash back on purchases in up to 3 Money-Back Categories * 0.5% cash back on all other purchases | 0 |
| Best cash back credit card | Scotia Momentum Visa Infinite Card | * 4% cash back on groceries and recurring bill payments * 2% cash back on gas and transit * 1% cash back on all other purchases | $120 |
| Best cash back card with a high earn rate on all purchases | SimplyCash Preferred Card from American Express | * 4% cash back on gas and groceries * 2% cash back on all other purchases | $119.88 |
| Best card to pay for streaming services | Scotiabank Gold American Express Card | * 6 Scene+ points per $1 spent at Sobeys, Safeway, FreshCo and more * 5 Scene+ points per $1 spent on groceries, dining, and entertainment * 3 Scene+ points per $1 spent on gas, select streaming services, and transit * 1 Scene+ point per $1 spent on foreign currency purchases * 1 Scene+ point per $1 spent on all other purchases | $120 |
Best premium cash back credit card
$150 GeniusCash + Exclusive: Up to $480 bonus cash back + First year fee waived.*
GC: $150
The
Your other purchases earn anywhere from 1% to 5% and you’ll get a welcome bonus of up to $480 cash back in the first 12 months. While this card isn’t incredible for your bills specifically, it’s a well-rounded card with lots of perks.
Pros:
- Welcome bonus of up to $480 cash back in the first 12 months
- World Elite Mastercard perks
- 13 types of insurance included
- Roadside assistance included
- $120 annual fee waived for the first year
- Up to 7 cents per litre off at Shell
Cons:
- Low monthly spend caps on bonus categories
- Income requirements of $80,000 personal or $150,000 household
Best no fee cash back credit card
GC: $125
The
Pros:
- Earn an extra 10% cash back for the first 2 months, up to $1,000 spent
- 1.95% interest on balance transfers for 6 months
- Mobile device insurance
- No annual fee
Cons:
- Only earns 0.5% cash back on non-category purchases
- Income requirements of $60,000 personal or $100,000 household
Best cash back credit card
GC: $20
The
Pros:
- 10% cash back for the first 3 months, up to $2,000 in spend
- Up to 4% cash back on purchases
- 11 types of insurance included
- $120 annual fee waived for the first year
Cons:
- Income requirements of $60,000 personal or $100,000 household
- Rewards only paid out once per year as a statement credit
Best cash back card with a high earn rate on all purchases
If you’re looking for an Amex option, the
Pros:
- 10% cash back for the first 3 months, up to $2,000 in spend. Plus, earn $50 when you make a purchase on month 13
- 10 types of insurance included
- Amex benefits like Offers and Front Of The Line
- No income requirements
Cons:
- Lower acceptance as an American Express
- Cash back only paid out once per year
Best card to pay for streaming services
×1 Award winner GC: $60
1x Award winner If you subscribe to a variety of streaming services, the
Pros:
- Welcome bonus of up to 50,000 Scene+ points
- Up to 6 points per $1 spent on select purchases
- 4 ways to redeem points for high value
- 12 types of insurance
- No foreign exchange fees
Cons:
- Lower acceptance as an American Express
- Annual fee of $120
Earn more cash back with the GeniusCash app
If you want to make the most of your money, the GeniusCash app has your back. Connect your cards and you’ll get rewards-maximizing recommendations to help you use the right credit card for things like groceries, gas, travel, and (of course) recurring bills. GeniusCash will analyze your spending and tell you which one is best.
You’ll also get access to big GeniusCash Offers on top financial products and services, plus limited-time welcome bonuses and exclusive deals you won’t find anywhere else.
FAQ
How do I pay my regular bills with a credit card?
If you want to pay bills with a credit card, log into the account you’d like to pay and head to the billing screen. Instead of making a payment with your banking information, enter your credit card details and submit your payment. You can also sign up for automatic payments for most recurring charges.
Is it smart to pay bills with a credit card?
If you always pay off your credit card balance, paying your bills by card is an easy way to earn rewards on money you’re already spending. Plus, paying by card can make it easier to track your expenses since all payments are run through the same credit card account.
Can I pay rent with a credit card?
Some landlords may allow you to pay your rent by card but check that they don’t charge a convenience or processing fee. Sometimes it’s a flat amount, but it could be a percentage of your rent, in which case, the fee would probably offset any potential rewards earnings.
Can I pay my mortgage with a credit card?
In general, traditional mortgage lenders don’t accept credit card payments. While there are possible workarounds (like paying through a third-party service), you’ll typically find that the fees are too high to make sense.
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