- The pros of paying your bills with a credit card
- The cons of paying your bills with a credit card
- What bills you can pay with your credit card
- Best credit cards to use for paying your bills
Bills, bills, bills.
They’re a necessary evil that never seem to go away. The bigger your family, the bigger your bills – and they can put a serious strain on your spending.
No matter how much you cut back, they will still exist…so why not get rewarded for paying them?
If the bill you want to pay can be done with a credit card payment, it can make paying your bills much more streamlined as they’re all pre-authorized and coming from the same place.
Choose a good credit card and you may just be raking in the rewards for something you were going to pay anyway.
Summary of the best credit cards for paying recurring bills
|Credit Card||Earn Rate On Recurring Bills||Annual Fee, Income Requirements||Apply Now|
|Tangerine Money-Back Mastercard||2% Cash Back||* No annual fee
* $12K personal income requirements
|Scotiabank Momentum Visa Infinite||4% Cash Back||* $120 annual fee
* 60K personal, 100K household income requirements
|TD Cash Back Visa Infinite||3% Cash Back||* $120 annual fee
* 60K personal, 100K household income requirements
|TD Rewards Visa||2 points per $1||* No annual fee
* No income requirements
Getting rewarded for your bills provides a great opportunity to earn even more rewards, streamline your spending, and make sure your bills are paid on time.
If your credit card offers you points or cash back on your purchases, paying your bills with them might be an easy way to rack up points with money you were going to spend anyway.
Even better is when credit cards offer increased rewards for recurring bills, which is a feature on several cards.
Whether it be your phone, Spotify, Amazon subscription, or more – you might just have a golden opportunity to get rewarded for a purchase you make at least once a month.
Ensuring on-time payments
Since you’re pre-authorizing your credit card to make payments, your bill will be automatically charged to your credit card (on a date at the companies choosing).
This means no late payment fees, which can be a life-saver for the forgetful person – or the busy parents.
Easier expense tracking
If you’re paying most of your bills via credit card, you can have a good amount (if not all) of your bills coming from one place.
This can make things more streamlined and easier to look back on, plus make expense tracking much less time-consuming.
While paying your bills with a credit card to earn rewards might seem great, there are things to keep in mind before you start switching over your bill payments.
Some credit cards treat paying bills as cash advances, so it’s important to read the fine print and avoid hidden credit card fees.
It’s also important to look at the bill itself, and whether or not they charge a fee for any bill paid with a credit card. Often looked at as a convenience fee, these charges can really add up if you put all your bills on plastic.
You need to remember to spend what you can pay back
The golden rule of credit card spending: only spend what you know you can pay back. Having a credit card isn’t free money and should never be looked at as a second source of income.
Your bills are pre-authorized, so you have to make sure to only sign up for bills that you know your card can cover without charging you any extra.
If you’re spending money on your card irresponsibly and are unable to make at least your minimum payments, your credit score won’t treat you kindly, and neither will your bank account after paying the interest on the bill.
And even if you’re only making minimum payments, you’ll still start seeing major interest tacked onto your monthly bill as well.
What bills you can pay with your credit card
There are certain bills that can’t be paid with a credit card, but the number of bills you can pre-authorize is definitely growing.
The most popular bills that can be paid with plastic are:
- Phone/internet/cable bills – such as Bell, Koodo, Rogers, and more.
- Subscriptions – Spotify, Netflix, and more.
- Insurance – House, car, and more.
Note that just because you can pay your bills with a credit card, doesn’t mean you should.
You need to do the research and make sure that these bills won’t be treated as cash advances to 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.
Best credit cards to use for rewards on your bills
There are certain cards that will earn you extra rewards on recurring bills, just make sure your bills are recurring (happen on a weekly, monthly, or yearly basis), as that’s a common guideline for earning rewards.
A no fee, cash back option
Possibly the best rewards you can ask for when paying your bills, the
You can choose between:
- recurring bills,
- drug store,
- home improvement,
- gas, and
- public Transportation and parking.
Every other purchase will earn you 0.5% cash back.
This could be the card for you if you want to get rewarded for paying your bills – without an annual fee.
A top cash back option
With this card, you’ll get 4% cash back on recurring bills, as well as grocery purchases. And, you’ll still earn 2% cash back on gas and daily transit purchases, while also earning 1% cash back on everything else.
Earning 4% cash back on essentials like groceries and recurring bills is a top reason why it’s our #1 ranked cash back card.
A top cash back option that also includes roadside assistance
You’ll earn 3% cash back on your recurring bill payments, as well as gas and groceries, plus 1% on all other purchases.
It also comes with a great welcome bonus – earn 10% cash back for the first 3 months (up to $200 cash back earned).
On top of it all, it comes with a complimentary roadside assistance plan as well. It packs in a lot for an annual fee of $120.
A no fee travel option
If you wanted to skip the annual fee, the
On top of that, you’ll also get 3 points for every dollar spent when you book travel online through Expedia For TD.
For all other purchases, you’ll get a nice 1 point for every other dollar spent.
We want to hear from you
Did you know you could earn rewards on recurring bill payments?
Do you already pay your bills with a credit card?
Let us know in the comments below.