Should You Pay Your Bills With a Credit Card?

When it comes to paying your bills everyone has their own way. Some may go directly to an office and pay with cash. Others might go online and pay their bill using their banking information and those not yet with the program might write a check and send it through snail mail.

As long as your bills are paid then what does it matter, right? Well what about paying with your credit card instead? There are surprisingly some perks to paying your bills with a credit card.

If you use a rewards card you could earn some major bonuses by using a rewards card, especially ones that provide cash back. If you would like to use one of your reward cards you’ll want to make sure what you get in return is worth it. Take into consideration interest amounted, how you can use your points, and that you need to pay the charge off in full immediately. Paying your bills with a card could lead to overspending so you have to be extra cautious if you’re using them for your bills.

You could also use this method to help rebuild your credit as long as you’re wise and pay your balances off each month. Showing that you can charge something and pay it off in full can help your credit score.

You also have back-up when it comes to using your credit cards for bills. If you need to dispute a payment or charge, your credit card could help you with the good fight. You will also have easy access to a statement showing you made the payment on time if need be.

However, should you choose to pay your bills with plastic there are certain steps you need to take. For one, be diligent about reading any communication that comes from your credit card company. Read your statements to protect yourself from identity theft; learn about rewards changes before they go into effect; and read your statements to be sure you’re not spending too much. Ideally you want your credit card use to be less than 30 percent, meaning how much you owe is only about 30 percent of your limit or less.

Choosing to pay your bills with a credit card is a personal choice that could bring you rewards or penalties. Credit card use is always something to be careful with so learn to use your cards wisely whether it be for bills or everyday purchases.