Should I Pay my Utility Bills with a Credit Card?
Q: Is it a good idea to pay my utility bills with a credit card?
A: Paying utility bills via credit card might work for you, as it can have several significant advantages.
Here are 5 reasons for using your credit card to pay your utility bills.
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Automate your payments
When you pay utility bills with a credit card, you can set up your bills to be paid automatically. This leaves just one payment to make each month. Take one task of money management off your list and never miss a payment!
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Earn rewards
You need to pay your bills; why not earn rewards for it? A high-rewards card, or one that pays in points or miles, can help you earn loads of bonus points or miles in a year’s worth of bills.
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Track your spending
Budgeting is easier when your payments are digital. You’ll see all of your payments on your card statement, and you can easily track your expenses for utility bills that fluctuate with use. Having your spending tracked through your credit card account makes budgeting simple.
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Protect your purchases
Many credit cards offer outstanding consumer protection on purchases made by cardholders. This can include zero liability in cases of fraud or a mistaken charge. On the flip side, if you pay your bills via paper check or cash, you have zero protection if the money is lost in transit.
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Keep your cards active
If you’re looking to improve your credit score or to grow your credit file, it’s a good idea to have multiple open and active cards. Paying your utility bills with a credit card can help ensure your card is regularly used. This can help your score improve in relative short order.
Paying your utility bills with a credit card can have several advantages. Just be sure it fits your personality and your money management style before going this route.