In most cases, yes. Always check with the company that issues the credit card to be sure. However, most cards view bill payments as transactions. With rewards cards, you can earn points or cash back based on these transactions, as well.
Like most transactions, paying bills with the card can help you earn rewards. Protect your money: Credit cards generally offer better fraud and purchase protection than debit cards and aren't connected to your personal cash. Improve your credit scores: Using a credit card can improve your credit scores.
Generally speaking, paying your monthly bills by credit card can be a good idea as long as you're able to adhere to two rules. Always pay your statement balance in full and on time each month. Avoid putting bills on a credit card because you can't afford to pay them with cash.
“As long as you manage the debt responsibly and are not charging more than you afford to repay each month, using a credit card for monthly subscription fees can have some benefits.”
Utility, cable, internet and phone bills
Paying your utility bills or bills related to cable, internet and the phone typically won't help your credit score. That's because these types of companies typically don't report payments to the credit bureaus. But this, too, is starting to change.
Paying utilities, rent and cell phone bills can help build credit if they're reported to the credit bureaus. If certain bills aren't reported to the credit bureaus, you can consider using a third-party service to report your payments.
Generally, utility bills typically do not appear on a credit report unless they're delinquent and referred to a collection agency. You can use a service like Experian Boost to include utilities bills in your payment history.
Depending on the type of bill and the merchant, you may be able to use a credit card to pay bills. Mortgages, rent and car loans typically can't be paid with a credit card. You may need to pay a convenience fee if you pay some bills, like utility bills, with a credit card.
The bottom line. Be aware of any convenience fees you'll incur by paying your bills with credit cards. It's best to use credit only for products and services that won't charge a fee, and using cash, debit or bank transfer for the rest.
In general, NerdWallet recommends paying with a credit card whenever possible: Credit cards are safer to carry than cash and offer stronger fraud protections than debit. You can earn significant rewards without changing your spending habits.
They advise against using your credit card to pay for things like rent, gas, cash advances, medical bills, buying a car, and expensive events like weddings. While it can be tempting to put everything on your debit card for budgeting purposes, there are financially savvy reasons to swipe your credit card.
If your car loan lender allows it, you can make a car payment with a credit card. However, credit card purchases impose fees on the merchant, so many loan servicers accept only cash-backed payment methods, like a debit card, check, money order or a direct transfer from a checking or savings account.
In reality, carrying a balance isn't necessary to build your credit; it's better to pay your credit card in full each month to maintain a low credit utilization ratio and save money in interest charges.
Charging your cellphone bill to your credit card, then paying off your card balance in full and on time each month will help you build a solid payment history, benefiting from your cellphone account.
Online payment allows you to pay money via the internet. Buyers will use this type of payment when they purchase goods online or offline. They can use different types of online payment methods, including debit/credit cards, wire transfers, net banking, and digital wallets.
It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.
Consistent on-time payments for those credit-related bills helps improve your credit score. But unless they become very late, everyday utility, cable, or cellphone bills are generally invisible to credit reports – and therefore not counted in your credit score at all.
The best way to pay your credit card bill is online using your bank account as it is quick and easy and can also be automated to ensure you pay the full amount, on time, every month.
It is possible to pay rent with a credit card, but it may be more complicated and costly than you think. Not all landlords offer this option, and if they do, it's likely with an added charge to cover their transaction fees.
Yes, credit card companies do like it when you pay in full each month. In fact, they consider it a sign of creditworthiness and active use of your credit card. Carrying a balance month-to-month increases your debt through interest charges and can hurt your credit score if your balance is over 30% of your credit limit.
You can pay using your credit card and debit card. MySmart Pay Bill Facility can accept any credit or debit card bearing the following logos: Visa. Mastercard.
You can make a contactless payment at any terminal or point of sale machine where the contactless symbol (wifi symbol) appears. At all other terminals, you will have to either swipe or dip your card and enter your PIN to complete your transaction.
If you're dealing with Verizon Collections, it's possible you haven't made payment for a wireless, internet, phone or TV subscription. When you don't pay a utility bill, the company can send it to collections, damaging your credit.
Key Takeaways
Wireless carriers do not typically report account cancellations to credit bureaus. Settling outstanding balances before cancelling your plan is crucial to avoid potential issues with debt collection agencies. Late or missed payments on your wireless account can negatively affect your credit score.