Is credit card payment possible for monthly bills?

Is credit card payment possible for monthly bills?

Is credit card payment possible for monthly bills?

Setting up automatic credit card payments for monthly expenses like your gym membership or video streaming subscription is one method to ensure you never forget to pay them. You may even accrue reward points if it is an available feature on your credit card.

The following are some benefits and drawbacks of using your credit card to sign up for monthly bill payments automatically:

Benefits of credit card bill payment: Using a credit card to pay for utilities and bills allows you to

If your card has this feature, get rewards points.

Never neglect to make your monthly payment.

Making consistent, on-time service payments may help you raise your credit score if your energy provider reports to the credit agencies.

Possible drawbacks

keep your equilibrium

It's crucial to keep an eye on your total amount and make sure you are paying off your credit card debt in full if you have set up your utility bills to be paid automatically by credit card. To ensure that you have enough money in your checking account to pay your credit card bill, be sure to set up a payment plan.

Interest rate

The interest you spend on a credit card debt you are unable to pay back adds to the monthly cost of your expenses if you carry a balance from one month to the next.

Additionally, even with a low annual percentage rate (APR), interest costs are not to be taken lightly. This is because you will be charged interest on the interest from the previous day, which is applied to your balance at the end of each day. Put differently, interest on outstanding credit card debt accumulates and grows daily, even if you do not use your card.

utility bills

Though not all states have this policy, be aware that some gas and electric providers levy an additional cost if you choose to pay your account with a credit card.

Do I need to charge my credit card?

Using your credit card to pay your bills automatically each month may be a great way to make the most of your credit availability since it guarantees on-time bill payments and may even earn you reward points. are carrying out.

However, this only benefits you in the long term if you make sure that you pay off your credit card debt in full each month. In order to continue paying payments each month, try to set up automated payments. Also, keep an eye on your amount to make sure it doesn't grow beyond your means.