What bills can you pay with your credit card?
Always on the lookout for money saving ideas, but at the same time feel annoyed that bills keep on coming through the door, or into your inbox? We understand the feeling only too well, and that’s why we are focused on helping our readers and our customers to slash their bills, and at the same time, avoid making mistakes that could lead to even bigger ones in the future!
In this article, we are going to explore the question ‘What bills can you pay with your credit card?’.
Paying your gas bill
Signing up for, and subsequently paying your gas bill with a credit card, is absolutely fine; you shouldn’t have any problems. In fact, you’ll join a growing community of over 3.4 million gas and electricity bill-payers (roughly 11% of the total figure), who pay via credit card. Depending on the provider, you will be able to either input your card details into the online form when paying online, or you will be able to do it over the phone with a customer service representative.
Paying your electricity bill
Paying this fee works exactly the same as your gas bills, and also like the gas bills, you may be given the option of monthly, quarterly or yearly charges. Electricity and gas bill-payers who pay with credit card make up more than half of the 21% of Brits paying their utility bills in this manner.
Internet, Water and Council Tax
These bills can all be paid with a credit card too, making the answer to ‘What bills can you pay with your credit card?’ pretty comprehensive. The biggest problem is that paying all of your bills with a credit card means you are actually paying more for your bills than originally; as much as £100 a year for the privilege in some cases.
What are the reasons for paying with a credit card, and are they always bad?
Actually, one of the best reasons for using a credit card to pay the bills is to trigger certain rewards and perks that the credit card companies may include. If you pay in full, you can earn certain benefits, but the problem is that the majority of credit card bill-payers are using their cards because they are having challenges with cash flow, and managing household expenditure.
Cash flow is a problem for many households, and is seen as one of the reasons for the surge in credit card bill-paying, so here are a few top tips to keep abreast of your bills.
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Stick to one card
Using multiple cards is going to cause confusion, which can easily result in extra charges, and greater fees than were originally planned-completely negating the need to use credit cards in the first place – a lack of available funds. Sticking to one card will keep you organised, and as your finances improve over time, will allow you to move your bills away from this singular card, and onto your current account, one by one.
Don’t try to pay your credit card bills with another credit card
It won’t work. This is one of the few types of bill that you simply can’t pay with a credit card. In the UK, it is estimated that there’s more than £5bn of debt in a black hole, due to people who sadly can’t keep up with their rent and utility payments.
Using a credit card, if you are not able to pay in full at the end of the month, is what may sometimes be known as a ‘self-inflicted price hike’. This is only going to add to household costs, and, consequently, more stress and anxiety further down the line. If you are caught in a vicious cycle of not being able to pay your bills, and are putting them on a credit card, we recommend you seek professional financial help.
If this option seems daunting, why not try to reduce your bills, using one of our guides below:
Now we’ve answered ‘What bills can you pay with your credit card?’, have a look around our website and see where else we can help you.