Should you pay utility bills using a credit card?

Paying your utility bills using your credit card is a great way to earn rewards and discounts. It is quite convenient. However, you may have to pay a small convenience fee every time you pay using your credit card.

These days, digital payments have penetrated everywhere. They offer you the convenience of paying bills from your home. What’s more? You get to earn reward points and cashback benefits every time you use your credit card to make payments.

Most banks allow you to make payments via credit card for free. However, some payment gateways charge a very small fee of 0.25%- 0.75%, of the transaction amount, as a convenience fee for such payments. If you are willing to ignore these very small fee amounts, then credit cards are the best option to pay your utility bills.

Here are the benefits of paying your utility bills using a credit card: 

1. Earn higher rewards and cashback points on your credit card

2. Helps you to maintain a healthy revolving credit 

3. Auto-pay facility helps you to pay most bills automatically

4. You are able to track all your transactions in one place

Key Takeaway: Paying your utility bills with a credit card is highly convenient. However, you have to ensure that your credit card bill is paid on time every month. This way, you can achieve a healthy credit score too.