You can pay many bills with a credit card directly, including cell phone bills, insurance premiums, magazine subscriptions, streaming services, cable and internet, medical bills, tax bills, and more. If you pay bills with a rewards credit card, you can also earn what amounts to a discount in the process. That said, look out for fees when paying bills with credit cards. Some companies tack on an extra fee if they have to process a credit card payment, and the fee may be enough to negate any rewards you’d earn in the process.
You can’t pay every bill with a credit card though – at least not directly. Some bills that don’t generally accept credit cards for payment include rent and mortgage payments, car loan payments, and credit card bills. However, you can pay some of these bills with a credit card by using third-party services, such as Plastiq, PayPal, RadPad (for rent only), or Paytm. These third-party apps charge a fee to send payments with a credit card, ranging from 2% to 3%, so make sure the benefits outweigh this cost.
On that note, it’s worth considering whether it’s a good idea to pay your bills with a credit card, especially if the billers don’t generally accept credit cards. If you’re paying your rent or mortgage with a credit card because you don’t have the cash, it may work as a temporary fix, but it probably won’t be sustainable for very long. Also, if you make a habit of leaving a balance on your credit card, you will end up with interest charges, debt, and potentially high credit utilization. All of those things could hurt your credit score. If you’re using a credit card for the rewards-earning potential, just be sure that you’re earning more rewards than you’re spending in extra fees.