Paying Utilities With a Credit Card: Worth It?
Check for a fee first
Electric, gas, water, internet, and phone bills vary widely on card payments. Some billers accept cards for free, in which case your recurring utilities are easy, steady rewards spend. Many others, especially municipal water and power, route card payments through a third-party processor that tacks on a flat fee of a few dollars or a percentage of the bill. The first step is always to check your biller payment page for that fee.
Fee-free utilities are great recurring spend
When there is no fee, putting every utility on a card is a clear win: it is money you spend monthly anyway, now earning points and helping toward a welcome bonus. A few cards even bonus certain bills, though most utilities earn the base rate, so a flat 2 percent card or your current bonus card is the usual pick. Set them to autopay on the card and the rewards accrue on autopilot.
When there is a fee
If your utility charges a percentage fee, treat it like tuition or taxes: only worth it to unlock a welcome bonus, where the bonus dwarfs the fee. A small flat fee can still be worth it on a large bill if a bonus is in play, but not for ordinary 2 percent earning. As always, pay in full and confirm the charge is a purchase, not a cash equivalent. See paying taxes with a card.
Frequently asked questions
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