Pay monthly bills with credit cards?

**PMMM** · 08-25-2010, 05:45 AM

Good question. I typically use my credit card for all purchases. The main reason is that I can get points for every dollar spent that can then be used for free airfare. My wife and I like to go to Maui every year for vacation but I don't like to pay the airfare. Typically in a year I spend enough to cash in the miles to get free round trip airfare.

An added benefit is that my money can sit in the bank collecting the measly interest the bank pays until the bill is due. I pay it electronically so I can pay it on the date it is actually due. I have another credit card that gives cash back for use but I prefer to have the air miles.

As well credit cards typically give better consumer protections when it comes to large purchases in case of a defective purchase or some other issue with the product bought.

The key is to pay it in full each month. If you do NOT have that discipline then I would not recommend using this process.

Regards,

PMMM

**bjl584** · 08-25-2010, 05:51 AM

Most people that do this on purpose is because they have a strategy for doing so. Reward points, sky miles, discounts on gasoline are all reasons that people use credit cards for monthly expenses and them immediately pay off the balance.

**snshijuptr** · 08-25-2010, 06:44 AM

I often have to charge trips for work. That can get my bill up pretty high, but then I get cash back from my credit card and reimbursed by my job.

The only bill I have on my credit card is Netflix. I wish I could put more, but most are not cool with that.

**Slug** · 08-25-2010, 07:08 AM

It's getting harder and harder to do with businesses shying away from the practice or charging a fee for using a CC which of course negates any advantage to actually using the card.

**disneysteve** · 08-25-2010, 07:31 AM

Originally posted by starnz View Post

I notice there are a lot of people who regularly charge upwards of $3,000 a month on their cards and pay the balance at the end of the cycle. Just wondering from the people who do this, is it just miscellaneous spending that gets racked up on the cards or are you paying monthly household bills?

Since I'm one of the people who does this, I'll chime in here.

Yes, we pay as many monthly bills as possible with our credit card. That includes our land line and cell phones, cable, alarm, auto insurance, professional society dues, newspaper and magazine subscriptions, all medical copays and bills, Netflix, gas, groceries, dining out, travel and pretty much all household spending. I've said before, the only thing I routinely spend money on that doesn't go on the credit card is casino gambling.

**disneysteve** · 08-25-2010, 07:32 AM

Originally posted by snshijuptr View Post

The only bill I have on my credit card is Netflix. I wish I could put more, but most are not cool with that.

I don't think that's true. See my previous post. We pay lots of bills by credit card.

**PMMM** · 08-25-2010, 07:44 AM

I agree with you Steve. I can think of nothing that cannot be payed with a credit card. Even most fast food restaurants will take credit cards. I'm real cheap at lunch and hit the Jack In The Box dollar menu occasionally and the bill comes to like $2.93. They gladly take my credit card.

PMMM

**disneysteve** · 08-25-2010, 07:48 AM

Originally posted by PMMM View Post

I can think of nothing that cannot be payed with a credit card.

I wouldn't go that far. I have numerous bills that either don't accept CC payment at all or charge a processing fee for doing so. For example, I used to pay our auto registration by CC but then they started charging a fee for that, so I went back to paying by check. The IRS accepts tax payments by CC but charges a fee. Our life and disability insurance doesn't accept CC but our auto insurance does. I can't pay my lawn guy by CC. I can't pay our synagogue dues or our daughter's religious school tuition by CC.

So lots of bills can be paid with a credit card but lots of bills can't.

**Joi** · 08-25-2010, 09:03 AM

Originally posted by disneysteve View Post

I wouldn't go that far. I have numerous bills that either don't accept CC payment at all or charge a processing fee for doing so. For example, I used to pay our auto registration by CC but then they started charging a fee for that, so I went back to paying by check. The IRS accepts tax payments by CC but charges a fee. Our life and disability insurance doesn't accept CC but our auto insurance does. I can't pay my lawn guy by CC. I can't pay our synagogue dues or our daughter's religious school tuition by CC.

So lots of bills can be paid with a credit card but lots of bills can't.

I'm planning on paying my rent every month with a credit card which is kinda cool. I'm hoping that it will help trigger a CLI since I don't spend much money on anything else. On the other hand, I hope it doesn't backfire and make me look risky to my CC issuer

**feh** · 08-25-2010, 09:57 AM

I use our CC for all possible expenses, including monthly bills. I get 1-5% back in cash.

**snshijuptr** · 08-25-2010, 10:35 AM

Originally posted by disneysteve View Post

land line and cell phones, cable, alarm, auto insurance, professional society dues, newspaper and magazine subscriptions, all medical copays and bills, Netflix, gas, groceries, dining out, travel and pretty much all household spending.

Well looking at your list I wouldn't count many of those as "bills" (specifically the last 5). We don't have many of the others, but there are a few exceptions:

cell phones: I don't think Verizon lets us do that...I should check
auto insurance: I admit I forgot that I can and do charge that one
professional society dues: mostly lumped under reimbursements
medical copays: I don't know if I count this as a "bill"

I was thinking more along the lines of rent, electricity, tuition, and car payment. When I think bills, I think monthly expenses. Yes Steve, most annual bills are charge-able.

**disneysteve** · 08-25-2010, 11:14 AM

Originally posted by snshijuptr View Post

cell phones: I don't think Verizon lets us do that...I should check

I bet they do. We have AT&T for cell phones and Verizon for land line and both take CC payments.

**dfeucht** · 08-25-2010, 11:29 AM

Verizon definitely allows you to charge via credit card.

**skydivingchic** · 08-25-2010, 11:44 AM

I charge anything and everything I can to the CC. Groceries, gas, travel, restaurants, trips to Target, etc. The only "bill" I am able to charge is my Verizon cell phone. I set that up with Verizon online for recurring billing. When I had a gym membership, that was also charged automatically to the CC each month, which I had to set up with the gym. As Steve mentioned, some places charge a fee for using a CC, so I don't use it for that unless I will make more money back than the fee. Other places like my utility bill or mortgage flat out don't accept CC for payment. But every place I can, I use it and pay in full each month. I don't know if you can set up bill pay for things through your CC company. All my recurring charges were set up through the company doing the billing (Verizon, for example).

Pay monthly bills with credit cards?