In some circumstances, itâs possible to pay bills with a credit card. But how do you know if itâs a good option? And what factors should you explore before paying bills with your credit card?
Paying your phone bill with a credit card can be a smart move. Most major phone, cable and internet providers accept credit cards as a form of payment. Setting up auto-pay with your credit card helps ensure you never miss a payment and get hit with late fees.
Beyond avoiding late payments there are some additional benefits to putting your phone bill on a credit card
Earn Rewards
Many credit cards offer robust rewards programs, allowing you to earn cashback, points or miles on every purchase. When you use a rewards credit card to pay your phone bill, you can earn 1-5% back in rewards That rebate effectively brings down the cost of your monthly phone and internet services.
The best rewards credit cards for phone bills include:
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The Citi Custom Cash Card – Earns 5% cashback on up to $500 spent each billing cycle in your top eligible spending category, including phone bills.
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The Chase Freedom Flex – Earns 5% cashback on up to $1,500 in quarterly rotating bonus categories, which sometimes includes phone bills.
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The Wells Fargo Active Cash Card – Earns unlimited 2% cashback on all purchases.
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The Capital One SavorOne Rewards Credit Card – Earns 3% cashback on entertainment purchases, including streaming services and cable bills.
If you spend $100 on your phone/internet bill each month, you could earn $3-5 back by charging it to one of these cards. That rebate helps counteract the cost of monthly services.
Cell Phone Protection
Some credit cards provide cell phone protection when you use the card to pay your cell phone bill. This benefit will reimburse you for damage or theft of your phone, less a deductible, up to 2 claims per year.
Cell phone protection is usually secondary to your carrier insurance, but can supplement coverage with lower deductibles. Cards that offer this benefit include:
- Wells Fargo Propel Card – $600 protection per claim
- U.S. Bank Visa Platinum Card – $600 protection per claim
- Bank of America Customized Cash Rewards Credit Card – $600 protection per claim
This perk alone can offset the annual fee on some credit cards. Cell phone insurance plans from Verizon, AT&T and T-Mobile cost $7-15 per month. If you already pay for carrier insurance, cancel it after adding cell protection via your credit card.
Introductory 0% APR
Many credit cards offer 0% intro APR promotions, allowing you to forego interest on purchases for 12-18 months. If you recently signed up for a new card with an intro 0% offer, you can pay your phone bill using the card without racking up interest charges for over a year.
This gives you time to pay off your phone bill each month before accruing interest. Just be sure to make at least the minimum payment by each due date. And have a plan for paying off your balance before the 0% intro period ends to avoid deferred interest.
Buy Now, Pay Later Flexibility
Credit cards allow you to float a balance from month to month, effectively letting you buy now and pay later. This flexibility can come in handy if you need to finance the purchase of a new smartphone or other device through your wireless provider.
Rather than opting for carrier financing or installment plans to split up the cost, charge the full amount to your credit card. As long as you eventually pay off the balance within the intro 0% APR period, you incur no interest charges on the purchase.
Drawbacks to Consider
While using a credit card to pay your phone bill can provide some advantages, there are a few potential drawbacks to note:
No Autopay Discounts – Some carriers like T-Mobile only apply autopay discounts when you use bank account payments, not credit cards. Missing out on a $5-10 per line discount could negate any rewards you earn.
Credit Card Transaction Fees – A small number of providers charge convenience fees for credit card payments, usually around $2-5. This could exceed any cashback rewards earned.
Carrying a Balance – If you don’t pay off your bill in full each month, interest charges on revolving balances can quickly outweigh any rewards.
Overspending – Swiping a credit card doesn’t feel as tangible as handing over cash. Using plastic to pay bills could lead to overspending.
To maximize benefits and avoid drawbacks, follow these tips:
- Use a rewards card with no annual fee to avoid cutting into your rebate
- Check your provider’s autopay and payment policies to earn any discounts
- Pay your balance in full each month to avoid interest charges
- Set payment alerts and monitor your credit card balance to avoid overspending
How to Pay Your Phone Bill With a Credit Card
Paying your monthly phone, cable or internet bill with a card is easy. Here are the basic steps:
1. Select “Make a Payment” in Your Online Account
Log into your account on your provider’s website. Find and click on the “Make a Payment” section.
2. Choose “Pay by Credit/Debit Card”
Select the option to pay by credit or debit card. Make sure your billing details like amount due and account number are correct.
3. Enter Your Card Details
Provide your credit card number, expiration date and CVV security code. Many providers let you store your card for future bills.
4. Confirm Your Payment Details
Carefully review the payment amount and card details before submitting. Print or save the confirmation page.
5. Setup Recurring Payments
For automatic bill pay each month using your card, select auto-pay options in your account settings.
Paying with a credit card is quick and convenient through provider websites and apps. Just ensure you closely monitor your credit card spending and balance when using this payment method.
The Bottom Line
Paying your monthly phone, cable and internet bills with a rewards credit card can help you earn cashback and offset some costs. Take advantage of perks like cell phone protection and intro 0% financing offers. But avoid interest charges, watch for fees and consider lost discounts. Weigh the pros and cons, and use credit smartly to maximize benefits.
Potential benefits of paying bills with a credit card
Making bill payments with your credit card can have some advantages. These could include:
- Credit building: Using your card responsibly over time by doing things like making on-time monthly payments can help you build a credit history and improve your credit scores.
- Convenience: Some credit cards include a variety of digital bill-pay benefits. For example, Capital One offers AutoPay, which lets you set up automatic payments for your monthly bills.
- Rewards: You may be able to earn rewards like cash back, points or miles when you pay bills with a rewards credit card.
- Flexibility: Whether you choose to pay online, over the phone or in person, you can generally use a card.
- Protection: Credit card statements can act as proof of payment in a dispute.
What else to consider before paying bills with a credit card
Before you use a credit card to pay bills, consider whether:
- You understand the terms of the credit card. If youâve read the credit card customer agreement and account opening disclosures, youâll know what to expect when it comes to due dates, fees, interest rates and other information.
- You can pay the credit card bill on time. As the Consumer Financial Protection Bureau (CFPB) explains, you should make your payments on time, every time. Thatâs because your payment history is an important factor in calculating your credit scores. Missed or late credit card payments can affect your credit and lead to late fees and higher interest rates, depending on your card.
- You can pay at least the minimum. Paying your balance in full every billing cycle might help you avoid paying interest. But if you canât pay your balance in full, the CFPB recommends paying as much as possibleâand making at least the minimum credit card payment. As the CFPB explains, âThe higher the balance you carry from month to month, the more interest you pay.â
Debit Card vs Credit Card – What should I use on paying Bills, Online/Store shopping, ETC…
FAQ
Is it okay to pay a phone bill with a credit card?
You can pay some bills with a credit card, such as utility, phone, and medical bills. If you can’t pay your bills with a credit card, you might be able to get a cash advance or balance transfer.
What bills cannot be paid with a credit card?
That depends on the bill and the business. You might be able to pay bills with a credit card. Mortgages, rent and car loans typically can’t be paid with a credit card. You might have to pay an extra fee if you use a credit card to pay some bills, like your utility bills.
Can you pay a phone contract with a credit card?
In short, yes, you can. The same things you would do with a debit card will need to be filled in for your credit card.
Can you pay by credit card on a phone?
Google PayTM with Visa: Google Pay, which used to be called Android Pay, lets you pay with any Visa card from a list of participating issuers on a number of popular devices, whether you’re shopping in-app or in-store.
Should you pay your cellphone bill with a credit card?
You won’t get “points rich” simply by paying your monthly cellphone bill with a credit card. But it’s still important to use the right card to cover that monthly expense. Some issuers even offer smartphone-related perks, like built-in cellphone protection, for when you damage your phone.
Can I pay my bills with a credit card?
Yes, you can pay most bills using a credit card. If you pay with a credit card, some companies will charge you extra. Others will require you to pay by direct debit from your bank account or offer you a discount if you do. However, in most cases you should be able to pay with your credit card. Whether you would want to is another question.
How do I pay bills with a credit card?
Another bill you might pay with your credit card is your phone bill. You can likely set this up online on your phone provider’s website or by giving them a call. If you’re unsure of how to pay bills with a credit card, simply consult your phone provider. You’ll typically face no additional processing fees.
Can you pay a cable bill with a credit card?
Cable is another bill you can pay with a credit card. To determine how to do so, you’ll want to consult your cable provider. You may be able to give your credit card number over the phone or on the website where you make payments. Setting up autopay is also usually an option with a credit card.
Should I pay my monthly bills by credit card?
In general, paying your monthly bills with a credit card can be a good idea as long as you follow these two rules: Always pay your statement balance in full and on time each month. Avoid putting bills on a credit card because you can’t afford to pay them with cash.
Can someone else pay my credit card bill?
Your credit card bill can be paid by someone else over the phone or through online banking. These are the easiest ways to do it. Someone else could also pay your credit card bill by mailing you a check or going to a branch of the bank that issued the credit card itself.
