If you have been asking yourself if paying bills with credit card funds is a good idea, then this information will provide you with all the details you need in order to make a solid descision if paying bills with credit card payments is the way to go or not. It will give you a detailed list of the many aspects of bill payments with a credit card including the pros and cons, so you can weigh them out and see if you should apply it to the way you pay your bills.
Paying bills With Credit Card Payments – Pros & Cons
PROS
- First off if you decide to pay bills with credit card installments than you will set yourself up for earning excellent rewards through the multiple credit card rewards programs that are out there. Every time you use your card, you will get points that you can use towards many thingsl like gift cards, electronics or pure cash. This method also provides you with the opportunity to recieve cashback on top of your rewards points when you pay your monthly bills with a card. These points add up quickly especially if you are paying big bills like rent or card payments, equating to bigger free prizes.
- They are an excellent way to build credit if your credit score is down in the slums or if you simply just want to make it better. Companies have cards that are geared towards their customers who have low credit scores and provide them the opportunity to build back up their score over time by submitting their account information each month to one or more different credit bureaus. Everytime you make a payment that is ontime to your credit card company, it results in helping boost your credit score.
- When it comes to paying bills with credit card payments, you can set up an option that allows the payments to be extracted at a certain time in the month when your bills are due. This is an excellent option that makes you never miss a payment, whether you remember or not. This will avoid many things like you paying fees on late payments and also giving you a good repuation with the bill collectors that you are paying.
CONS
- If you lose your credit card or it is stolen two things can happen. One, the card can be used by someone else in a fraudulant way, and second you will have to go through the trouble of canceling a card and sometimes paying a fee to get a new one.
- Another downside to paying bills with credit card funds is that some of the bills you are paying on may charge you a small convenience fee to charge your card. Although it is a small amount of money, it is still a downside.
- If you ever swtich credit card providers, you must make sure to let them know you changed, or it can set you up for a host of problemsm because the card service was cancelled and there are no funds for bills to be paid.
- Some utility companies and other companies don’t except credit card payments.
- When you no longer need to pay a bill for whatever reason, it is sometimes a hassle working with customer service to stop these payments on your card.
Paying Bills with Credit Card – Conclusion
As you can now tell, there are many ups and downs to the paying wills with credit card payments method. Although there are both negative and positive, the positive aspects simply seem to outweigh the negative aspects when paying bills with credit card funds.
