A major benefit of using credit cards is the reward points earned on various transactions. These reward points can be exchanged for cash, air miles, attractive discounts and offers on various stores and shops.
Apart from the incentive offered by credit card issuers, users find it convenient and simple to pay their bills through this mode. But is it worth it? Some banks may charge you fees for paying bills via credit card. You should compare different cards and apply for the one that charges little or no fee on bill payments.
How to Pay Bills Through Credit Card?
If you wish to use your instant credit card for paying your utility and other bills you need to create a login account and add the billers from the list provided by your bank. The list generally contains all major utility service providers for gas, electricity, insurance, telephone, and Direct to Home or broadband services.
You cannot make any payment to a biller who is not on your bank’s list. But if the biller is in your bank’s list you have to make the selection and enter your customer number and other required detail. You also have to option to give a standing instruction to the credit card issuer and the bill amount will get charged to your credit card every month.
Benefits of Using Credit Cards to Pay Bills
Here are some reasons why you should consider paying your bills via credit cards:
- Get Rewarded: Credit card companies encourage their customers to make all kinds of payments via card and offer incentives to them for the same. The awarded reward points can be collected over time and can be exchanged for cash or discounts or attractive offers on hotel and flight bookings. So, you can pay your electricity and other bills and earn points and then use the same to get good discounts at your favourite store.
- Convenience: Payments made via credit cards are highly convenient as you do not need to write a cheque or go to the electricity or water or phone office to deposit them. Online payments via credit cards take just a few seconds and thus are preferred over going personally to make the payments. You can even automate your bill payments via credit card while setting a limit for the amount to be paid.
- Keep Track of Payments:Once you make a bill payment via credit cards, you get notifications for future bills too making it easier for you to remember their due dates. In many cases, you can even automate the bill payments to save time.You can easily keep track of all your payment including bill payments by viewing the monthly credit card statements.
Apart from these benefits you get adequate time (till the end of the credit cycle) to pay the amount used to pay a bill. But in many cases, the bank will charge you some transaction fee. You should check this out while submitting your online credit card application.