Can paying monthly bills be a great way to earn points, rewards and discounts on products and services? But is it advisable to pay bills with credit cards? Not all accounts are the same so you will need to evaluate each one to determine which ones make sense to pay with your credit card and which ones are not accepted for payment. But before we continue let’s look at the list, some pros and cons of paying bills with plastic we use as money.
|Earn rewards or points||Possible rates|
|Time-saving automatic payments||Increase in debt|
|Convenience of writing without checking||Additional interest if the balance is not paid in full|
|Tracking expenses easier with everything in one statement||The use of credit could rise, which could affect credit scores|
|It can mean additional time to pay|
|Can help fill out the application for credit card sign-up bonuses|
According to the best finance consultants not only from Brazil and other parts of the world, they are categorical in saying that anyone who wants to pay bills with credit cards ” needs to be disciplined and not spend the money with which would normally pay the bills . ” For everything to work out, you have to be able to separate what fun is, what basic expenses are, and what it’s like to pay urgent bills using your credit card as money.
In fact, there is an alert to keep credit card balances below 30% to 50% of pre-approved limits, if not, you know what will happen. Generally, paying bills, bills etc, using your credit card may be a good idea, provided you adopt two main rules:
- Always pay your full invoice balance every month at maturity.
- Never put bills on a credit card if you usually use the rotary, meaning you do not pay the bill in full.
If you use your credit card to pay bills and are unable to pay and pay off the bill’s debt, you end up paying additional interest and even fines on the amount due. On the other hand, if you have the custom of paying your bills on time, using a credit card has many hidden benefits.
What accounts can you afford with a credit card?
There are many types of accounts you can pay with your card, ideally you should contact your manager to find out which can and which account will possibly charge you an extra fee if you pay with a card. Let’s see what types of accounts make the most sense to pay by credit card.
Pay mortgage with card
Who owns mortgages can certainly confirm that this is the biggest monthly expense for most consumers. Mortgage payment tickets seem to be an easy way to get many points and bonuses when paying with your credit card, depending on the amount you give to accumulate significant points and travel for free at the end, beginning of year or vacation.
If you are fortunate enough to find a mortgage manager that allows you to repay your mortgage with a credit card, this is certainly going to be a great way to gain benefits.
Paying rent with card
For consumers who do not have a mortgage on the property that lives, that is, they pay rent, it may also be interesting to pay the mortgage payment slip with a credit card. Fortunately, real estate managers in Brazil accept for rent payments, checks, cash or issue tickets to be paid on the banking network.
If you are fortunate enough to rent a property where the company issues payment slips, consider using your credit card, especially if there is no extra convenience fee for that type of charge.
Pay card or car ticket with card
You can pay almost anything with a card since it is an invoice (ticket) and if you have a car financing, one way to pay your bill if you do not have the money on the day of expiration is to use a credit card for this.
The idea is not to make the card your way of payment, but to use it when you need to earn a little more time, but like any business done, you will pay interest on the remaining debt of the credit card if you do not pay the value of the invoice. In this case you need to check how much it is worth confirming this type of operation.
After you know everything you can not do if you pay your bills with your credit card, leaving your car registration cards to pay by credit card is the most practical option besides automatic debit.
Paying car and housing insurance with card
This form of billing is easier to set up straight with most insurance companies, but do your homework to ensure you’re not paying extra fees on the deal. Some insurers do not charge any fees, while others may charge interest if you pay above a certain number of installments.
So, it may make sense to pay these bills with your credit card, but only if you can avoid charging extra fees.
Pay card health plan
For self-employed, it is necessary to have health insurance plans, in general they are charged monthly, and just like car insurance, it is possible to set up direct payment on the card or debited from the checking account, plus the ticket for you to do as you wish .
And with the price of health insurance nowadays, this expense can earn you great rewards by paying with your credit cards. If your insurer accepts cards, take the opportunity and sign up to make your credit card payments.
Can I pay by credit card anything I want?
You can pay almost every type of consumer account, bill, ticket, invoice and also some taxes with a credit card, the care is to check that all are exempt of extra charges to make the payment and if you have inscribed your card in the programs of Smiles, bonus and punctuation awards.
Now that you know you can pay with credit card many of the accounts that were previously debited from the checking account – what you will do to get bonuses and bonus points on Smiles.