Can you use credit cards to pay monthly bills? | Chase (2024)

FAQs

Can you use credit cards to pay monthly bills? | Chase? ›

Having your monthly bills paid with your credit card automatically can be an excellent use of your access to credit, because it ensures that you're paying your bills on time, and possibly earning reward points in the process.

Mortgages, rent and car loans typically can't be paid with a credit card. If you pay some bills, like utility bills, with a credit card, you may need to pay a convenience fee. Using a credit card for your monthly bills can offer opportunities to earn rewards.

If your finances are in good shape, paying some of your monthly bills with a credit card makes sense. But it's still important to prioritize paying off your credit card statement balance each month. With careful planning, you can pay many of your bills by credit card.

“Some of the best credit users utilize less than 7% of their credit limit each month, though a great guideline is to use at maximum 30%.”

In general, NerdWallet recommends paying with a credit card whenever possible: Credit cards are safer to carry than cash and offer stronger fraud protections than debit. You can earn significant rewards without changing your spending habits. It's easier to track your spending.

It may be possible to use a credit card for your mortgage and rent payments, but it's uncommon and you may run the risk of getting into more debt.

Some providers accept credit card payments directly, while others require you to go through a third-party processor, such as Plastiq. Third-party companies generally charge fees; these may be in addition to fees charged by the utility company.

Paying off your credit card balance every month is one of the factors that can help you improve your scores. Companies use several factors to calculate your credit scores. One factor they look at is how much credit you are using compared to how much you have available.

The minimum payment on a $3,000 credit card balance is at least $30, plus any fees, interest, and past-due amounts, if applicable. If you were late making a payment for the previous billing period, the credit card company may also add a late fee on top of your standard minimum payment.

What is the number 1 rule of using credit cards? ›

1. Pay off your balance every month. Avoid paying interest on your credit card purchases by paying the full balance each billing cycle. Resist the temptation to spend more than you can pay for any given month, and you'll enjoy the benefits of using a credit card without interest charges.

You should use less than 30% of a $500 credit card limit each month in order to avoid damage to your credit score. Having a balance of $150 or less when your monthly statement closes will show that you are responsible about keeping your credit utilization low.

Your credit utilization rate affects your credit score. Try to keep your overall credit use to about 30% of your overall credit limit, if not lower. Extend your overall credit availability by applying for additional lines of credit, but don't apply for too many at once.

Paying your bills with a credit card can be a good idea if you want to get the most out of your card's perks, if your bill provider allows it and if you're careful to avoid debt.

In general, you should use your credit card at least once a quarter (every three months) to keep the card open and active. The answer to just how often you should use your card to maintain a good score comes down to your credit utilization and on-time balance payments, rather than how many transactions you have.

An installment plan on a credit card allows qualifying cardholders to pay for specific purchases in installments, which grants them the option to pay for purchases in small increments over several months for a minor fee or reduced interest rate.

“Using your credit cards to subscribe to services you can't comfortably afford to repay each month can result in missed payments and high balances, which can damage your credit score.”

No, you cannot use a credit card to pay other credit card bills. However, credit cards often have options like cash advance or balance transfer that give you access to "cash" funds. If you are short on money to pay your bills, you can use these funds to pay off your balance.

A credit card works by letting you borrow money from the credit card issuer to buy goods and services. You then pay the amount you've borrowed back either in full, or in monthly instalments. If you don't repay in full, you'll also be paying interest. You're able to spend up to a certain amount on the credit card.