Can you pay bills with a credit card?

Many merchants accept credit card payments. That’s great news for convenience. Depending on your card, it could also mean rewards for you. 

But credit cards aren’t always an option. And paying bills with a credit card may not always be the best option. So what factors should you consider before you start?

What you’ll learn:

• Depending on the type of bill and the merchant, you may be able to use a credit card to pay bills.

• Mortgages, car loans and student loans are types of bills that typically can’t be paid with a credit card. 

• If you pay certain bills with a credit card, you may be charged a convenience fee.

• Using a credit card for your regular bills can offer the chance to earn rewards. But make sure you know what to expect when it comes to things like credit card payment due dates and interest rates.

You can typically use a credit card to pay a wide range of bills. They can include bills for utilities, internet, cable, phones, streaming services, insurance and rent. You may also be able to use a card for tax payments to the government. 

But some merchants might charge an additional fee if you pay with a credit card. That’s especially common for taxes.

There are some potential benefits and disadvantages of making bill payments with a credit card: Using your credit card to pay bills can have advantages, such as allowing you to:

• Pay with flexibility. Whether you choose to pay online, by phone or in person, you can generally use a credit card. 

• Earn rewards. When you pay bills with a rewards credit card, you may be able to earn rewards like cash back or miles.

• Manage cash flow. Paying bills with a card could help you manage your expenses. That could be especially helpful if your paychecks and payment due dates don’t always align.

• Get payment protection. Credit card statements can act as proof of payment in a dispute.

• See expenses at a glance. Paying bills with one designated card could give you an at-a-glance view of your monthly expenses and help you budget more effectively. 

But it’s also important to consider costs, because you could end up paying more to use a credit card if a merchant charges processing or convenience fees. In those cases, debit cards, checks or bank transfers might be better options. There are also potential interest charges and impacts to your credit, depending how you manage your monthly credit card statement.

There’s no definitive answer as to whether you should pay bills with a credit card. It can depend on the policies of merchants and service providers. It also depends on the specifics of your situation.

Paying bills with a credit card means, of course, that those charges become part of your credit card balance—along with other charges you’ve made. To make sure you can responsibly handle paying bills with a credit card, you may first want to: 

• Be sure you can pay your credit card bill on time. As the Consumer Financial Protection Bureau (CFPB) explains, you should make your payments on time, every time. That’s because your payment history is a key factor in calculating your credit scores. Missed or late credit card payments can affect your credit and, depending on your card, lead to late fees and higher interest rates.

• Plan to pay as much of your balance each month as possible. Paying your balance in full by the due date every billing cycle might help you avoid paying interest. But if you can’t pay your balance in full each month, the CFPB recommends paying as much as possible—and making at least the minimum credit card payment. As the CFPB explains, “The higher the balance you carry from month to month, the more interest you pay.”

• Understand your credit card’s terms and fees. If you’ve read your credit card customer agreement and account opening disclosures, you’ll know what to expect when it comes to due dates, fees, interest rates and more.

There are different ways to pay bills with your credit card, depending on the type of bill and the situation. 

• In person: If you’re paying a bill in person, you might use a payment terminal to swipe, insert or tap your card. 

• Over the phone: Paying over the phone involves giving your card details to a customer service representative or an automated system. 

• Online: Depending on your credit card issuer, you may be able to use a virtual card number, which can help keep your actual credit card number more secure. 

• Automated payments: For recurring bills, such as subscription services, you might be able to schedule automatic payments.

Paying bills with a credit card can offer flexibility and the chance to earn rewards. But those benefits may not be worth it if you end up paying additional processing fees. 

Want to find a card that fits your needs? You can see whether you’re pre-approved for a Capital One credit card. It’s quick and easy, and it won’t impact your credit scores.