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 earning rewards. But paying bills with a credit card may not always be the best option.

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.

• Using a credit card for your regular bills can offer the chance to earn rewards. 

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

You can typically use a credit card to pay a wide range of bills. They can include 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 charge additional fees if you pay with a credit card. That’s especially common for taxes.

Mortgages, car loans and student loans are types of bills that typically can’t be paid with a credit card. For some types of loans, there may be third-party services that can accept credit card payments and then pay the bills for you. But these services typically charge fees. And the transactions could be considered cash advances.

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 related to:

• Flexibility: With a credit card, you may be able to pay online, by phone or in person. 

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

• Budgeting: Paying bills with a card could help you manage your expenses by providing an at-a-glance view of your monthly expenses.

• Protections: Credit card statements can act as proof of payment if there’s a dispute.

It’s also important to consider potential drawbacks of paying bills with a credit card. 

• Fees: 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 ACH transfers might be better options.

• Interest charges: If you don’t pay your credit card bill in full, there are also potential interest charges to consider.

Whether it’s worth paying bills with a credit card is up to you. If it doesn’t cost you extra, it could be worth it. But remember that paying bills with a credit card means that those charges become part of your credit card balance, along with any other charges you’ve made. 

And how you manage those monthly payments can affect your credit scores and debt. As the Consumer Financial Protection Bureau (CFPB) explains, you should make your payments on time, every time. It adds that the “higher the balance you carry from month to month, the more interest you pay.” 

But paying off your balance every month could help you avoid interest charges altogether.

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 physical 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 fees or interest. 

Want to find a card that fits your needs? See if you’ll be approved for a Capital One card with 100% certainty before accepting an offer. It takes as little as 90 seconds and won’t impact your credit scores.