Are you wondering which credit card gives you the best when paying bills? Now it’s effortless to pay bills with a credit card anywhere anytime. Credit cards allow you to pay bills safely and securely. But what happens when you choose the wrong credit cards? This is why look at our 8 Best credit cards to pay bills and enjoy.
We know there is a sea of credit cards out there. But few credit cards reward you for simply paying your bills with the card. My Credit Planet removes the hassle of finding the rewards credit cards that reward you for the not-so-fun task of paying your bills by taking care of the heavy lifting for you.
Our top eight picks, selected from hundreds of credit card offerings, allow you to save money while paying your bills. Check out our top selections for those wondering which credit cards allow you to maximize benefits while paying utilities(1).
8 Best Credit Cards To Pay Bills: Know Them In Detail
Hundreds of credit card options have attractive offers and benefits from banks worldwide. However, not all of them are reliable or offer precious benefits. So, look at some of the best-picked credit cards for paying bills.
1. Blue Cash Preferred® Card From American Express: Best For Groceries
The Blue Cash Preferred Card from American Express is an excellent choice for families who spend more on groceries and streaming services. The credit card is ideal for people who want to earn cash back on transit, gas payments, grocery shopping, and other bill categories.
Why We Like This Card:
- Best For Grocery Shopping:
This American Express credit card will help you save a significant amount of money in grocery shopping. With a stunning cashback rate of 6% in all U.S. supermarkets, cardholders can go big on their purchases and earn a decent amount back.
- 6% Cash Back For Paying On Netflix And Hulu:
Enjoying your favorite shows has never been more accessible with this credit card. Like grocery shopping, the credit card offers a 6% cashback on payment for streaming services like Netflix and Hulu. This reduces the overall cost of paying for the services.
- 1% Back On All Purchases:
Besides the rewards offered by the credit card for groceries, gas stations, etc., it also offers a cashback of 1% on all purchases. The cashback is received in Reward Dollars which can be later redeemed as a statement credit.
Pros:
- 6% cash back at U.S. supermarkets for up to $6,000 per year;
- Null intro APR on purchases and balances for the first year (after that, 16.24-27.24 % variable APR);
- 3% cash back on transit, including parking, taxis, rideshare, and tolls.
Cons:
- $0 intro annual fee for the first year, then $95.
2. Wells Fargo Active Cash® Card: Best For Cash Back
This card rewards you lucratively for everyday purchases. Considering Americans rely on credit card rewards to cover the inflated cost of living(2), having a Wells Fargo Active Cash Card with 2% cash back on all purchases and qualified balance transfers is handy.
Why We Like This Card:- The following reasons make the card stand out:
- Consistent Cashback:
The Wells Fargo credit card is popular for its consistent cashback. This card provides an outstanding reward of 2% on all purchases made with this card. It helps cardholders to save a decent amount of money.
- Perfect For Common Expenses:
This credit card is perfectly suitable for ordinary expenses. This card’s rewards make it an excellent choice for medical, vet, utility, and many more bills.
- Offers $200 Cash Reward For Spending $1000 In First 3 Months:
Cardholders can earn an attractive bonus of $200 after spending $1000 in the first 3 months of receiving the credit card. This credit card can be used on all purchases to enable the reward.
Pros:
- $0 annual fee;
- 2% cash back;
- Cell phone protection against damage or theft with a limit of up to $600 per year.
Cons:
- Balance transfer fee.
3. Ink Business Preferred® Credit Card: Best for business expenses
If you own a business, the Ink Business Preferred Credit Card is at the heart of automating paying your monthly expenses. This card is ideal for business owners who spend more than $25,000 annually.
Why We Like This Card
- Fraud Protection:
Protecting yourself from credit card fraud is quite challenging in the current world of advanced technology. With this credit card, you will receive outstanding fraud protection. It comes with real-time fraud monitoring, protecting you from possible fraudulent activities.
- Protection Against Damage Or Theft Of Cell Phone:
Protect your phone against theft or damage with this credit card. The purchase protection feature of the card protects your cell phone device for 120 days after buying.
- Several Attractive Redemption Options:
This credit card will offer you several outstanding options for redeeming your rewards. You can redeem the points for gift cards, cashback, travel, and many more.
Pros:
- 100k bonus points when you spend $15,000 within the first three months. You can redeem the points for $1000 cash back or $1250 in travel expenses;
- Earn 3 points per $1 on the first $150,000 spent on travel and select business categories;
- Rental car insurance, trip cancellation, and interruption insurance.
Cons:
- $95 annual fee.
4. Citi® Double Cash Card: Best For Paying Bills Overall
A spender with no specific category would do best with a Citi Double Cash Card that gets you 2% cash back for every dollar you spend. The credit card is ideal for paying multiple bills owing to its convenient perks.
Why We Like This Card
- Fraud Protection:
The Citi® Double credit card comes with outstanding fraud protection. This card is actively monitored for fraudulent activities like people who shop online using stolen credit cards.
- $200 Cashback:
Credit cardholders can earn a decent amount of cashback with this credit card. For spending $1500 on purchases within the first 6 months, you can earn a special bonus of $200. The offer is available on all purchases mounting up to $1500.
- Outstanding Purchase Rewards:
This cash card provides a flat rate cashback. The card comes with an attractive 2% cashback on all purchases. Cardholders receive a 1% cashback when they buy something and an additional 1% for making the purchase. You don’t have to worry about it because it’s available unlimitedly.
Pros:
- 2% cash back on every purchase;
- No annual fee;
- No intro APR for the first 18 months on any balance transfer.
Cons:
- 3% foreign transaction fee.
5. U.S. Bank Cash+® Visa Signature® Card: Best For Home Utilities As A Diverse Category Bonus Earner
The U.S. Bank credit card allows you to choose the categories for which you can reap benefits. For paying recurring costs such as home utility bills, fast food, cell phone bills, bus and train tickets, gym memberships, internet and streaming services, prepaid air travel, and hotel and car reservations, you get between 1-5% cash back.
Why We Like This Card
- 1% cash back on all purchases:
Cashback on purchases helps cardholders save a decent amount of money each month. This card offers 1% cash back on all purchases of any amount. This will help you to save a significant amount of money by paying the bill and purchasing groceries.
- Great welcome bonus:
An attractive welcome bonus is lovable by all cardholders. With this card, you will receive a $200 bonus for spending $1000 on purchases. However, the $1000 must be spent within the first 3 months of opening the account.
- 5% Cashback On Two Categories Every Quarter:
This credit card offers an outstanding cashback benefit to its cardholders. The offer is eligible for the first $2000 spent every quarter. You can earn 5% cash back on two categories. Cardholders have the opportunity of choosing the two categories. And the categories include gym membership, streaming services, home utilities, and many more.
Pros:
- 5% cash back on your first $2,000 in eligible purchases every quarter in two categories you choose;
- Perfect credit card for utility bills;
- No annual fee;
- No intro APR on purchases and balance transfers for the first 15 billing cycles.
- A varying APR is currently 17.49% – 27.49%.
Cons:
- Foreign transaction fee.
6. Chase Freedom Flex℠: Best For Rotating Categories Cash Back
Chase Freedom Flex℠ allows conscientious spenders to get lucrative cash back for the categories they choose quarterly. While the $0 annual fee is nothing to write home about, the cell phone protection and generous cash back usually fly under the radar.
Why We Like This Card
- $200 Welcome Bonus:
This credit card offers an attractive bonus of $200 to new customers. Spending $500 within the first 120 days of opening the account will make you eligible for the bonus. This offer is available on all purchases.
- Cashback on Travel:
The credit card offers a 5% cash back on travel. Travel plans must be purchased through Chase Ultimate Rewards®. This helps cardholders to save a significant amount of money on travel.
- Flexible Reward Redeem Options:
Having multiple rewards redeeming options on a credit card is a blessing. This credit card allows you to redeem rewards into gift cards, cashback, and many more. You can also redeem direct deposit rewards in your U.S. savings and checking account.
Pros:
- 3% cash back on drugstore purchases, dining at restaurants, including takeout and eligible delivery services;
- Zero percent intro APR on purchases and balance transfers for 15 months from account opening;
- There will be a flexible APR of 17.24%-25.99%;
- Each quarter, you can earn 5% cash back on up to $1,500 in purchases in rotating bonus categories.
Cons:
- 3% foreign transaction fee.
7. Chase Freedom Unlimited®: Best For Chase Ultimate Travel Rewards
If you desire a 1.5% flat rate cash back for all purchases and a tiered travel reward system through Chase’s Ultimate Reward System, this credit card is a must-have in your arsenal. Pair the Chase Freedom Unlimited credit card with Chase Sapphire cards to get more bang for your buck.
Why We Like This Card
- 5% Cash Back On Travel Through Chase:
This credit card is a perfect choice if you are a regular traveler. Cardholders receive a cashback of 5% on travel. By purchasing travel through Chase, you can take advantage of this offer.
- 3% Cash Back On Drugstore And Dining:
Cashback on food and essential items helps us to save a large amount of money at the end of each month. With this card, you will receive a cashback of 3% on all drugstore and dining bills.
- No Annual Fee:
Cardholders do not have to pay any yearly fee to use this credit card. You can enjoy the features of the card without any additional cost.
Pros:
- 1.5% cash back on all purchases other than travel;
- Everyday bonus on dining and drugstores;
- Zero percent intro APR for the first 15 months of account opening.
Cons:
- 3% foreign transaction fee.
8. Capital One Venture X Rewards Credit Card: Best For Miles Rewards
The Capital One Venture Rewards Credit Card is a strong choice for a traveler who makes frequent purchases.
Why We Like This Card
- Perfect For Frequent Travelers:
This credit card provides excellent mile points to cardholders regarding hotel, travel, car rentals, and regular purchases. It is the perfect choice of credit card for people who travel regularly.
- Outstanding Bonus:
Cardholders receive an attractive welcome bonus of 75,000 miles. This is eligible to new cardholders for spending $4000 in the first 120 days of account opening. Travel bills totaling $750 are calculated from the 75,000 miles.
- 2x Miles Per $1 On Every Purchase:
This credit card provides 2X miles on all purchases made with the card. You will receive 2X miles for every $1 spent on purchases. This unlimited offer is available for as long as the account is open.
- No Foreign Transaction Fees:
Getting a credit card is a major decision, and choosing the right one is essential to manage your finances properly. When it comes to picking a credit card, there are several factors that you must consider. Check out the crucial factors before you choose a credit card.
Pros:
- No foreign transaction fees;
- Its platter of annual perks, including its travel credits and account anniversary bonus miles, can help you cover the $395 annual fee with little effort;
- Cheap annual fee compared to other cards in its niche.
Cons:
- $395 annual fee.
7 Must-Consider Factors When Choosing The Best Credit Cards
When you’ve decided to acquire a credit card, follow the below factors. You’ll never be deceived.
1. Credit Score Requirement:
One of the top factors you must consider when it comes to credit cards is the credit score requirements. Many banks have a specific credit score limit that you must match before being eligible for their credit cards. The range of credit scores typically ranges between poor to very good.
However, you can improve your credit score to fit the requirement if you are not eligible. A good credit score significantly enhances the chance of a successful application.
2. Interest Rate:
Before getting a credit card, make sure to look into the interest rates offered by the company. Many banks lure customers in by providing an interest rate of 0%. However, this introductory rate is available for the promotional period only.
Customers who pay during this promotional period or pay off the entire balance each month do not usually pay any interest. Once the promotional period is over, you will have to pay off the balance at the fixed interest rate, which can go up to 25%. Use a low-interest-rate credit card and know the promotional period properly.
3. Annual Fee:
Several credit cards available in the market come with a fixed annual fee. However, many credit cards do not require any annual fee for you to continue using the card. And several cards will try to lure you with cashback and rewards in exchange for a yearly fee.
But going for a credit card with no annual fee is the most brilliant move. So, continue looking for a credit card to pay bills until you find one with zero annual fees.
4. Penalties:
Before getting a credit card to pay your bills, taking the penalties that come with it into account is essential. Along with the credit card’s interest rate and annual fee, make sure to consider the fines associated with it. These penalties can cause you to pay extra due to late payments or exceeding the credit balance. So, make sure to know and understand the penalties and use the card accordingly.
5. Credit Limit:
The credit limit is the amount of money you can spend with your credit card before it stops working. The credit limit varies on several factors, including card version, credit score, bank credibility, etc. Once the credit limit is reached, you will have to pay off the card’s balance to make purchases with the credit card again.
Before signing up for a credit card, make sure to enquire about the card’s credit limit. However, the credit limit is often determined once the bank approves the card. But knowing the minimum credit limit gives an idea about how much you can spend with your credit card.
6. Number of Cards:
Considering the number of credit cards you have is essential before getting a new one. Ideally, having more than two credit cards can be dangerous as it can cause you to get into debt easily. If you are new to credit cards, it is better to have only one card that can easily be paid for each time.
7. Rewards:
The next factor to consider is the rewards offered on the credit card. Various banks offer bonuses with their credit cards. And these rewards depend on the usage of the card and the balance payment. The rewards are usually provided as cash back or points and miles.
Cashback rewards are most popular as they offer cardholders a way to save money and get a decent return on their usage. It allows you to save money on travel or redeem points as gift cards. On the other hand, using a credit card for miles and points is also a great idea.
FAQs:
Is It Smart To Use A Credit Card To Pay Bills?
Paying bills with a credit card is an innovative and easy way to track your expenses. However, keep two rules in mind when using a credit card to pay your bills. First, pay off all the credit card balances each month properly.
This proper payment is essential to avoid penalties on the credit card and earn rewards. And the second rule is to ensure you do not exceed the credit limit.
Does Paying Bills With A Credit Card Build Credit?
Cardholders receive several benefits for paying bills with a credit card. And one of these attractive benefits is credit building. If the cardholder uses the credit card carefully and pays off the balance each month, it helps build credit. This will help the user to improve their credit score.
Not only that, but an improved credit score will come in handy in several ways. It will also help the cardholder to apply for a new credit card easily if required.
How Many Credit Cards Should You Have?
The ideal number of credit cards that a person should possess depends on their usability or credit score. However, having two to three credit cards is more than enough to build a good credit score. But you will have to ensure the balance is paid off within time.
But having multiple credit cards can be risky as it can easily get the cardholder into debt. One or two credit cards are the best option for new credit card users.
Picking the Best Card for Paying Bills
I have covered excellent credit card options for offsetting your monthly bill payments. Whether you are looking for travel points, maximum cash back, or an easy-to-manage credit card, rest assured you’ll find the perfect match in our list of top eight picks. I hope you’ll narrow it down to one or two cards based on your spending patterns.
If you are looking for personal recommendations, I would suggest the U.S. Bank Cash+® Visa Signature® Card and Wells Fargo Active Cash® Card. Both of these are great for outstanding rewards and cashback. Not only that, but the zero annual fees make these cards a top choice.
References
- Kumok, Z. (2018, December 26). Should I Pay Bills with a Credit Card or Checking Account? Experian. Retrieved November 11, 2022, from https://www.experian.com/blogs/ask-experian/should-i-pay-bills-with-a-credit-card-or-checking-account/
- Howell, T. (2022, August 8). Americans rely on credit cards to ease the pain of inflation and spend through summer. Washington Times. Retrieved November 11, 2022, from https://www.washingtontimes.com/news/2022/aug/8/americans-rely-credit-cards-ease-pain-inflation-sp/
