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Using Credit cards to pay bills to maximize rewards.

Frequent Contributor

Using Credit cards to pay bills to maximize rewards.

I heard something about using a Credit Card to pay monthly on your bills and then sending the payment you would normally send to the bill to the credit card. Can anyone explain this? For instance we get a monthly bill from ATT for cell phone. Could we use our AMEX to pay it and then pay what we would normally send to ATT to AMEX and get some sort of rewards for doing this?


Last App 05/04/2016
Message 1 of 22
21 REPLIES
Valued Contributor

Re: Using Credit cards to pay bills to maximize rewards.


nursepower wrote:

I heard something about using a Credit Card to pay monthly on your bills and then sending the payment you would normally send to the bill to the credit card. Can anyone explain this? For instance we get a monthly bill from ATT for cell phone. Could we use our AMEX to pay it and then pay what we would normally send to ATT to AMEX and get some sort of rewards for doing this?


Thats exactly what you would do I pay as many bills as I can on my cc.  Home tel, cell phone, auto insurance, tv etc.  then pay it in full before statement cuts.

Message 2 of 22
Established Contributor

Re: Using Credit cards to pay bills to maximize rewards.


nursepower wrote:

I heard something about using a Credit Card to pay monthly on your bills and then sending the payment you would normally send to the bill to the credit card. Can anyone explain this? For instance we get a monthly bill from ATT for cell phone. Could we use our AMEX to pay it and then pay what we would normally send to ATT to AMEX and get some sort of rewards for doing this?


I do this with my Chase Freedom and Discover cards to much success.

NFCU CashRewards $13.5k | AMEX BCE $15k | Lowes $17k | Sportsmanss guide $7.6k | Chase Freedom $1k | Discover IT $4.4k |
Walmart $8k | Gordman's $2950
Message 3 of 22
Frequent Contributor

Re: Using Credit cards to pay bills to maximize rewards.

So that's it? I just set up my payment preference using a credit card and then pay my card every month?


Last App 05/04/2016
Message 4 of 22
Mega Contributor

Re: Using Credit cards to pay bills to maximize rewards.

All that's required is that your biller accepts credit cards, ideally without an extra fee (yes, advanced students can use Bluebird even when the biller doesn't take credit cards).

 

There's not much difference between paying the AT&T bill with a credit card and buying something at Amazon with a credit card.  Just pay with your credit card, either on line or filling out the form that comes with the bill and sending it in, the biller is happy, you get rewards, and then you need to settle your credit card bill as needed.

 

 

Message 5 of 22
Mega Contributor

Re: Using Credit cards to pay bills to maximize rewards.


nursepower wrote:

So that's it? I just set up my payment preference using a credit card and then pay my card every month?


Yes,that is it. Always a good idea, as you get the rewards if your credit card has any, and you get a float (where the bill is paid but you haven't paid the credit card) period whether the card has rewards or not.

Message 6 of 22
Contributor

Re: Using Credit cards to pay bills to maximize rewards.


nursepower wrote:

So that's it? I just set up my payment preference using a credit card and then pay my card every month?


That's it.  It is an easy way to get some money running through your card that you would be paying anyway.  The same goes for gas.  A lot of cards with decent rewards on gas pruchases.  And if you travel around your state for work (like I do)  and get reimbursed for your gas(like I do)  You are bascially getting free rewards.


Gardening now for that spring harvest Entered 9/4/13 leaving 4/14
Message 7 of 22
Valued Contributor

Re: Using Credit cards to pay bills to maximize rewards.

I agree with all comments above.  I use credit cards to pay for most bills.  I even have a USAA rewards card that has no other purpose except to pay my USAA insurance bill (USAA only allow its own cards to be used for this).

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Message 8 of 22
New Contributor

Re: Using Credit cards to pay bills to maximize rewards.

I can pay my USAA insurance bill with any card. I currently use my AMEX PRG. I have both auto and renter's insurance and never saw a requirement that it had to be paid with a USAA issued credit card.

Chase CSR 22,000 | Chase Freedom Unlimited 13,000 | Chase CSP 10,000| USAA Cash Back $7,000 | AA Silver Aviator Card $10,000 | AMEX Everyday $9,000 | Chase Freedom $3,000 | Capital One Cash Rewards $4,000 | Discover IT $4500 | Nordstrom Store Card $2000
Message 9 of 22
Regular Contributor

Re: Using Credit cards to pay bills to maximize rewards.

Just make sure your utility , phone company etc don't charge u for paying by credit card. My insurance and power companies charge extra for a CC transaction

Starting Score: 620 Current Score: 709 Goal Score: 720
Gardening from 9/28/2013. Target: March 2014
Message 10 of 22