Using CC to pay monthly bills

[Richierichdollar]

I use my cash back rewards card to pay my bills but I always have the money on hand so I just go to tmobile,coned etc pay with my cc then go to capitalone bank and pay what I owed on my bills to my credit card. The cash back isnt much but its better then paying cash and getting nothing back at all. I already have $40 in cash back rewards and I have only had my card for 2months cant wait till next year when they give me 50% of what I made during the year.

[longtimelurker]

---

@R0C wrote:

If you aren't using CCs to make your purchases you are losing out and giving away free money/ rewards. I use credit almost exclusively. There is rarely a time that I don't. At the end of the month I just PIF and repeat the process next month. Only purchase what you can pay off  and you will never pay interest. At the end of month/ year I have enough reward points to purchase big ticket items for free.

---

But I guess there is always a comfort level and the OP seems to have qualms, so do it sparingly at first.

After all, if you aren't doing manufactured spend, you are also losing out and giving away free money/rewards (big time!) but many on this forum do not do this.

[R0C]

Cash is King! I follow Dave Ramsey, but what he is saying is to not take out any loans other than a mortgage. Credit cards are needed because your FICO will hurt otherwise. Also, why not get something back for once. Let your money work for you.

[CREDITSURFER]

I have a low limit on my cash back card, even if it had a high limit id still do what i do now. As soon as a pay a bill with my card i post a payment online to pay it asap. I make about 20 payments on my card a month so it like im paying with my debit card but i get cash back. I usually only let 5-$25 dollars post for the monthly statement. Hope that helps.

[longtimelurker]

---

@mcf wrote:

hrrmmmz.. see this must be my problem i was always told Cash Is King! lol.. Im working on this idea of rewards, it makes sense why leave money lying around? You figure how much do you spend monthly on card even 1000 you get what 20 bux a month? so 240 at the end of year plus maybe a bonus of 100 so 340 bux to pay your bills? Is that about right hahaha??

---

The calculation depends on many things!   Most reward cards will give between 1 and 6% in various categories, and then maybe an annual bonus that is an additional portion of your points.  So the biggest factors on the earning side are what your card gives you on the areas that you spend the most in.

Then we get into redemption!  Cash back is simple, but many are earning points that can be used in various ways for rewards, particularly travel.  For things like Ultimate Rewards (Chase) and MR (Amex) you will hear claims that each point is worth anywhere between 2 and say 10 (or more) cents (based on premium cabin international flight awards, or top tier hotel redemptions, both via partners), so you will see people getting (the equivalent) of much more than 2% in your example.

With 5% earning, and redeeming at even 2 cents per point, $1000 gives 5,000 points, each worth 2c = $100, so 10%, and this is conservative for some.

(And this is real spending.  With manufactured spending, much much more is possible!)

[colindidit]

I put my cell phone bill and cable on my cards. Gotta pay it back eventually why not profit from it by getting rewards

[jsickz32]

I paid every bill that will take cc with cc! Then I pay it off as soon as the payment posts.