It’s Fine to Use Credit Cards to Pay Bills Online
There are many advantages to having a credit card. One of these advantages is the convenience that credit cards offer. It is possible these days to almost completely avoid carrying any cash or checks with you as long as you have a credit card. Now that so many of us are used to paying for our purchases with credit cards, it’s not surprising that a credit card can even be used to pay for many of our services and routine monthly bills as well with the advent of online bill paying options.
It is common knowledge that most banks now offer online bill paying. To take advantage of this option, a checking account must usually be maintained with the financial institution in order to set up the online bill pay. More recently, some banks allow you to add a credit card onto your online bill pay account as an additional funding source. The credit card can then be used to pay if you do not have the funds immediately available in your account to cover your bills, or even if you wish to simply take advantage of the 25-day free loan, or grace period, offered by most credit card companies. Using a credit card to pay recurring payments can also help you to earn points, cash back, airline miles or other rewards offered by your credit card.
Whatever your motivation is for exploring the online bill paying option the place to start might be with your bank. The first step is to go to the bank’s website for online banking and set up an online user ID and password for your account. Then you can sign up for the bank’s online bill program, generally by entering your checking and/or credit card account information. Most banks will already have a standard list of merchants that accept electronic bill payments, along with different choices for sending a payment or signing up to automatically pay recurring payments to specific merchants or companies.
Because of the popularity of online and automatic bill paying, many credit card associations have also been aggressively signing up new merchants and companies to accept online credit card payments in recent years. This option is often now available simply by going to the company’s website and signing up, without having to even go through your bank. Some of the companies providing direct online bill paying you’re your credit card include wireless phone services and satellite television providers. This includes many types of companies that may have traditionally only accepted payment in the form of a check. More and more businesses that bill monthly, including mortgage companies, large apartment complex owners, power and electric utilities and cable television companies are joining the ranks of those accepting on-line credit card bill payments.
The potential benefits of using online bill paying are numerous. Think of the money that can be saved in a year simply by avoiding the cost of checks and stamps. Another advantage of using online bill payment is that it will guarantee the on time payment of your most important bills. Whether you use online bill pay for your mortgage, rent, utility, or even credit card payment, the advantage of not having to either remember to make the payment or worry about being late makes it worthwhile to take advantage of this program.
When you use your credit card for online bill payments, you can also increase the rewards you earn. Large, recurring monthly payments can be used to your advantage to earn even more points towards cash back, rewards, or airline mileage.
There are very few excuses left for not taking advantage of the financial convenience offered by online bill pay. Most banks don’t even charge monthly service fees for their bill payment services. It is, however, important that regardless of whether you use online bill pay for the convenience or the rewards, it’s critical to always pay the credit card used on time each month. You also need to pay the amount in full instead of simply the minimum, or the cost of carrying a balance will soon outweigh any of the advantages. As always when dealing with credit, discipline is the key.