You can earn 3% rewards in your highest eligible spending category, one of which is bills and utilities.
The Venmo Credit Card* is one of the few credit cards that offers you some flexibility in your rewards. Read more: Can You Pay Your Taxes With a Credit Card? Other common credit card features, like introductory APRs and welcome bonuses are also considered to derive the most possible value from your payment method. In the right scenarios, some of them may even net you a profit. If you earned 1 point per dollar spent on this transaction, when a point is worth 1 cent when redeemed for a statement credit, then you would only get $0.83 worth of rewards from using your credit card - significantly less than the $2.95 cost of the transaction.īelow we picked the best credit cards you can use to avoid a loss on your utility bill payments.
That means you’ll want to account for not only rewards rates that will apply to this transaction, but also the redemption value of those rewards. If you’re not in a financial pinch and are just focused on the rewards, you’ll want to make sure the rewards will exceed the extra cost of using a credit card to pay for your utilities.įor example, if you had an $80 electric bill with a $2.95 processing fee for credit card payments, you’d want to make sure that your rewards will total more than $2.95 for that transaction. This may be a flat-rate charge, usually less than $5, or a percentage of your bill.
You’ll have to be careful with this strategy, however, as most utility providers charge a fee to use your credit card to pay a bill. Paying a utility bill with a credit card can give you a few extra weeks to pay off your dues without interest accruing, or some extra points toward your next vacation.
But if you’re stretched thin one month, or are trying to earn as many points and rewards as possible out of your credit card, paying these bills with plastic might be the right move. Usually, your heating, electric, cable, internet and water bills prompt payment from your debit card or bank account.
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