Should you be paying bills with credit card to earn points?

For just about anything you want to get off your chest about credit cards.
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FastSRT8
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Postby FastSRT8 » Tue May 29, 2012 10:55 am

Tell my why you wouldn't! It's a great way to keep all your bills sorted into one account.
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yeyeman9
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Postby yeyeman9 » Tue May 29, 2012 2:46 pm

I thought I wouldn't, FastSRT8, because I was told that they could perhaps charge me for it. Say I spend $100 in bills, it might end up being $110 even if I pay on time. But this is wrong isn't it? If I manage to pay the bills on time, I will end up paying the same amount ($100 in this case) and won't be charged anything extra...?

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FastSRT8
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Postby FastSRT8 » Tue May 29, 2012 2:54 pm

yeyeman,

The credit card company should not charge you more to process your other bills. HOWEVER, the company whos bill you wish to pay may charge you a proccessing fee. Check with the vendors you wish to pay with your credit card.
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yeyeman9
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Postby yeyeman9 » Tue May 29, 2012 3:18 pm

I see. So basically it just depends on the vendor whether they charge more for using a Credit Card or not. gotcha! thanks!

FutureBillionaire
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Postby FutureBillionaire » Tue May 29, 2012 3:54 pm

Using your credit cards to pay your bills yields you cash back and rewards points, PLUS it allows you to leap forward in time. Someone mentioned that they don't actually pay cash for their bill until a month later due to paying the credit card bill rather than the utility or whatever seperately. I have been doing this for years. I'm extremely happy that I fixed my credit so I could take advantage of this.

As a side note, the FIA Amex the posters of give you the most overall bang for your buck. I find that it is good to have multiple cards with different due dates so you can spread your checking account debits to pay each card over a period of time. I also try my best not to use a card until after the billing cycle has closed. I use the card and then pay the statement before it closes again. This allows my card to report a low utilization to the credit bureau even though I may have charged hundreds of dollars to it. I have made 100s of dollars in rewards over the past couple of years and I highly recommend using some form of these tactics.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

yeyeman9
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Postby yeyeman9 » Tue May 29, 2012 7:04 pm

What kind of problems might arise from a high utilization though? I mean, why do you find it important for them to report a low utilization?

FutureBillionaire
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Postby FutureBillionaire » Tue May 29, 2012 7:48 pm

High utilization negatively impacts your credit score and your ability to get approved for other cards. It isn't important if you aren't going to have a credit event coming up soon. I want to refinance my house, so I'm always keeping my score as high as possible.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

yeyeman9
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Postby yeyeman9 » Tue May 29, 2012 8:20 pm

What is the best practice to have a low utilization then? I mean, you don't use it for everything you buy?

Crashem
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Postby Crashem » Wed May 30, 2012 1:45 am

Use it as much as you want, but generally pay the bill before the statement is generated so utilizatoin is reported being low.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

yeyeman9
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Postby yeyeman9 » Thu May 31, 2012 1:58 am

I am guessing the statement is generated once a month?



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