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

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yeyeman9
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Should you be paying bills with credit card to earn points?

Postby yeyeman9 » Sun May 27, 2012 7:27 pm

Is this smart? Is it smart to pay your bills (phone, cable, internet, apartment, electricity, water...etc) with a credit card, even if you have the money with you? And basically just balance the credit card out as soon as you have paid the bills? Or will you get charged some interest rate and the bills will end up being more if you pay with a credit card?

I was thinking about paying this stuff with a CC to gather points/cash back, since it seems better than just paying for it and not getting anything back....Thoughts?


DavidNY
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Postby DavidNY » Sun May 27, 2012 8:56 pm

Most of my monthly utility bills are paid automatically with my Fidelity Amex card, which gives 2% cash back.

One biller that isn't paid with a credit card charges a fee for paying with one, which is more than the rewards I would get from using the card.

There's no interest when the credit card bill is paid in full.

yeyeman9
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Postby yeyeman9 » Mon May 28, 2012 12:25 am

Awesome I was planning on doing that as well. So basically as long as you pay it on time, you don't have any kind of charges?

Now how quickly do you pay the bills back? I mean, how long do you have until you start getting charged for that? A month is it? Or does it depend based on the cards?

Thanks for the information and help!


jeffysdad
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Postby jeffysdad » Mon May 28, 2012 8:00 am

What DavidNY said. My Fidelity Amex is set up to autopay full statement balance with a debit to my checking account on the first of every month. This incorporates the card's grace period. So, for instance, my last electric bill debited Fidelity Amex on May 23. The card cycles on June 2 so the statement balance that contains the May 23 electric bill won't be debited from my checking account until July 1.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

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danpass
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Postby danpass » Mon May 28, 2012 8:04 am

I've been doing it on my Amex green so that I pay the entire amount. Essentially delayed cash. As that habit gets better then I'll move bills onto another card, say a new card, to meet a spend requirement, PIF, then back to Amex charge :D

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bisbicos
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Postby bisbicos » Mon May 28, 2012 11:35 am

I'm in college and live with 5 other guys. I pay all the bills with my cards to get points and then pay it off immediately with the money they give me. Been doing it for about 3 years

Automatic payments with my discover more card earn me almost $5 a month just on cable/internet alone
Credit Cards
American Express: Fidelity Rewards (2% cash back) 9.5k
Zync NPSL
Discover: Discover More (5% rotating categories) 12k
Mastercard: Chase Freedom (5% rotating categories) 4.6k
Visa: Citi Forward (5x pts on restaurants) 15.7k
Citi Dividend (5% rotating categories) 5.6
Capital One Journey (1.25% cash back) 1.25k
BofA AAA (5% on gas) 2.5k
PenFed Platinum Rewards (5% on gas 3% groceries) 7.5k

Future Cards
US Bank Cash +
Chase Ink

yeyeman9
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Postby yeyeman9 » Mon May 28, 2012 6:26 pm

Nice. I will definitely be doing it then. I am still a big newb at all this, but hopefully I will start getting the hang of it, slowly but surely....thanks for all the answers by the way.

Now the big question is, are you all using cash back for this? or are some of you using point rewards?

The way I understand it is, in case of the AMEX BlueCash is that what the cash back means is that you get a financial statement, meaning that you will get "credited" that amount. So lets say you have $50 in cash back, and you buy something for $100, then you only need to really pay $50 if you use those $50 you had in cash back...correct?

Thanks!


DavidNY
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Postby DavidNY » Mon May 28, 2012 9:06 pm

Amex Blue cash only gives 1% cash back on bills. You can get 2% back on bills and everything else with the Fidelity Amex as long as you can use Amex without a surcharge. The only other 2% card for bills is Discover, but the 2% is limited to certain types of bills and they only guarantee the 2% rewards through 2012.

yeyeman9
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Postby yeyeman9 » Mon May 28, 2012 9:57 pm

What defines the fact of whether I can use the Fidelity Amex without a surcharge? My Credit Score? If so, I am kinda screwed. This will be my first credit card and I don't have a credit score yet...I am going to start my full time job in a month or so.

jeffysdad
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Postby jeffysdad » Tue May 29, 2012 10:49 am

FIA won't charge you to pay recurring bills with your Fidelity Amex. However, your counterparty might impose a fee to recover its transaction costs (interchange fee that it is charged by the cc company). Among major billers this seems to be rare in my experience.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.



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