Credit One Launches Secured Credit Card

by Cory Santos
credit-one-launches-secured-credit-card

Last updated on April 6th, 2023

Credit One Bank has quietly launched a new secured credit card. The Credit One Secured Visa lets cardholders build credit while earning cash back rewards on select purchases. Here are the full details of Credit One’s new secured credit card:

Credit One Bank Introduces Secured Credit Card

Credit One Bank is one of the most popular credit card issuers in the United States, thanks to its selection of credit cards designed for consumers of every credit profile and score. Now, the bank is making it even easier to build credit thanks to a new secured card.

The new Credit One Bank Secured Card is the bank’s first secured credit card, making it an ideal option for consumers that are either entirely new to credit (no credit history) or are looking to bounce bank from a negative even (bankruptcy, divorce, foreclosure, etc.). The card offers the following features:

  • No annual fee
  • $200 minimum security deposit
  • 1% cash back on gas, groceries, and monthly mobile phone, internet, cable, and satellite TV services payments
  • Visa Zero Fraud Liability
  • Prequalification before applying

How Does the Card Stack Up?

The secured credit card marketplace is very crowded, with new additions providing consumers with even more options. The Credit One Secured Visa’s biggest competition is likely from the Capital One Secured Mastercard, Citi Secured Mastercard, and the Discover It Secured Card. The card compares well with both, though it lacks the Discover and Capital One options upgradability – and offers reduced rewards versus Discover.

The Credit One card succeeds versus its rivals is the ability to earn interest on your security deposit. Cardholders receive a competitive interest rate on the $200 deposit (the minimum allowable deposit) – something many secured cards do not offer.

The Credit One Secured Card’s features are similar to those offers not only by Discover, but also by Continental Finance’s Surge Platinum Secured Mastercard. That card earns unlimited 1% cash back on all purchases but does feature an annual fee of $69. Other options that feature no annual fee include the Self Visa and Chime Credit Builder Visa.

Related Article: What Are the Easiest Credit Cards to Get for Bad Credit?

Featured image by mohamed_hassan/PixaBay

WSJ: Expect Visa & Mastercard Interchange Fee Hikes

by Cory Santos
Expect Visa & Mastercard Interchange Fee Hikes

Last updated on February 20th, 2024

Visa and Mastercard are set to raise fees on credit card transactions. After two years of delays due to the coronavirus pandemic, the fee changes are set to roll out in April.

Visa and Mastercard Expected to Raise Interchange Fees in April

Anticipate a change to your credit card fees starting in April. The Wall Street Journal (WSJ) reports that both Visa and Mastercard are set to raise fees on credit card transactions, as costs have ballooned for both payment networks during the COVID-19 chaos of the last two years. Interchange fees are expected to make up most of the fee increases. The report states that many of the impacted transactions will be online consumer credit-card purchases.

According to the WSJ report, both Visa and Mastercard will increase the fees on more than a dozen in-store purchase categories, including small and medium-sized grocery stores and many in-person retailers. Consulting company CMSPI believes Mastercard’s interchange fee changes will result in an estimated net annual increase of around $330 million for merchants.

What are Interchange Fees?

Interchange fees are an often-unseen charge added to the cost of a credit card transaction. These interchange fees are also known as “swipe fees” and are added by payment networks per-swipe fee charged by banks to merchants using credit or debit cards.

Some Business Sectors to See a Fee Reduction

It’s not all bad news for credit card users, however. Mastercard lowers merchant costs for transactions under $5 and reduces fees to COVID-impacted businesses, such as hotels and casual dining restaurants. Visa will lower fees for online and in-store purchases from retailers with less than $250,000 in annual consumer credit card volume. Additionally, according to a spokesperson, Visa will lower fees by 10% for more than 90% of American businesses.

Related Article: Types of Credit Card Fees

Featured image by mohamed_hassan/PixaBay

TD Bank Study Highlights Overspending, Return to Dining Out

by Cory Santos

Last updated on September 19th, 2023

A new TD Bank study has found that consumer spending habits are returning to their pre-pandemic norms. The bank’s annual Consumer Spending Index also highlights recent spending trends, which may fuel overspending when added with a return to old habits.

TD Survey Reveals a Return to Pre-Pandemic Spending

TD Bank has released the results of its 2022 Consumer Spending Index study. The annual Consumer Spending Index, conducted in partnership with ENGINE, surveyed 1,007 Americans 18 years of age and older who had at least one credit card.

The most significant finding from the study was a shift back towards pre-pandemic spending habits. Dining out at restaurants landed among consumers’ top spending categories. The survey also found a rise in spending on entertainment, fast food, and coffee compared to the previous year.

The 2022 TD Bank Consumer Spending Index study found the following:

  • 34% of respondents are looking forward to spending money on travel in 2022
  • 22% of respondents are looking forward to making home improvement purchases
  • 15% of respondents plan to spend on new technology in 2022

As mentioned, the study also hints at a trend towards consumer overspending. Since last year, spending on dining out has tripled, with 30% of respondents noting they splurge on meals outside the home, versus 10% last year. Additionally, 10% of those surveyed admit to overspending on entertainment.

Other areas of overspending include:

  • 54% of those surveyed admitted to overspending on shopping
  • 29% of respondents attribute overspending to shopping in-person (vs. 12% in 2021)

Is Inflation Causing Overspending?

Consumers may also be inadvertently spending more on routine expenses due to inflation. According to the Bureau of Labor Statistics, groceries, the top spending category in TD’s survey, experienced a price increase of 7.4% year-over-year in January.

“A variety of factors are hitting household budgets, so it’s more important than ever for consumers to be vigilant about tracking their spending and using credit responsibly,” said Paramita Pal, Head of U.S. Bankcard at TD Bank, in a press release. “And don’t leave money on the table. Nearly a quarter of rewards cardholders surveyed said they have let their rewards expire, primarily because they forgot about them. Smart spenders take advantage of card programs that make redeeming cash or points easy and don’t have expiration dates for rewards.”

About TD Bank

TD Bank, America’s Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 9.7 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. The bank features a variety of credit cards for personal and small business use, including the unlimited 2% cash back TD Double Up Card.

Related Article: The Ultimate Guide to Credit Cards for Groceries & Delivery Services

Featured image “TD Bank” by JeepersMedia is marked with CC BY 2.0.

Nilson Names Upgrade Card “Fastest Growing Card in US”

by Cory Santos
Nilson Names Upgrade Card “Fastest Growing Card in US”

Last updated on August 14th, 2023

Last year, Upgrade became the first fintech to make Nilson Report’s top 50 credit card issuers list. Now, Upgrade is enjoying even more success – reaching #27 on the latest Nilson Report thanks to over 500% growth in 2021.

Upgrade Card Fastest Growing US Credit Card According to Nilson

Fintech Upgrade has been named the fastest-growing credit card by outstanding balances by Nilson Report. The fintech and neobank was the first fintech to make Nilson’s top 50 U.S. Visa/Mastercard Credit Card Issuers in 2021, topping out at #48 on the list.

Upgrade’s growth has accelerated through Q3-4 of 2021, with the company more than doubling its level of outstanding balances (or money owed by accountholders). All told, Upgrade is claiming a growth rate of 539.5% year-over-year, placing it at #27 on Nilson’s top card issuers list.

Upgrade’s Innovations Continue to Prove Successful

“We are excited to see the continued momentum of Upgrade Card,” said Renaud Laplanche, co-founder and CEO of Upgrade, in a press release. “We believe we offer the lowest cost and most consumer-friendly card in the market, designed in such a way that consumers pay down their balance every month, save on the cost of interest, and sleep better at night as they’re paying down their debt.”

Upgrade’s product innovation and commitment to consumers’ financial health has catapulted the company to success in the past year, with the closing of two funding rounds valuing the company at over $6 billion. Since its inception, Upgrade has delivered over $12 billion in affordable consumer credit, including $7.5 billion in 2021 alone. Upgrade was ranked #1 in the Financial Times’ list of Fastest Growing Companies in the Americas.

About Upgrade

Upgrade’s products include a selection of credit cards designed to provide exceptional APR, robust rewards, and no annual fees. The fintech’s product line includes cash back cards, low rate cards, and a cryptocurrency rewards card:

Upgrade Cash Rewards Visa® Upgrade Triple Cash Rewards Visa®
Earn 1.5% unlimited cash back on card purchases every time you make a payment Unlimited cash back on payments – 3% on Home, Auto and Health categories and 1% on everything else
All Upgrade Visa cards provide the following benefits:
Combine the flexibility of a credit card with the predictability of a personal loan
No touch payments with contactless technology built in
See if you qualify in minutes without hurting your credit score
No annual fee

Upgrade has issued more than $3.5 billion in total credit since 2017. The company’s success is due in no small part to the cards’ exceptional APR – plus other great features. The fixed-rate nature of each Upgrade card balance continues to be helpful for consumers compared to traditional variable-rate cards.

Related Article: The Best Fintech & Crypto Credit Cards of 2022

Featured image by Upgrade

Amex and Resy Launch Every Resy Counts Promotion

by Cory Santos
amex-and-resy-launch-every-resy-counts-promotion

American Express and Resy have announced a new promotion designed to get Americans to dine at independent restaurants throughout March. Resy’s new Every Resy Counts promotion hopes to donate $500,000 to charity, with every millionth reservation resulting in free meals for select Resy and Amex diners.

Resy and American Express Launch Every Resy Counts

Amex and Resy have a new promotion, dubbed Every Resy Counts. The new program is a reservation drive to encourage millions of consumers nationwide to dine at independent restaurants through March. The effort is part of Resy’s broader Let’s Grab a Table marketing campaign, which focuses on bringing attention and support to independent restaurants throughout the country.

The first million completed reservations made on Resy will unlock a $500,000 charitable donation to Southern Smoke, a crisis relief organization supporting the food and beverage industry. Each subsequent million reservation milestone reached in March will result in Amex and Resy surprising select, lucky diners and covering the costs of meals at select restaurants across the United States.

“Connecting Amazing Restaurants with Passionate Diners”

“As we approach the two-year mark of the pandemic, restauranteurs continue to need community support to help make up for lost revenues,” said Elizabeth Rutledge, Chief Marketing Officer, American Express, in a press release. “By rallying together, we hope to inspire consumers to grab a table at independent restaurants throughout March and beyond, to help them continue to get back on their feet.”

“What restaurants need is diners to dine and seats to be filled,” added Alex Lee, Vice President and General Manager of Resy and the American Express Global Dining Network. “We have always been committed to connecting amazing restaurants and passionate diners, and now we’re putting our full muscle and combined resources behind the campaign to support the restaurant community.”

Complimentary Toolkit for Small Businesses

Resy and American Express have created a complementary toolkit for independent restaurants designed to help rally their customers. This toolkit includes digital assets like content, social media posts, signage, and more. The complimentary Amex independent restaurant toolkit can be found here.

Related Article: Dining Programs: How to Earn Airline Miles with Any Credit Card

Featured image by Resy

TD Bank Purchasing First Horizon Bank

by Cory Santos
td-bank-purchasing-first-horizon-bank

Last updated on August 14th, 2023

TD Bank is continuing its expansion with the acquisition of First Horizon Bank. Subject to regulatory approval, the proposed deal would see TD Bank become the sixth-largest bank in the United States by total assets and provide the bank with a sizeable footprint in the Southeastern United States.

TD Bank to Purchase First Horizon for $13 Billion+

First Horizon Bank and TD Bank are merging. TD Bank’s purchase of First Horizon Bank, believed to be worth around $13.4 billion, wouldn’t not only increase the bank’s footprint in Louisiana and Tennessee but would also see TD Bank become the sixth-largest bank in the country. The sale will also see TD Bank’s total number of locations climb to over 1,500 branches in the U.S.

“Tremendous Opportunity for TD Bank”

TD Bank released the following statement regarding the proposed merger with First Horizon Bank:

“The Southeastern U.S. represents a tremendous opportunity for TD Bank, and the addition of First Horizon’s commercial and specialty banking capabilities will position us as a leading national player in commercial banking. We will combine our resources and capabilities and continue to invest in the region as we focus on delivering the most differentiated banking experience in our markets.

“TD Bank and First Horizon share a common belief that we can only thrive when the communities in which we live and work thrive as well. TD Bank is committed to growing our presence and investments across the states in which First Horizon operates.”

About First Horizon Bank

First Horizon is a Tennessee-based financial institution with 460 branches located across the U.S. Southeast. States served by First Horizon include Florida, Georgia, Virginia, Louisiana, Tennessee, North and South Carolina, and Texas.

In recent years, First Horizon Bank has been something of a hot potato, with the new TD Bank takeover the second such takeover in just a few years, following IBERIABANK and First Horizon Bank merging in 2020.

Related Article: Citi Ditching Overdraft Fees

Featured image by TB Bank

Paceline Revamps Fitness Credit Card

by Cory Santos
paceline credit card

Last updated on April 7th, 2023

Fitness rewards app Paceline has relaunched its fitness credit card. The new Paceline Credit Card offers up to 5% back on eligible purchases, an Apple Watch statement credit bonus, and more for an annual fee of $60. Here are all the details of the revamped Paceline product:

Paceline Revamps Its Fitness Credit Card

The Paceline Credit Card is not new, having been launched around Halloween last year . The card, issued by Evolve Bank & Trust, was heralded as a first-of-its-kind fitness credit card that works within the Paceline mobile app ecosystem and offered the chance at a free Apple Watch for meeting spending and fitness requirements.

Now, after a series of fine-tuning, Paceline has announced changes to its fitness credit card. The new Paceline Card features include a lower annual fee (now $60, down from $120), a new earning rate on purchases, and a shortened sign-up bonus period (now one year, versus two years previously).

Paceline Credit Card Features

The main selling point with the new Paceline Credit Card is earning up to 53% cash back on health and wellness purchases. That 5% back rate is reliant upon the cardholder’s Paceline Streak status:

  • Eligible purchases made with an active Paceline Streak earn unlimited 5%
  • Eligible purchases made without an active Paceline Streak earn unlimited 2.5% back

A Paceline Streak is defined as a Paceline member achieving 150 or more elevated heart rate minutes per week, with no more than 50 minutes towards that goal coming from a single day. So if fitness is your passion, the Paceline Card might be right for you.

Health and Wellness purchases are defined by Paceline as follows:

  • Gym memberships and subscriptions, including Peloton, Equinox, SoulCycle, LifeTime, Orangetheory Fitness, Planet Fitness and more
  • Grocery stores including Whole Foods, Trader Joe’s, Instacart and more.
  • Qualifying pharmacy purchases at CVS, Walgreens, Rite Aid and others
  • Fitness equipment with brands including Peloton, Tonal, Mirror and Echelon
  • Fitness apparel and sporting goods with brands including Adidas, Athleta, Nike, lululemon, The North Face, Outdoor Voices, Patagonia and Under Armour

All other purchases with the card earn up to 3% back, with accountholders maintaining a Paceline Streak earning 3% back on every purchases and those not meeting fitness goals receiving unlimited 1.5% back on all other purchases.

Apple Watch Sign-Up Bonus

Thanks to an introductory offer, fitness fanatics also receive the opportunity to get their hands on an Apple Watch Series 7. New accounts that pay their minimum balance due every month and maintain their Paceline Streakfor 12 months to  receive up to $429 in statement credits towards the latest Apple Watch. That statement credit bonus is $8.25 each week a cardholder meets their obligations.

About Paceline

Paceline is the first-ever fitness rewards platform. The Paceline app provides a financial benefit to physical fitness by tracking activity and rewarding that activity with cash back rewards. Awards through Paceline include rewards from major names, including Dunkin’ Whole Foods, Starbucks, Athleta, Kind, Nike, and more. The Paceline mobile app is available through the Apple App Store.

Related Article: Help Plant Trees When Tapping with Chase Freedom Flex

Featured image by Paceline

Access Exclusive Seaport NYC Dining w/ Sapphire Reserve

by Cory Santos
access-exclusive-seaport-nyc-dining-w-sapphire-reserve

Chase and Seaport NYC are teaming up to provide Sapphire Reserve cardmembers with a once-in-a-lifetime culinary experience. Sapphire Reserve cardmembers can now book ultra-exclusive tickets to pop-up dining experiences with some of the city’s best chefs.

Chase Sapphire Reserve Cardmembers Enjoy Exclusive NYC Dining Opportunities

Chase is teaming up with The Seaport in NYC to bring back one of its most popular experiences. For 2022 The Seaport Food Lab will be available exclusively to Chase Sapphire Reserve cardmembers, who can indulge in a limited time, inventive pop-up meal experiences from some of New York City’s top local chefs.

From April 6 through 30, Chase Sapphire Reserve cardmembers can participate in this unique and intimate event, reserved for only 12 guests each night from Wednesdays to Saturdays. The featured chefs and residency dates are:

  • Chefs Josh Capon and Conor Hanlon (April 6 through 9),
  • Chef Michael White (April 13 through 16, plus April 20 through 23), and
  • Chef Leah Cohen (April 27 through 30).

At the Seaport Food Lab, Sapphire Reserve cardmembers can enjoy an immersive food experience that includes:

  • Hearing stories directly from the featured chefs as you enjoy a multi-course plated meal with a choice of beverages
  • A private dining room for the 12 total guests per night
  • Gratuities for food and drinks included

Ticket Details

Tickets are limited to 12 guests each night and cost $215 per seat. Tickets can be purchased with the Chase Sapphire Reserve or via Ultimate Rewards points through Chase Dining in the Ultimate Rewards platform. Remember that using the Reserve to secure a seat earns 10X points through Chase Dining purchases.

Reserve cardmembers can book this limited-time event now by navigating to Chase Dining in Ultimate Rewards via the Chase mobile app or logging in on the Chase website.

Related Article: Dining Programs: How to Earn Airline Miles with Any Credit Card

Featured image by Gruendercoach/PixaBay

Help Plant Trees When Tapping with Chase Freedom Flex

by Cory Santos
help-plant-trees-when-tapping-with-chase-freedom-flex

Chase and Mastercard are partnering up to give select Freedom Flex cardmembers the chance to plant up to three trees – just for using contact payments on their Chase credit card. The limited-time offer runs through March and is available to targeted Chase Freedom Flex World Elite Mastercard holders. Here is what you need to know about the special offer, Mastercard’s Priceless Planet Coalition, Conservation International, and how to take part in the promotion:

Chase and Mastercard Team Up to Plant 100 Million  Trees By 2025

Chase provides special limited-time-only offers to select cardmembers via targeted emails. For March, the bank has a new offer for select Freedom Flex cardmembers who haven’t yet used their contactless card to tap to pay for purchases.

Targeted Flex cardmembers (those who have yet to use the tap and pay feature on their Freedom Flex) can plant three trees via a $6 donation to Conservation International, in support of the Priceless Planet Coalition, when cardmembers use their Flex to tap and pay three times between March 1 – May 31.

Mastercard’s $6 donation to Conservation International as part of its  Priceless Planet Coalition. Mastercard’s Priceless Planet Coalition unites the efforts of merchants, banks, cities, and consumers to make meaningful investments to preserve the environment. Together with forestry experts, Conservation International, and World Resources Institute, the goal is to restore 100 million trees by 2025.

Alternative Tap and Pay Offers Available

Chase and Mastercard’s $6 donation to Conservation International is just one of two potential targeted offers from Chase. Some Freedom Flex cardmembers are receiving another $5 cash back bonus for completing the same Tap & Go transaction requirement. That 4% cash back bonus takes the form of 500 Ultimate Rewards points for making three Tap & Go transactions in March.

Related Article: Elan Adds “Across the Country Charitable Giving” Program

Featured image by Tama66/ from PixaBay

Barclays Aviator Business Card Returns w/ 70,000-Mile Offer

by Cory Santos
barclays-aviator-business-card-returns-w-70000-mile-offer

The AAdvantage Aviator Business Card from Barclays is available once more. The card was initially pulled late last year as American Airlines changed its AAdvantage loyalty program.

Barclays Re-Introduces AAdvantage Aviator Business Card

American Airlines made significant changes to its popular AAdvantage frequent flyer program in late 2021. These changes included introducing Loyalty Points and the phasing out of Elite Qualifying Miles, Elite Qualifying Dollars, and Elite Qualifying Segments. That process also saw alterations to the airline’s elite statuses, necessitating some of the carrier’s co-branded credit cards to be pulled from the market.

The  AAdvantage® Aviator® World Elite Business Mastercard® was one such credit card. The card was quietly removed in November but returned for March 2022 with a new welcome bonus.

New Aviator Business Card Features

Now live, the AAdvantage® Aviator® World Elite Business Mastercard® from Barclays features a sign-up bonus of up to 70,000 miles after meeting very modest minimum spending requirements. New accounts earn 70,000 bonus AAdvantage miles as follows:

  • Earn 60,000 miles after making $1,000 in purchases within the first 90 days of account opening
  • Earn an additional 10,000 miles after the first purchase is made on an employee card

The Aviator Business also provides plenty of everyday value for businesses that frequently fly with American or another Oneworld carrier. The card earns 2X miles on American Airlines purchases and on office supply, telecom, or car rental purchases, plus 1X miles on everything else.

Cardholders also enjoy the following perks for the card $95 annual fee:

  • 25% savings on in-flight food and beverages
  • First checked bag free
  • Preferred boarding for up to 4 companions
  • Annual companion certificate for $99 after spending $30,000 per year
  • 5% AAdvantage® mileage bonus on account anniversary on all miles earned
  • Complimentary employee cards

Other AAdvantage Business Credit Cards

Citi also issues AAdvantage credit cards for personal and small business use. The CitiBusiness® / AAdvantage® Platinum Select® Mastercard® is a similarly priced card ($99 annual fee, waived for the first year), and providing similar – if slightly more travel-focused – features to Barclays’ small business card.

Related Article: Citi Ditching Overdraft Fees

Featured image by 1577843/PixaBay

Bank of America Launches Premium Rewards Elite Visa Infinite

by Cory Santos
bank-of-america-launches-premium-rewards-elite-visa-infinite

Bank of America has a new ultra-premium credit card. The new Bank of America Premium Rewards Elite Visa Infinite offers up to 3.5X points on eligible purchases, travel and lifestyle statement credits, and more – for a hefty $550 annual fee. Here is everything you need to know about the new Bank of America Premium Rewards Elite Visa Infinite credit card:

Bank of America Launches New Premium Rewards Elite Credit Card

In late December, Bank of America unveiled new tiers to its popular Preferred Rewards program. The bank also released a new premium credit card to accompany the news, the Bank of America Premium Rewards Elite Visa Infinite credit card.

Bank of America Premium Rewards Elite Visa Infinite Card Details

Here is what Bank of America Premium Rewards Elite Visa Infinite cardholders can anticipate from their $550 annual fee:

  • 50,000 bonus points after making at least $3,000 in purchases in the first 90 days of account opening
  • Up to 3.5X points per dollar on travel and dining purchases
  • Up to 2.62X points per dollar on all other purchases
  • $300 annual airline incidental fee statement credit
  • $150 annual lifestyle statement credits
  • Additional 20% points boost for airfare points redemption
  • TSA Precheck/ Global Entry application fee statement credits every four years
  • No foreign transaction fees
  • Visa Infinite benefits

The impressive reward-earning potential of the Premium Rewards Elite comes with an eligible Preferred Rewards membership tier. Platinum Honors, Diamond, and Diamond Honors tier members earn the most rewards, with Bank of America Preferred Rewards members earning between 25% and 75% more points depending on their status.

Cardholders also get to choose how they want to be rewarded, with options including redeeming points for travel, cash back, statement credits, distinctive experiences, or gift cards. Cardholders also enjoy access to various exclusive lifestyle and travel benefits, including a complimentary 24/7 full-service concierge, generous credits for incidental airline charges and lifestyle conveniences, airfare discounts, special offers for luxury travel, and more.

“Designed to Further Enhance the Client Experience”

“The outstanding travel and lifestyle perks of Premium Rewards Elite make it an exciting addition to our suite of award-winning credit cards,” said Jason Gaughan, credit card executive at Bank of America in a press release.  “We’re proud to offer this new card designed to further reward and enhance the client experience.”

Related Article: Bank of America Expands Preferred Rewards Program

Featured image by Bank of America

How to Pay Your Bills with a Credit Card

by Allan Guzman Chinchilla
how to pay bills with a credit card

As long as you can afford it, using a financial product like a credit card to pay for as many things as possible can be a wise move. It’s convenient, it’s fast, and it can earn you rewards like points or cash back. If you’ve thought about paying for your recurring bills with a credit card, there are pros and cons, however. Whether you can, and should, choose plastic depends on the type of expense and whether it’ll cost you extra. Read on to learn more about paying bills with a credit card.

Bills You Can (and Can’t) Pay with a Credit Card

There are numerous service companies that allow you to pay your bills with a credit card – more than you may realize, in fact. Utility providers – such as water, heat, and electricity – cable and Internet providers, phone companies, and music or video streaming services all typically accept credit card payments. The Bilt Mastercard, for example, is a first-of-its-kind rewards credit card that earns points on rent payments.

Some insurance providers will also allow you to pay with plastic, and you can even pay some of your taxes with a card. Unfortunately, not all bills are payable with a credit card (by default). Mortgages and rent, car payments, and student loans are generally not eligible for credit card payments.

In certain cases, the companies that process these bills may make exceptions, but you must contact them directly and inquire. Regardless of the type of expense you can pay with a credit card, be wary of convenience or processing fees that you may be charged, which could make the entire approach no longer worth it (more on that below).

What Are the Advantages of Paying Bills with a Credit Card?

Taking care of your ongoing financial responsibilities with a credit card can certainly work in your favor. Below are the main benefits of doing so:

  • You can earn rewards for using your credit card to pay bills. By using a cash back or travel rewards credit card to pay your bills, you can easily earn points or money every month for expenses you need to make anyway. Putting a large charge on your credit card, like rent or a mortgage (if the provider allows it), will add a nice boost to your rewards tally, especially if the card you use has an earning multiplier.
  • It’s easier to earn a sign-up bonus. As a new account holder, your card issuer may offer a signup bonus – like 50,000 points or a $200 statement credit (such as you’ll find with the Chase Freedom Flex, Unlimited, or Citi Custom Cash, etc.)– but you’ll most likely need to meet a spending requirement of a few thousand dollars within a time window. Put your bills on your credit card and you’ll reach that goal faster.
  • You can save time making payments. If you write and mail checks from your bank account to pay your bills on time, using a credit card will significantly cut the time it takes to submit your payments. Whereas mailing a check will take a few days for the recipient to receive it – which can be risky if you’re close to your due date – paying with a credit card is practically instantaneous.
  • You may save some money. Several card issuers offer an auto-pay option to ensure you’re never late on your payments. Some will even lower your monthly cost when you opt for this feature. While you can use a checking account when resorting to auto-pay, a credit card is also a smart alternative.
  • It can help you keep better track of all your expenses. Using a single credit card to pay for several bills allows you to view all your payments within a single statement, therefore you’ll have an easier time staying organized. Additionally, it’ll be less likely that you’ll forget a payment.

Are There Downsides of Paying Your Bills with a Credit Card?

Just because you can pay for a bill with a credit card doesn’t mean you should, and if you do, you’ll need to be disciplined. These are the most significant disadvantages of going the way of plastic:

  • You may have to pay convenience or processing fees. Some service providers don’t charge fees for processing credit card payments, but others do. If there is a fee, it will usually be a small flat amount or a percentage. However, those fees can add up if you use a credit card to pay for several bills that incur them, so you’re really increasing your monthly expenses by living with fees – in addition to your typical interest rates. Plus, if you use a card that earns points or cash back, those rewards are essentially being offset by the convenience fees you must pay.
  • Your credit card balance and credit utilization ratio will increase. If you add bills to a card’s ongoing list of charges, you will naturally have more to pay off your balance each month. In addition, using up more credit will raise your utilization ratio, which is one of the most important factors when calculating your credit score. If your utilization ratio is consistently high, your credit score will eventually begin to decrease. Moreover, mounting balances and a climbing ratio will make you look less favorable to future lenders who may get the impression that you’re constantly in need of a line of credit in order to get by, and result in higher credit card interest rates down the line.
  • You may easily end up owing a lot in debt and finance charges that will be difficult to pay off. Related to the above point, adding bills to your credit card balance can be treacherous if you already have a significant amount owed. Spending only what you can afford cannot be overstated, because not paying your statement balance in full every month will result in interest charges, and missing payments will cost you in the form of late fees. Therefore, if using a credit card for expenses sinks you into a deeper financial hole, you’re better off paying with cash until your circumstances change.

Best Practices for Paying Bills with a Credit Card

  • Beware of fees. One of the main reasons companies do not accept credit cards as a form of bill payment is because they do not want to be charged interchange fees. Those who do accept cards may still avoid the fees by passing them to you, the customer. If you don’t wish to be charged extra, try to use your card for bill payments that won’t include extra fees.
  • Use a third-party service if you can’t use a credit card directly. There is an alternative way to use your credit card to pay bills for companies that don’t accept that payment form. Third-party companies like Plastiq and Paytm pay your bills on your behalf and charge the amounts as a purchase to the credit card of your choice. This method works well if you’re set on earning more rewards with your card, but note that such services almost always charge convenience fees of their own.
  • Set up automatic payments. Autopay can be a savior if you’re prone to forgetting due dates. With as many bills automatically paid as possible, you’ll have fewer reminders to set, and you’ll come out winning if there’s some form of incentive for using the feature. You can also contact your providers and ask for your due date to be changed if you need to strategically align them for numerous bills.
  • Always pay your statement balance in full. The most important tip to remember, paying your full statement balance is crucial to maintaining your credit history’s health. Depending on the total amount of bills you choose to pay with your credit card, your card’s balance could spike significantly, so evaluate your other spending habits before making any decisions. If paying by card doesn’t work out, you can always change to another method, but even one mismanaged instance can have lasting repercussions for your financial reputation.

Related Article: What Are the Easiest Credit Cards for Bad Credit to Get?

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