Our Two Cents

Credit cards have changed the way we make payments: with just a quick tap or swipe, you can instantly complete a transaction. Cards can also be used for recurring expenses like utilities, insurance, or subscription services.

It might seem like a no-brainer to put bills on a credit card, but make sure you understand the pros and cons.

Advantages

• Automatic payments: Nobody wants to miss a due date on anything, much less a bill. Scheduling automatic payments with a credit card lets you “set it and forget it.” And when you make automatic payments with plastic, there's no need to write checks, find a stamp, or log into your online bill payment system.
• Card rewards: Rewards are often a primary motivation to pay bills with a credit card. Take a look at Chief’s credit card options: they offer both reward points for you and a chance to donate to nonprofit organizations!
• Built-in budgeting: Since many people carry card debt, you may be hesitant to increase your card usage. However, credit cards can be a great budgeting tool if you use them the right way. Your card issuer creates an electronic record of every transaction, making it simple to track your spending. 

Disadvantages

• Fees: In most cases, there are no additional fees when using a credit card to pay monthly bills. However, some businesses charge a convenience fee when you use a credit card. If you keep a credit card, you may also pay an annual fee to your card issuer. Make sure your card benefits outweigh your card costs.
• Debt: If you don’t pay off your card’s full balance each month, debt creeps up fast and may throw you in a hole that’s hard to escape.
• Lower credit score: Your credit score will be higher if you keep your credit line balances low (less than 30% utilization). Switching multiple bills onto your card may cause your score to dip.

Bottom Line

Paying bills via credit card isn’t for everyone. The rewards and the added convenience of cards are great—if you’re able to take advantage of them without experiencing the negatives.