Best Credit Cards for Paying Bills
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Maximizing credit card rewards on utility payments and other recurring bills is a challenge. Most cards don't offer increased rewards for these categories. There are, however, ways to get the most out of these payments. We cover strategies and the best credit cards for paying utilities and other recurring bills in this article.
Best Overall Credit Card for Paying Bills
Chase Freedom Unlimited®—Editor's Choice
Best Overall Card for Cash Back on Bills
Why it made our list
The Chase Freedom Unlimited® earns the top spot for bill paying (and just about any other cash back needs) for one key reason. SPECIAL OFFER: Unlimited Matched Cash Back. Chase will automatically match all the cash back you earned at the end of your first year! There is no limit to how much cash back you can earn. This means you'll effectively earn a minimum of 3% (after the match) on all purchases. Certain categories of spending (see below) will earn six to ten percent after the match. Add to that no annual fee, and this card is arguably one of the best cash back cards for any purpose.
What could be better
Frankly, not much. Even after the first-year match expires, the minimum cash back is 1.5%. There are some cards that pay higher base rates, but they don't offer the elevated cash back rewards this card does.
Rewards:
Signup Bonus: SPECIAL OFFER: Unlimited Matched Cash Back. Chase will automatically match all the cash back you earned at the end of your first year! There is no limit to how much cash back you can earn.
APR: 0% intro APR for 15 months on purchases and balance transfers, and then an ongoing rate of 20.49% - 29.24%% variable APR.
Annual Fee: $0
More: Read our review of the Chase Freedom Unlimited®
7 Best Credit Cards for Paying Recurring Bills
Before we get into the list, it should be noted that some companies may not allow you to pay your bills with a credit card. And others may charge a convenience fee for credit card payments, which could outweigh any rewards you may earn.
You’ll want to consider which of your monthly bills you can pay with a credit card (and ideally without a fee), before choosing the right card for you. Here are seven great credit cards to consider for paying bills.
| Card Name | Best For |
|---|---|
| Chase Freedom Unlimited® | Overall bill paying |
| Blue Cash Preferred® Card from American Express | Streaming service bills |
| U.S. Bank Cash+® Visa Signature® Card | Home utility bills |
| Ink Business Cash® Credit Card | Business internet, cable, and phone bills |
| World of Hyatt Credit Card | Gym membership fees |
| Capital One Venture Rewards Credit Card | Earning travel rewards on every bill |
| Bilt World Elite Mastercard® | Paying Rent |
| Wells Fargo Active Cash® Card | Long-term bill paying |
Blue Cash Preferred® Card from American Express
Best For Paying Streaming Service Bills
Why it made our list
Have you already jumped headfirst onto the Disney+ bandwagon? Perhaps you subscribe to multiple streaming services so that you can access your favorite shows.
The Blue Cash Preferred® Card from American Express could reward you handsomely for those streaming subscription fees. It pays a whopping 6% cashback on streaming service bills. The decision becomes easier for the Disney+ Bundle (Disney+, Hulu, ESPN+) with $7/month back in the form of a statement credit after you spend $9.99 or more each month on an eligible subscription with your card. Enrollment required.
But the isn’t a one-trick pony. It offers great rewards in other categories as well.
What could be better
The card does come with an annual fee (see below). In addition, you'll only get 1% cash back for purchases that don't qualify for a special rewards category.
Rewards:
Welcome Offer: Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
APR: 0% intro APR for 12 months on purchases and balance transfers, and then an ongoing rate of 19.24% - 29.99%% variable APR.
Annual Fee: $0 intro annual fee for the first year, then $95.
More: Read our review of the Blue Cash Preferred® Card from American Express.
U.S. Bank Cash+® Visa Signature® Card
Best For Paying Home Utility Bills
Why it made our list
It’s difficult to find a credit card that includes a bonus category for household utility providers. But with the U.S. Bank Cash+® Visa Signature® Card, you could earn 5% cashback on home utility expenses.
With this card, you’re allowed to choose two categories to earn 5% on your first $2,000 in combined purchases. Home utilities are one of the options to choose from. Here are the other categories that are eligible for 5% cashback:
- TV, Internet & Streaming Services
- Fast Food
- Cell Phone Providers
- Department Stores
- Home Utilities
- Select Clothing Stores
- Electronics Stores
- Sporting Goods Stores
- Movie Theaters
- Gyms/Fitness Centers
- Furniture Stores
- Ground Transportation
You’ll notice that other common bills like TV, internet, cell phone, and gym are eligible for the 5% bonus as well. Additionally, cardholders can earn 2% cashback from one everyday category (gas, groceries, or dining out).
What could be better
Once you move beyond the elevated reward categories, you're stuck at the 1% rewards level. For this reason, we'd never make this our only card. It's best paired with a 2% cash back card. In addition, the 5% cash back on utilities is capped at $2,000 per quarter.
Rewards:
Signup Bonus: $200 bonus after spending $1,000 in eligible purchases within the first 120 days of account opening.
Annual Fee: $0
APR: 0% intro APR for 15 billing cycles on purchases and for 15 billing cycles on balance transfers, and then an ongoing rate of 19.49% - 29.74%% variable APR.
More: Read our review of the U.S. Bank Cash+® Visa Signature® Card
Ink Business Cash® Credit Card
Best For Paying Business Internet, Cable, and Phone Bills
Why it made our list
If you own your own business, the Ink Business Cash® Credit Card could be a great way to pay for some of your business expenses. The card pays up to 5% on recurring bills for internet, cable, and phone. If your business is anything like mine, these charges can add up.
What could be better
There are spending caps on some of the elevated rewards. Depending on the size of your business, these caps may or may not matter. In addition, the base rewards tier is just 1%, so this card should be paired with another business credit card that pays a higher base rate.
Rewards:
Signup Bonus: Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
Annual Fee: $0
APR: 0% intro APR for 12 months on purchases, and then an ongoing rate of 18.49% - 24.49%% variable APR.
More: Read our review of the Ink Business Cash® Credit Card.
World of Hyatt Credit Card
Best For Paying Your Gym Membership Fees
Why it made our list
Gym memberships can be expensive. But with the World of Hyatt credit card, you can at least earn some rewards on the money that you’re spending each month on fitness. With this card, you’ll earn 2 points per $1 spent on fitness clubs and gym memberships.
You’ll also earn 2 points on dining, rideshares, taxis, and airline tickets. Plus, you’ll earn up to 9 points per $1 that you spend on purchases at Hyatt hotels.
But one of the best benefits of the World of Hyatt Credit Card may be the free hotel nights that you can earn. You’ll receive one free night at a Category 1-4 hotel on each cardmember anniversary. And you can earn an additional night if you spend at least $15,000 during your anniversary year.
What could be better
The card does charge an annual fee (see below). As such, using it just for rewards from gym membership costs is not money well spent.
Rewards:
Signup Bonus: Get 30,000 Bonus Points after you spend $3,000 on purchases in your first 3 months from account opening. Plus, up to 30,000 More Bonus Points by earning 2 Bonus Points total per $1 spent in the first 6 months from account opening on purchases that normally earn 1 Bonus Point, on up to $15,000 spent.
Annual Fee: $95
APR: 21.49%–28.49% variable APR
More: Read our review of the World of Hyatt Credit Card.
Capital One Venture Rewards Credit Card
Best Flat-Rate Travel Rewards Card
Why it made our list
For those who want a simple, one-card solution and spend their rewards on travel, the Capital One Venture Rewards Credit Card is an excellent option. You earn 2 miles on every purchase. When used for travel, the miles are worth one cent, making this a 2% rewards card. And it's easy to redeem miles for travel on the Capital One website. Plus, you can transfer your points to any of Capital Ones’ 15+ travel partners.
What could be better
The card does come with an annual fee. In addition, miles are worth one cent each only if you use them for travel. If you redeem miles for other purchase types, the value drops by 50%.
Rewards:
Signup Bonus: Enjoy a one-time bonus of 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening
Annual Fee: $95
APR: 19.99% - 29.99% variable APR
More: Read our review of the Capital One Venture Rewards Credit Card.
Bilt World Elite Mastercard®
Best for long-term bill paying
Why it made our list
The Bilt World Elite Mastercard® is the only card we know of where renters can earn cash back on rent. Even if your landlord doesn't accept credit card payments, and most do not, you can charge your rent to this card. Bilt will then send in your payment via check.
What could be better
There is a $100,000 spending cap on the rent cash back, although this won't affect most people. In addition, its base rewards rate is just 1%.
Rewards:
Signup Bonus: None
Annual Fee: $0
APR: 21.49%, 24.49%, or 29.49 variable APR
More: Read our review of the Bilt World Elite Mastercard®.
Wells Fargo Active Cash® Card
Best 2% cash back option
Why it made our list
The Wells Fargo Active Cash® Card is a simple 2% cash back card. While it doesn't offer elevated reward tiers, a 2% base rate is excellent. The card charges no annual fee and comes with a solid signup bonus.
What could be better
There are no elevated rewards. Even so, I think this card is ideal for everyday spending, including recurring bills. You can pair it with other cash back cards that offer higher rewards in categories where you spent a lot of money.
Rewards:
Signup Bonus: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee: $0
APR: 20.24%, 25.24% or 29.99% variable APR
More: Read our review of the Wells Fargo Active Cash® Card.
FAQs
Does paying bills with a credit card hurt your credit score?
As long as you make on-time credit card payments and keep your overall credit utilization rate below 30%, using a credit card to pay your bills shouldn't hurt your credit score. In fact, a positive payment history could help raise your credit over time.
Can you use your credit card to pay utilities?
Yes, most utility companies accept credit card payments. However, some may charge a convenience fee. If your trash, water, or power company does charge a convenience fee, you’ll need to run the numbers to determine if you’d still come out ahead because of the rewards that you’d earn.
Can you pay your mortgage with a credit card?
Unfortunately, most mortgage companies do not accept credit card payments. There are third-party companies, however, that will allow you to pay your mortgage with a credit card in exchange for a fee. These fees will typically exceed what you could earn in credit card rewards. But you could come out ahead if using one of these services would help you reach your card’s sign-up bonus spending requirement.
Can you pay your taxes with a credit card?
Yes, the IRS can accept credit card payments but taxpayers are charged a fee that varies by card processor. Currently, these fees range from 1.85% to 1.98% of the amount paid. There’s also a minimum fee with each processor that ranges from $2.50 to $2.69.
Is paying a bill with a credit card considered a purchase?
Yes, most credit cards will consider any bill payment to be a “purchase” for rewards purposes. This means you’ll at least earn the base rewards rate (typically 1% to 2%) for every bill that you pay with your card. And you may be able to earn much more on bills that are eligible for bonus rewards.
Bottom Line
If you spend a large percentage of your monthly income on one or two particular bills, you may want to apply for a credit card that offers that expense as a bonus category.
However, if your monthly expenses are spread fairly evenly on several types of bills, a flat-rate card may offer the best bang for your buck.
Finally, if you have an unusually large bill coming your way in the near future, you may want to consider one of the best credit card signup bonus deals.
