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Should You Pay Bills With A Credit Card?

Paying with a credit card is an excellent way to strengthen your credit score and access beneficial rewards. Plus, purchases are quick and convenient. In 2021, over 58,900,000 UK residents used a credit card, but should you be paying bills with a credit card?

Today, we are looking at the benefits and drawbacks of paying bills with a credit card to help you decide if this is the route for you. Scroll down to learn more.

Benefits of Paying Bills With a Credit Card

There are numerous benefits and reasons to use your credit card to pay bills. These handy cards are advantageous for various reasons, from keeping your credit card active to ensuring on-time bill payments. Here are the top credit card benefits:

Is It Safer To Pay Bills With a Credit Card or Debit Card?

You can use both credit and debit cards to cover your bills, and there is no right answer for everyone.

However, when it comes to paying bills in the UK, a credit card often offers more protection against fraud than debit cards. This is because credit cards are not linked to the full balance in your bank account, but are a line of credit offering you access to a specific credit limit instead. Using a credit card is something to consider if you want to protect your financial details.

Which Bills Can You Pay With a Credit Card?

If you are looking for a good way to pay bills, using a credit card can help (as long as you keep up with repayments). Here are some of the bills you can pay with a credit card.

What Should You Not Pay With a Credit Card?

You can’t pay your rent, mortgage, car payments or student loans with a credit card.

Larger purchases can also wipe out your credit. After a large purchase, you will still have to pay off the amount, often with higher interest fees. Never borrow more than you can afford; always make timely payments to avoid weakening your credit score.

Is It Better To Pay Everything With a Credit Card?

Using a credit card responsibly can benefit your credit score, protect you against fraud, give you rewards, help you track your spending and provide better buyer protection. Therefore, if you can make full monthly repayments and are not in credit card debt, using a credit card frequently is a good idea.

However, if you cannot repay your total balance every month, using a credit card to make everyday purchases or pay regular bills might not be the best solution for you.

More Information

Credit Line vs Credit Cards

What are credit lines used for?

Credit cards

Check out our other great content in our Info Hub, with articles about the different types of credit products, money management tips and help with saving money!