Is it Worth Paying Your Bills with a Credit Card? The Pros and Cons Explained
Jan 21, 2025
Written by
Written by
Brianna Harrison (Credit Card & Travel Writer)
Brianna Harrison (Credit Card & Travel Writer)
Table of contents
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Title
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Paying bills with a credit card can be a game-changer for your finances, as you can earn rewards, track your spending, and even boost your credit score. But is it right for you?
In this guide, we’ll break down the pros and cons, show you how Chexy Wallet simplifies bill payments, and help you decide if paying bills with a credit card fits your financial goals.
How to Pay Bills with a Credit Card Online
Some bill payment providers, like cell phone and internet companies, allow you to pay with a credit card. However, not all do.
Introducing Chexy–the game changer. With Chexy Wallet, you can pay a wide range of bills using your credit card and earn rewards—all through a single dashboard, simplifying expense tracking and managing due dates.
Here are some examples of bills you can pay with your credit card through Chexy Wallet:
Internet
Phone plan
Tuition fees
Gym membership
Streaming services
Car lease
Daycare expenses
Strata or condo fees
Locker rentals
Check out our top picks for the best credit cards to pay bills.
What Bills Can You Not Pay with a Credit Card?
The only bills you cannot pay with your credit card are mortgage and loan payments; however, we are working to make this happen!
Another thing to note: Currently, Chexy Wallet only supports one credit card for all your bills, and you must be an active rent-paying user.
Can You Pay Rent with a Credit Card?
Yes, you can pay your rent with a credit card via Chexy! You can use your credit card to pay rent, earn rewards, build credit, split rent with roommates, and more.
View a detailed guide on how to pay your rent with a credit card here.
Is It Worth Paying Bills with Credit Cards?
Yes, paying bills with a credit card is worth it because you can…
Earn Rewards
Many credit cards offer rewards like points, cashback, or other benefits for your spending. The more you charge to your credit card, the more rewards you can earn.
Here’s a real-life example of how much cash back you can earn with Chexy using the TD Cash Back Visa Infinite Card, which earns you 3% cash back on regular recurring bill payments (including rent!).
Let’s say your monthly bills total $1,675 per month ($1,500 for rent, $100 for internet, and $75 for your cell phone plan). After Chexy fees, you’ll earn $20.94 monthly or $251.28 yearly.
Using a rewards credit card that offers points or cashback for each transaction can bring you closer to perks like free flights, hotel stays, and other benefits.
Qualify for Welcome Bonuses Faster
Most credit cards have a welcome bonus, where you can earn cashback or points just by spending a certain amount in the first few months of having the card. For example, the Platinum Card by American Express offers 100,000 welcome bonus points for spending $10,000 in the first three months of card membership.
If your usual credit card spending doesn’t reach the requirement (which can be upwards of a few thousand dollars), using your credit card to pay your rent and recurring bills can help you qualify for the bonus.
Build Credit
Using your credit card to pay recurring bills and paying off the balance in full each month can help boost your credit score over time. Credit bureaus view consistent, responsible credit card usage positively, which helps you build credit without taking on unnecessary debt.
Another effective way to strengthen your credit is by reporting your rent payments to the credit bureaus. This adds more data to your credit profile and improves your credit score.
Chexy’s Credit Builder feature makes this process seamless by automatically reporting your rent payments to Equifax. This improves your credit mix and highlights your history of timely payments—both important factors in maintaining a strong credit score.
Ensure On-Time Payments
Setting up recurring payments on your credit card is a simple way to stay organized. Once set up, your card will be automatically charged monthly, ensuring your bills are paid on time.
When paying your rent and bills with Chexy, payments are processed three business days before the due date, and the payee or your landlord receives the funds right on time. Say goodbye to missed payments and overdue rent!
Easily Track Your Expenses
By using one credit card for your recurring bills, you can track all your transactions in one place. This streamlined view of your spending can make budgeting and monitoring expenses much more convenient.
Should I Pay All My Bills with a Credit Card?
In general, you should pay most of your bills with a credit card. However, here are a few things to watch out for:
Know the Credit Card Terms: Some credit cards may treat recurring bills as cash advances or charge additional fees. Ensure the rewards you earn outweigh any potential costs.
Avoid Debt: Only use a credit card for bills if you’re confident you can pay the balance in full each month. If you’re prone to overspending or your bank account balance fluctuates, it’s better to avoid potential interest charges and not pay bills with your credit card.
Check for Additional Charges: Confirm that your bill providers won’t charge extra fees for credit card payments, as this could offset your rewards. With Chexy Wallet, you’ll pay an additional 1.75% on top of the bill cost. Ensure you earn more than 1.75% to benefit from paying your bills with a credit card.
Get started with Chexy today to pay your rent and bills with your credit card, earn rewards, and build credit.
Subscribe to our newsletter below for up-to-date credit card, travel, and rental content.
FAQs
Does paying bills with a credit card build credit?
You can build credit by using your credit card to pay bills if you pay your bills on time and pay off your credit card balance in full every month. Using a credit card to pay bills also diversifies the types of credit accounts on your report, boosting your score.
Is paying bills with a credit card considered a cash advance?
It depends on your credit card company. For example, RBC and Scotiabank treat bill payments as cash advances. However, paying bills with Chexy Wallet does not count as a cash advance, and you won’t pay any additional fees.
Can you pay the CRA with a credit card?
You cannot use Interac debit or credit cards to pay the CRA. Chexy also does not support payments to CRA's My Payment service.
Paying bills with a credit card can be a game-changer for your finances, as you can earn rewards, track your spending, and even boost your credit score. But is it right for you?
In this guide, we’ll break down the pros and cons, show you how Chexy Wallet simplifies bill payments, and help you decide if paying bills with a credit card fits your financial goals.
How to Pay Bills with a Credit Card Online
Some bill payment providers, like cell phone and internet companies, allow you to pay with a credit card. However, not all do.
Introducing Chexy–the game changer. With Chexy Wallet, you can pay a wide range of bills using your credit card and earn rewards—all through a single dashboard, simplifying expense tracking and managing due dates.
Here are some examples of bills you can pay with your credit card through Chexy Wallet:
Internet
Phone plan
Tuition fees
Gym membership
Streaming services
Car lease
Daycare expenses
Strata or condo fees
Locker rentals
Check out our top picks for the best credit cards to pay bills.
What Bills Can You Not Pay with a Credit Card?
The only bills you cannot pay with your credit card are mortgage and loan payments; however, we are working to make this happen!
Another thing to note: Currently, Chexy Wallet only supports one credit card for all your bills, and you must be an active rent-paying user.
Can You Pay Rent with a Credit Card?
Yes, you can pay your rent with a credit card via Chexy! You can use your credit card to pay rent, earn rewards, build credit, split rent with roommates, and more.
View a detailed guide on how to pay your rent with a credit card here.
Is It Worth Paying Bills with Credit Cards?
Yes, paying bills with a credit card is worth it because you can…
Earn Rewards
Many credit cards offer rewards like points, cashback, or other benefits for your spending. The more you charge to your credit card, the more rewards you can earn.
Here’s a real-life example of how much cash back you can earn with Chexy using the TD Cash Back Visa Infinite Card, which earns you 3% cash back on regular recurring bill payments (including rent!).
Let’s say your monthly bills total $1,675 per month ($1,500 for rent, $100 for internet, and $75 for your cell phone plan). After Chexy fees, you’ll earn $20.94 monthly or $251.28 yearly.
Using a rewards credit card that offers points or cashback for each transaction can bring you closer to perks like free flights, hotel stays, and other benefits.
Qualify for Welcome Bonuses Faster
Most credit cards have a welcome bonus, where you can earn cashback or points just by spending a certain amount in the first few months of having the card. For example, the Platinum Card by American Express offers 100,000 welcome bonus points for spending $10,000 in the first three months of card membership.
If your usual credit card spending doesn’t reach the requirement (which can be upwards of a few thousand dollars), using your credit card to pay your rent and recurring bills can help you qualify for the bonus.
Build Credit
Using your credit card to pay recurring bills and paying off the balance in full each month can help boost your credit score over time. Credit bureaus view consistent, responsible credit card usage positively, which helps you build credit without taking on unnecessary debt.
Another effective way to strengthen your credit is by reporting your rent payments to the credit bureaus. This adds more data to your credit profile and improves your credit score.
Chexy’s Credit Builder feature makes this process seamless by automatically reporting your rent payments to Equifax. This improves your credit mix and highlights your history of timely payments—both important factors in maintaining a strong credit score.
Ensure On-Time Payments
Setting up recurring payments on your credit card is a simple way to stay organized. Once set up, your card will be automatically charged monthly, ensuring your bills are paid on time.
When paying your rent and bills with Chexy, payments are processed three business days before the due date, and the payee or your landlord receives the funds right on time. Say goodbye to missed payments and overdue rent!
Easily Track Your Expenses
By using one credit card for your recurring bills, you can track all your transactions in one place. This streamlined view of your spending can make budgeting and monitoring expenses much more convenient.
Should I Pay All My Bills with a Credit Card?
In general, you should pay most of your bills with a credit card. However, here are a few things to watch out for:
Know the Credit Card Terms: Some credit cards may treat recurring bills as cash advances or charge additional fees. Ensure the rewards you earn outweigh any potential costs.
Avoid Debt: Only use a credit card for bills if you’re confident you can pay the balance in full each month. If you’re prone to overspending or your bank account balance fluctuates, it’s better to avoid potential interest charges and not pay bills with your credit card.
Check for Additional Charges: Confirm that your bill providers won’t charge extra fees for credit card payments, as this could offset your rewards. With Chexy Wallet, you’ll pay an additional 1.75% on top of the bill cost. Ensure you earn more than 1.75% to benefit from paying your bills with a credit card.
Get started with Chexy today to pay your rent and bills with your credit card, earn rewards, and build credit.
Subscribe to our newsletter below for up-to-date credit card, travel, and rental content.
FAQs
Does paying bills with a credit card build credit?
You can build credit by using your credit card to pay bills if you pay your bills on time and pay off your credit card balance in full every month. Using a credit card to pay bills also diversifies the types of credit accounts on your report, boosting your score.
Is paying bills with a credit card considered a cash advance?
It depends on your credit card company. For example, RBC and Scotiabank treat bill payments as cash advances. However, paying bills with Chexy Wallet does not count as a cash advance, and you won’t pay any additional fees.
Can you pay the CRA with a credit card?
You cannot use Interac debit or credit cards to pay the CRA. Chexy also does not support payments to CRA's My Payment service.