Here's When you should Pay your Bills Using Credit Card

Credit card companies run several offers by providing reward points and cardholders can make use of these to obtain lucrative returns. Very often cardholders are stuck in the dilemma and are unable to decide what payments should be done using the credit card. To extract the maximum benefit out of credit cards one needs to learn at what places should credit cards be actually used.

Irresponsible use of credit cards can lead to a poor credit score, accumulation of debt, and various other issues that you don’t want to get it. Therefore, to clear your doubts and to make sure that you can extract maximum benefit out of your credit card. In this thread, we will tell you when should you pay your bills using a credit card.

Scenarios when you should Use Your Credit Cards to Pay Bills

There are multiple scenarios where one can use their credit cards to pay the bill, here’s a rundown-

Autopay your Bills Every Month

Probably one of the biggest benefits of using credit cards is that one can set-up an autopay option while making payments. If you are not good at remembering dates and often forget your outstanding payments, you can use your credit card to schedule your monthly payments. These payments will be auto-debited from your card and you will be notified via email and SMS. Using credit cards to auto-pay monthly bills not only saves time but also reduces the hassle of making the payments.

In order to activate the auto-debit service, you will have to enter your personal details once which can be saved for future use. From the next month onwards, cardholders need not go to the billing section to make the payments, instead, the amount will be auto-debited from their credit card.

Earning Rewards

If you are a big fan of earning credit card points and rewards you can definitely consider paying your bills using a credit card. When an individual uses credit cards to make payments for their bills there is a high probability that they get the chance to win cashback, discounts, or any other ongoing offer that is valid over the payment.

In case your credit card provider runs a huge reward program you should make payments using the card as it will accrue credit points which can be later redeemed to make purchases. Apart from cashback and reward points, a large variety of credit cards offer Airmiles which can be collected and redeemed to book flight tickets. Very often card users get an instant discount or a small cashback since they’ve made the transaction using their credit card.

Keeping a Track of your Spending

Credit cards are marvelous tools when it comes to tracking one’s spending. All the transactions made on the credit card are printed on the credit card statement which allows all the users to keep a track of their spending and expenditure. Very often people using cash for making transactions lose track of their expenditure and tend to spend more than they are supposed. On the other hand in case of credit cards making payments allows users to keep a systematic track of budget which helps to manage finances in an efficient way.

When not using Cheques for Making Payments

The conventional and traditional methods of making bill payments revolved around either cheques or cash. However, with economies and countries inkling more and more towards digital forms of payments using credit cards is recommended. When a user makes his/her bill payments using a credit card in they not only manage to complete the transaction quickly but also get some extra rewards, cashback or discounts which is not in the case of cheques.

Customer Protection

A wide variety of credit card companies offer customer protection plans. These benefits include travel insurance, zero liability in case of frauds, purchase protection, extended warranties, etc. All of the benefits are available free of cost and credit card users can get these additional benefits. Furthermore, if you book your ticket using your credit card, in most cases your travel is insured by the company. Typically, cardholders are entitled to get personal accidental coverage and travel insurance on most of the credit cards in India.

In a Nutshell

Credit cards are undoubted, the modern-day financial marvel that has managed to make their way in every pocket all across the globe. When an individual is paying bills using credit cards they can do it faster and earn rewards.