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How To Save Money On Utility Bills With A Credit Card

How To Save Money On Utility Bills With A Credit Card

Save Money On Utilities By Being Credit Smart

Everyone wants to save their money. Different people use different hacks in order to save their money for future. By saving money, we do not mean that you do not even spend on necessities, but it means to carefully spend on luxuries and cut down your spending wherever possible. It means to reduce your expenses, so that you can put away more money every month.

There are a lot of different ways to save your money. One of the major ones among them is to use credit cards. With the help of credit cards, you can save money since they offer a lot of rewards and benefits in the form of reward points and discounts. You can use these reward points and discounts to make your purchases, get free airline miles, or to pay your utility bills. Yes, you can even pay your utility bills with your credit card loyalty points.

One of the most stunning cards for utility savings is the Standard Chartered Titanium which offers 5% cash back on all utility payments! This is effectively a permanent 5% discount on top of any other money savings methods you may use. Highly recommended.

You cannot ignore your utility bills. These include the bills of necessary items and services in your home, such as phone, internet, cable, water, electricity, gas, etc. These bills are a part of every home. However, now you can add your regular savings by paying such utility bills with your credit card reward points. So, you must be eager to know as to what all utility bills you can pay with your loyalty points. Let me tell you that you can pay your phone, internet, and television bills with your reward points.

How to use credit card points to pay your utility bills
  • First of all, when it comes to paying your utility bills with your credit card, you must know that you should not pay them directly. Instead, you should make use of a mobile wallet. You can use Freecharge or PayTm for this, since these mobile wallets provide great offers on bill and mobile recharge payments and have a simple user interface.
  • Then, at the beginning of every month, you must add money into any one of these mobile wallets or both of them. You can get American Express Gold Charge credit card in order to save more. This credit card offers 1,000 bonus reward points, when you make 4 transactions of Rs. 1,000 each with it.
  • Make sure that you add money to your mobile wallet in blocks of Rs. 1,000 only. For instance, if you have registered on both the mobile wallets, then you can add Rs. 1,000 three times into PayTm and Rs. 1,000 one time in Freecharge.
  • Although, the offers on both these mobile wallets change from time to time, generally users can earn 2% cash back on their bill and mobile recharge payments.
  • This way you get to save Rs. 400 every month through 1,000 bonus reward points on your Amex credit card. You can even redeem these reward points for Indigo flight tickets. Plus, you save 2% every month, which you get in the form of cash back from using these mobile wallets.
Things To Know

However, some credit card companies may charge some convenience fees for payments done through their credit cards. In order, to be sure if your credit card charges such fees, you must read the fine print on the agreement of your card. If your credit card does not charge any convenience fees, then it is a good idea to pay your utility bills using your credit card. Otherwise, you can use a debit card, bank transfer, or cash to pay your bills.

Nevertheless, you should only use your credit card for paying your utility bills, if you can handle your finances properly. You must pay off the entire balance on your credit card every month, if you do not want to pay interest on your bills that you have already paid.

Viveka Rao

About Viveka Rao

Viveka Rao is post grad in finance and a freelance writer here at CreditSmart. A love for shopping and travel rewards has fueled her interest in personal credit, and making the most of rewards programs. She writes to educate other consumers in making great financial choices.

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