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-   -   Using Credit Card for Bill Payments (https://britishexpats.com/forum/usa-57/using-credit-card-bill-payments-727381/)

mattw89 Aug 4th 2011 2:37 am

Using Credit Card for Bill Payments
 
Hey Everyone,

So I got my greencard and SSN.

I also got accepted for an average rating credit card with Capital One, it was one specifically designed for New Immigrants.

So many threads on building credit...

One thing I wondered, is whether I could use my credit card to pay monthly bills such as Comcast internet and gym? I will pay off the total each month which I know may not be the best strategy out of them all for building credit, but should help nevertheless than just going out of checking.

Is this Ok or is there added charges when using CCs for reoccuring bills?

I also have to generate a cheque each month from checking to pay for rent, if i had enough to pay this with my CC limit i'd also like to pay the rent on my CC also, but i guess that isnt possible. We can send it online to landlord but that costs 40 bucks...

If you all advise against all of this i'll just use the CC for groceries and purchases.

Thanks

lansbury Aug 4th 2011 3:58 am

Re: Using Credit Card for Bill Payments
 
I have a couple bill payments on my cards and don't pay a charge for that. One thing is do not use the card upto it's limit, even if you pay it each month. One of the criteria for working out you credit score is percentage of outstanding balance to available limits.

cranston Aug 4th 2011 4:13 am

Re: Using Credit Card for Bill Payments
 
Long term you would probably be better of getting a secured CC with BofA then Cap One.

Sue76 Aug 4th 2011 4:00 pm

Re: Using Credit Card for Bill Payments
 
Yes, you can pay most bills online or over the phone with a credit card or you can set it to debit your bank account. Careful though, many companies charge a fee for paying over the phone, so I always paid online--utilities (water, electric), credit cards (debit your bank account), phone, internet, cable...My gym required me to pay by credit card when I signed up (Gold's Gym). Each month the gym membership was automatically charged to my card.

But take the advice of the other poster about trying not to charge your card to the limit. I don't know what the ratio is, but someone told me it's best to keep your balance below 50% of the limit. The most important thing is just never be late in paying your bills! I have so much charged to my credit cards as a result of mostly living off my credit cards as a student, but I have a great credit rating b/c I always paid my bills on time.

sir_eccles Aug 4th 2011 4:06 pm

Re: Using Credit Card for Bill Payments
 
It can vary by company. Some utilities you go to their website to pay by credit card and they say there is a fee to pay by credit card. But you got to your bank website and set up billpay and it can be free. Not all credit cards let you pay bills from the credit card website.

Anian Aug 4th 2011 6:15 pm

Re: Using Credit Card for Bill Payments
 
Concur with Sir Eccles. Some I can pay via credit card for free, others charge me. Some checking accounts will also charge you for paying via billpay.

I pay for most thing via credit card because it gives me cash back (a tiny amount, but it paid for a short vacation this year). They keep upping my limit every year but I never get close to it and always pay off the monthly bill.

tonrob Aug 4th 2011 10:28 pm

Re: Using Credit Card for Bill Payments
 
Comcast was mentioned - they don't charge.

OP - also there would be no advantage whatsoever to carrying a balance so don't worry about that.

As for amount of limit to spend - popular opinion on these boards in the past is aim for approx 33% each month.

BTW - re vacation example - long term you'll often get better bang for your buck acquiring cards that give air miles or hotel points rather than cash back cards.


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