Most bills can be paid with a credit card, but not all merchants accept them, and some charge a fee that wipes out your rewards
You can pay utilities, insurance, phone bills, subscriptions, and property taxes with a credit card at most companies. What matters is whether the biller accepts credit cards and whether they charge a convenience fee for doing so. Some billers — particularly government agencies and utility companies — accept credit cards but add a 2 to 3 percent fee to cover their processing costs. That fee often exceeds any cash back or points you would earn, making the card payment a net loss.
The real decision is not whether you can pay, but whether you should. A credit card payment builds your payment history and can help your credit score if you pay the full balance on time. It also gives you a record of the transaction and dispute protection if something goes wrong. But if the biller charges a fee and you carry a balance, you are paying interest on top of the fee — a costly combination.
Key Takeaways
- Utilities, insurance premiums, property taxes, phone bills, and most subscriptions accept credit card payments, but many add a 2 to 3 percent convenience fee.
- A convenience fee often cancels out any rewards you earn, so compare the fee against your card's cash back or points before paying.
- Government agencies and property tax collectors almost always charge a fee; utility companies vary by region and company.
- Paying your full balance on time each month builds your credit score and avoids interest charges that would compound the cost of any fee.
- Some billers offer discounts for paying by bank transfer or check instead of credit card, so ask before you assume the card is your best option.
Utilities and energy bills
Most electric, gas, and water companies accept credit card payments through their website or phone line. However, many charge a convenience fee of 2 to 3 percent of your bill. On a $150 electric bill, that is $3 to $4.50 added to what you owe. If your credit card offers 1 percent cash back, you earn $1.50 and lose money on the deal.
Some utility companies offer a small discount — usually 0.5 to 1 percent — if you pay by bank transfer or automatic debit from your checking account instead. Call your utility directly or check their website to see what payment methods they offer and whether any carry a fee. Regional utilities vary widely, so the answer for your electric company may differ from your neighbor's.
Insurance premiums
Auto, home, and renters insurance companies almost always accept credit card payments, and most do not charge a convenience fee. This makes insurance one of the best uses for a rewards credit card, since you are paying a large bill regularly with no extra cost. A $1,200 annual auto insurance premium paid with a 2 percent cash back card earns you $24 with no fee attached.
Health insurance premiums paid through your employer are typically deducted from your paycheck, so you cannot use a credit card. If you buy health insurance through the marketplace or pay for it yourself, you can usually pay by credit card through the insurer's website, again with no fee. Life insurance and umbrella policies also accept credit cards without charging extra.
Property taxes and government fees
County assessors, city tax collectors, and most government agencies accept credit card payments for property taxes, vehicle registration, business licenses, and court fees. Nearly all of them charge a convenience fee of 2 to 4 percent because they use a third-party payment processor. On a $3,000 property tax bill, a 3 percent fee costs $90 — far more than any rewards you would earn.
Some jurisdictions offer a discount if you pay by check or bank transfer instead. Before you use a credit card for a large government payment, contact the tax collector's office or check their website to see whether a lower-cost payment method exists. The fee structure varies by county and municipality, so what applies to your property taxes may not explore to your vehicle registration.
Phone, internet, and subscription services
Mobile carriers, internet providers, and streaming services almost universally accept credit card payments with no convenience fee. These are recurring bills, so paying with a rewards card adds up over time. A $100 monthly phone bill paid with a 2 percent cash back card earns $24 per year at no extra cost.
Many of these services offer autopay discounts — typically $5 to $10 per month — if you enroll in automatic payments from a bank account. Compare the discount against the rewards you would earn with a credit card. If your card offers 2 percent cash back, $100 per month equals $24 per year in rewards; a $5 monthly autopay discount equals $60 per year. In this case, the autopay discount wins, even though it requires a bank account connection.
Medical and dental bills
Hospitals, doctors' offices, and dental practices increasingly accept credit card payments, though some still prefer checks or bank transfers. Most do not charge a convenience fee for credit card use. If your provider accepts credit cards, paying with a rewards card is a way to earn cash back on an expense you have to pay anyway.
Some medical providers offer payment plans through third-party financing companies like CareCredit, which function like credit cards but are separate from your regular card. These plans often offer zero-interest periods if you pay within a set timeframe, but charge high interest rates if you do not. Read the terms carefully before enrolling, and use your regular rewards credit card if the provider accepts it and charges no fee.
Rent and mortgage payments
Most landlords and mortgage servicers do not accept credit card payments directly. Those that do almost always charge a convenience fee of 2 to 3 percent or higher, making the cost prohibitive on a large monthly payment. A $1,500 rent payment with a 3 percent fee costs $45 — much more than any rewards.
Some third-party payment platforms like Plastiq allow you to pay rent or mortgage with a credit card, but they charge a fee (typically 2.5 percent) that you pay directly. The only scenario where this makes sense is if you are trying to reach a credit card spending threshold for a sign-up bonus, and even then you should calculate whether the bonus exceeds the fee.
When a convenience fee makes sense
A convenience fee is worth paying only in specific situations. If you are working toward a credit card sign-up bonus that requires $5,000 in spending within three months, paying bills with a fee might help you reach that threshold faster. A $5,000 bonus is often worth more than the fees you would pay on $2,000 to $3,000 in bill payments.
Another scenario is building credit history. If you have no credit or are rebuilding after missed payments, paying bills on time with a credit card and paying the full balance each month helps your credit score. The fee is a cost of that improvement, similar to paying interest on a credit-building loan. Once your score improves, you can shift to lower-cost payment methods.
Outside these situations, avoid convenience fees. Use your credit card for bills that do not charge a fee — insurance, subscriptions, phone service — and pay utilities and taxes by bank transfer or check.
Frequently Asked Questions
Does paying bills with a credit card hurt my credit score?
No. Paying bills on time with a credit card helps your payment history, which is 35 percent of your credit score. Paying the full balance each month also keeps your credit utilization low, which helps your score. The only way a credit card payment hurts your score is if you miss the payment or carry a high balance.
Can I pay my mortgage with a credit card?
Most mortgage servicers do not accept credit cards directly. Some third-party platforms allow it, but they charge a 2 to 3 percent fee that you pay. On a $1,500 mortgage payment, that fee is $30 to $45 — more than any rewards you would earn. It only makes sense if you are chasing a sign-up bonus.
What if a biller says they don't accept credit cards?
Ask whether they accept payment through a third-party platform or payment processor. Some billers do not accept cards directly but allow them through their online payment portal. If they truly do not accept credit cards, you can use a service like Plastiq to pay by card, though you will pay a fee for the service.
Should I use a credit card or bank transfer to pay my bills?
Use a credit card if there is no convenience fee and your card offers rewards. Use a bank transfer if the biller charges a fee for credit cards or offers a discount for bank transfers. Bank transfers are also faster for time-sensitive payments and do not affect your credit utilization.
Do I earn rewards on convenience fees?
Yes, most credit cards count the full transaction amount — including the fee — toward your rewards. However, the rewards you earn are usually less than the fee itself. On a $150 bill with a $3 fee, a 1 percent cash back card earns $1.53 total but costs you $3, for a net loss of $1.47.