By admin 
Whether or not you are attempting to achieve the minimal spending requirement for a welcome offer or just racking up miles to your subsequent award journey, placing on a regular basis bills on a bank card can unlock severe worth.
No factors and miles fanatic desires to depart potential rewards or cash back on the desk, however earlier than you begin swiping for each invoice, it is essential to comply with the golden rule of bank card use: all the time pay your steadiness in full and on time. Doing so helps you keep away from curiosity fees, shield your credit score rating and even earn bank card rewards.
Whereas utilizing a rewards bank card for recurring payments and different bills can repay, not each transaction is value charging, even should you’re a accountable cardholder.
This is the way to determine which payments make sense to pay with a bank card — and when it is higher to maintain that card in your pockets.
Associated: TPG’s 10 commandments of credit cards
Methods to determine whether or not to pay a invoice with a bank card
Are you able to repay the complete steadiness?
Should you cost greater than you may afford to repay by your due date, you could possibly face steep curiosity fees. Actually, the typical APR on interest-accruing bank cards was over 21% in Q2 2025, in response to the Federal Reserve.
That is why it is essential to know your credit card’s APR — particularly should you have a tendency to hold a steadiness.
Even should you reap the benefits of a 0% APR offer, carrying a steadiness from month to month can have drawbacks. Bank card debt can price you cash in hidden ways, together with the truth that the next credit card utilization rate may hurt your credit score rating.
Usually, it is best to solely use your bank card just for payments and purchases you are assured you may repay in full by the subsequent due date.
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Are there charges for utilizing your bank card?
Earlier than coming into your bank card particulars to pay a invoice, examine whether or not the service provider or service supplier fees a surcharge.
As a consequence of bank interchange fees (charged by banks), landlords, utility firms and different service suppliers usually cross these prices on to prospects who pay by bank card.
In some instances, you could possibly sidestep surcharges by utilizing various choices. For instance, the Bilt Mastercard®* helps you to pay rent with a credit card with out transaction charges (see rates and fees).
*TPG founder Brian Kelly is a Bilt advisor and investor.
With regards to retailers or service suppliers, you may also contemplate switching to a card that does not tack on further charges for bank card funds.
Nevertheless, generally, there is not any avoiding the surcharge — except you employ a special cost technique. In these instances, it is value doing the math to determine whether or not the rewards you may earn outweigh the added price.
TPG’s monthly points and miles valuations might help you crunch the numbers. And should you’re attempting to satisfy a welcome provide’s minimum spend or earn bonus rewards in a particular spending class, these further factors, miles or money again may tip the steadiness in your favor.
Is fraud or buy safety vital for this transaction?
One main good thing about utilizing a bank card is the added safety it gives in comparison with debit playing cards, money or checks. As an example, in case your debit card is used fraudulently, your legal responsibility might be greater. However with a bank card, the Fair Credit Billing Act (FCBA) means that you can dispute fees for issues like billing errors, undelivered items and providers and extra.
Many bank cards additionally provide purchase protection, which might reimburse you if an eligible merchandise is broken or stolen shortly after it has been bought, assuming you paid with a card that provides this profit. Some even embrace extended warranty benefits, including further peace of thoughts if one thing breaks after the producer’s guarantee expires.
Backside line
Some expenses are better left off your credit card — particularly if you cannot pay your full steadiness every month and danger racking up high-interest fees. In that case, it could be sensible to pause bank card spending till you’ve got paid down your debt and created a plan to keep away from overspending.
However when used responsibly, bank cards could be a sensible cost technique — notably when you may pay the steadiness in full and keep away from surcharges. Even when a price applies, the rewards or advantages you earn may nonetheless make it value it, relying on how the maths works out.
Associated: 13 expenses that you should not put on your credit card
See Bilt Mastercard charges and charges here.
See Bilt Mastercard rewards and advantages here.