Whether or not you are attempting to achieve the minimal spending requirement for a welcome supply 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 needs to go away potential rewards or money again 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: at all times pay your steadiness in full and on time. Doing so helps you keep away from curiosity costs, defend 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 for those who’re a accountable cardholder.
Here is methods to resolve 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 bank cards
The way to resolve whether or not to pay a invoice with a bank card
Are you able to repay the complete steadiness?
When you cost greater than you’ll be able to afford to repay by your due date, you may face steep curiosity costs. In truth, the common APR on interest-accruing bank cards was over 21% in Q2 2025, in accordance with the Federal Reserve.
That is why it is essential to know your bank card’s APR — particularly for those who have a tendency to hold a steadiness.
Even for those who make the most of a 0% APR supply, carrying a steadiness from month to month can have drawbacks. Bank card debt can value you cash in hidden methods, together with the truth that a better bank card utilization fee might hurt your credit score rating.
Normally, it is best to solely use your bank card just for payments and purchases you are assured you’ll be able to repay in full by the subsequent due date.
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Are there charges for utilizing your bank card?
Earlier than getting into your bank card particulars to pay a invoice, verify whether or not the service provider or service supplier costs a surcharge.
Because of financial institution interchange charges (charged by banks), landlords, utility firms and different service suppliers usually move these prices on to prospects who pay by bank card.
In some instances, you might be able to sidestep surcharges by utilizing various choices. For instance, the Bilt Mastercard®* enables you to pay hire with a bank card with out transaction charges (see charges and costs).
*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, typically, there is no avoiding the surcharge — except you employ a distinct cost technique. In these instances, it is value doing the maths to resolve whether or not the rewards you may earn outweigh the added value.
TPG’s month-to-month factors and miles valuations may also help you crunch the numbers. And for those who’re attempting to satisfy a welcome supply’s minimal spend or earn bonus rewards in a particular spending class, these further factors, miles or money again might tip the steadiness in your favor.
Is fraud or buy safety necessary for this transaction?
One main advantage of utilizing a bank card is the added safety it provides in comparison with debit playing cards, money or checks. As an example, in case your debit card is used fraudulently, your legal responsibility may very well be increased. However with a bank card, the Honest Credit score Billing Act (FCBA) lets you dispute costs for issues like billing errors, undelivered items and companies and extra.
Many bank cards additionally supply buy safety, which may 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 prolonged guarantee advantages, including further peace of thoughts if one thing breaks after the producer’s guarantee expires.
Backside line
Some bills are higher left off your bank card — particularly if you cannot pay your full steadiness every month and threat racking up high-interest costs. In that case, it might be clever 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 generally is a good cost technique — notably when you’ll be able to 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 bills that you shouldn’t put in your bank card
See Bilt Mastercard charges and costs right here.
See Bilt Mastercard rewards and advantages right here.
