“How to Pay Utility Bills with a Credit Card and Boost Your Credit Score”

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Paying Utility Bills with a Credit Card: A Comprehensive Guide

At O1ne Mortgage, we prioritize consumer credit and finance education. This post aims to provide an objective view to help you make the best decisions regarding paying utility bills with a credit card. For any mortgage service needs, call us at 213-732-3074.

What Utilities Can You Pay With a Credit Card?

Depending on your utility provider, you can usually pay the following utility bills with a credit card:

• Phone or cellphone bill
• Internet bill
• Cable bill
• Water bill
• Electric bill
• Gas bill

Pros and Cons of Paying Utility Bills With a Credit Card

Pros of Paying Utilities With a Credit Card

• Earn Rewards: Using a rewards credit card can help you earn points, miles, or cash back.
• Purchase Protection: Some cards offer protection for items paid for with the card.
• Welcome Bonuses: Meeting spending thresholds for bonuses can be easier.
• Payment Assurance: Automatic payments ensure bills are paid on time.
• Dispute Resolution: Easier to dispute charges and get your money back.
• Credit Score Boost: On-time payments can help build a solid credit history.

Cons of Paying Utilities With a Credit Card

• Convenience Fees: Some providers charge fees for credit card payments.
• Credit Utilization: High usage can negatively impact your credit score.
• Interest Charges: Unpaid balances accrue interest, increasing debt.

How to Pay Utilities With a Credit Card

Set up automatic payments on your utility provider’s website or by calling them. Some providers accept direct credit card payments, while others use third-party processors like Plastiq, which may charge additional fees. Understand all fees before setting up payments.

How On-Time Utility Payments Can Improve Your Credit

Utility providers typically don’t report payments to credit bureaus, but late payments sent to collections can hurt your credit score. However, using services like Experian Boost® can add utility accounts to your credit report, potentially improving your score with on-time payments.

The Bottom Line

Paying utilities with a credit card can be beneficial, but keep an eye on your balances to avoid high credit utilization. For any mortgage service needs, call O1ne Mortgage at 213-732-3074. Our team is here to help you make the best financial decisions.

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