Paying for a range of utility bills forms a large part of your monthly expenditure. Your income largely gets spent on utilities like electricity bill, water bill, Piped gas, LPG etc. All of these are essential commodities and are necessary to keep our day to day lives going on smoothly. Imagine a day without electricity or LPG running out suddenly. It can create chaos for you and make your routine unstable. It is important to have an uninterrupted supply of these utilities and paying the utility bills on time is one of the ways of doing so.
Online utility bill payment using a Credit Card
Your utility bills can be paid via Credit Card using online bill payments apps very easily. It is a very convenient and easy method of paying bills. However, as each bill is of a different amount, you might have to judiciously decide which bills you’ll be paying via credit card. It is very important to understand and plan out how you will pay, what bills you will pay and how will you repay your credit card bill. This is to ensure that you do not get trapped in the credit card debt.
How does paying utility bills via Credit Card work?
The entire process of paying utility bills with a credit card differs depending on the bank. It’s possible that you’ll see different selections from the same bank. However, the typical procedure is that you must first register a login account with your card issuer. After you’ve created the account, you’ll need to add billers from a list provided by the bank. The list will cover all gas, telephone, power, water, DTH, insurance, and other utility service providers. It is important to note that the biller must be on the bank’s list in order to use this service. To make a payment, simply pick the biller and provide the required information, such as the customer number and the payment amount.
Using Your Credit Card to Set Up Automatic Payment Instructions for Utility Bills
You can easily take care of your future payments using standing instructions (autopay) with one-time registration. This auto-debit service allows auto payments from your credit card on the due date of your payment.
If you make your utility bill payments using your credit card, you can stand a chance to win cashback, rewards and vouchers. This helps you save money while shopping at partner brands. Paying utility bills using your credit card allows you save money annually and you can also set maximum limits on your bills.
Why to use your Credit Card to pay utility bills –
1. To get rewards and cashback –
Getting reward points on your spends or winning cashback vouchers is a prime advantage for which one avails a credit card in the first place. Benefits as such are the most attractive features of any credit card. Provided you clear all your dues on time, the reward points or vouchers are an added advantage for you.
2. To auto-pay your bills –
Let’s face it. We all tend to forget the due dates on which certain bills have to be paid. A credit card allows you to set up auto pay functionality that automatically debits money from your credit card on the set date. Thus your service providers receive your utility bill payments online, automatically. You later get an alert that the money has been paid successfully from your card.
3. A convenient method –
Credit Card is one of the most convenient methods of paying your utility bills online. It you can pay from anywhere, anytime. It takes out the hassle from your life and makes it convenient for you to keep track of all the payments that you make using your card. As you can track every payment, it becomes easy for you to stick to a budget. It helps you avoid over-spending and use your money judiciously.
To conclude, it is wise to use your credit card to make selective bill payments. Paying your credit card dues on time is however extremely important as it affects your credit score. You must draw out a detail budget plan carefully and manage your finances in a disciplined way.