Tips for finding the best credit card for utility bill payments

We've all been there- it’s close to the month-end and you’ve exceeded your spending limit already. Just when you decide you wouldn't spend any more, you receive a utility bill for electricity, phone, or gas service. Although you have the funds, paying it right now feels penny pinching. What if we told you that you could use your credit card for utility bill payments? You’d be able to pay without dipping into your savings, as well as earn and utilise special rewards on your credit card.

In this article, we'll explore the ins and outs of using your credit card for utility bill payments and how to go about it smartly.

Benefits of using a credit card for utility bill payments

• Convenience

You can use your credit card to make bill payments from the convenience of your home or office. Moreover, you won’t have to wait for your salary to be credited to your bank account. You can use your credit card to make payments on the first of every month and then repay the amount later.

• Cashback and point rewards

Every time you use your credit card to pay your utility bills, you earn reward points on it. You can redeem these points to receive exciting gifts by logging into your credit card account. Some credit card issuers also provide cashback on credit card bill payments. This cashback lowers your monthly expenses and results in greater savings. 

• Discount offers

Some card issuers provide special discount offers on credit card bill payments and other transactions. For example, with IDFC FIRST Bank Credit Card, you can transact at more than 300 merchants across India, including Myntra, Tata Cliq, Swiggy, Zomato, Make My Trip, etc. and get exclusive discount vouchers.

How to select the right credit card for utility bill payments?

Here are the factors you should consider while selecting the best credit card for making utility bill payments-

• Annual fees

Credit card providers may charge an annual fee for the services offered through a credit card. When looking for the best credit card for utility bill payments, it’s better to opt for a card with zero or a very nominal annual fee.

• High cashback

Check for the cashback and reward points that you will receive on using your credit card. Opt for the card offering the highest cashback. For instance, FIRST Power and FIRST Power+ by IDFC FIRST Bank  provide amazing welcome cashback offers right from your first transaction.

• Interest rate

Credit card providers charge an interest rate if you fail to pay your credit card bills within the due date. A credit card with the lowest interest rate is usually the best for monthly bill payments. With the FIRST Power and FIRST Power+ Credit Cards, the interest rate starts at as low as 9% per annum.

• Reward points

The best credit cards for utility bill payments offer attractive reward points when used for utility bill payments. As an example, the FIRST Power and FIRST Power+ Credit Cards give you 15X and 30X reward points respectively on utility payments. This means you accumulate reward points faster, which you can redeem for discounts on online and offline purchases.

The right way to use your credit card for bill payments

Do follow these tips while using a credit card for utility bill payments -

• Pay your bills on a fixed date every month. You can also use the auto-payment feature to use your credit card to pay utility bills as soon as they are generated

• Pay your credit card bills on time. Late payment can attract a hefty penalty and interest

• Use your accumulated reward points or cashback to lower your payments. Redeem your reward points before their expiry

• Use your credit card to pay bills through trusted platforms only

Conclusion

While using a credit card for utility bill payments is beneficial, it’s crucial to do so in the right manner. IDFC FIRST Bank Credit Cards offer accelerated reward points, zero annual fees, and competitive interest rates starting from 9% per annum. Explore different credit cards and choose the one matching your requirement. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.