Ours is a generation that is heavily dependent on utilities like the internet and electricity which incur bills every month. Irrespective of the usage, we cannot avoid utility bills. A stable payment system like credit cards is a smart way to ensure timely payments and win rewards.  Using credit cards for utility bill payments helps reduce the financial burden of paying from your pocket while improving your credit score. Some of the best credit cards for utility bill payments offer numerous benefits like travel and shopping points which help you save money when redeemed. This article will tell you how to maximize your rewards using some of the best credit cards for utility bill payments.

What Are Utility Bills?

Electricity, water, internet and cooking gas are crucial to the daily functioning of our lives. These services are chargeable and incur monthly bills depending on their usage. These bills are called utility bills. Daily consumption of these utilities incurs considerably huge bills regularly. One smart way to go about the process is to use a dedicated credit card for utility bill payments. Here are some of the best cards you may consider for this purpose.

Best Credit Cards For Utility Bill Payments

All credit cards come with many benefits, especially for utility bill payments. However, a few stand out because of their peculiar rewards structure. Here is a list of some of the most effective cards with which you can earn credit card points for utility bill payments.

Axis Bank Ace Credit Card: This credit card offers a 5% cashback on all utility bill payments made via Google Pay. There is a 4% cashback if you opt for food delivery via the Swiggy and Zomato platforms.

Airtel Axis Bank Credit Card: This card is specifically designed for Airtel SIM card holders. It allows them to avail of a cashback upto 10% on all utility bills paid through the Airtel Thanks app.

Standard Chartered Super Value Titanium Credit Card: Customers get a 5% cashback on all utility bill payments made through this credit card.

HDFC Regalia Gold Credit Card: This card offers four reward points per ₹150 spent on utility bills. So, if you pay high amounts, you can accumulate a considerable number of reward points.

Amazon Pay ICICI Credit Card: This card has no annual fee and provides 1 reward point per ₹100 spent on utilities, alongside various other benefits.

Why pay utility bills using credit cards?

In today’s fast-paced world, physically paying utility bills can be very frustrating. Credit cards give you the convenience of paying them in the comfort of your home, with just a tap. Using credit cards to pay utility bills has this and a few other advantages which are listed below.

Convenience: As mentioned above, paying utility bills using credit cards has become very convenient with the advent of technology. You can set up a monthly automatic payment schedule to keep up with the due dates, thus saving you the physical and mental effort to remember them.

Building a good credit history: A good credit history goes a long way. It contributes to better CIBIL scores, thus indicating your creditworthiness to lenders. When you consistently pay your utility bills using a credit card, and later pay the credit card bill on time, it adds to your credit score, and builds up your credit history.

Improve your chances of earning credit card points for utility bills: Using credit cards for crucial purchases also improves your chances of earning credit card points for utility bills. These points can be redeemed as travel miles or for shopping discounts.

Save your salary for bigger purchases: With a credit card for utility bill payments, you can be worry-free about having to pay utility bills from your pocket. Another good thing that happens when you use credit cards for utility payments is that you get to set the bill’s due date which gives you some control over your monthly payments.

How to Choose the Right Credit Card for Utility Bill Payments

Credit cards are great to own if you are mindful in choosing them. 

Interest Rates

If you own and use a credit card, the respective company charges you with interest unless you pay your credit card bills in full. Hence, this is one of the primary factors to look into while applying for credit cards.

Annual fees

Look for credit cards with low or no annual fees. Generally, if you apply for a credit card from the same bank where your salary is credited, they waive off the annual fees. For example, HDFC Bank and SBI do not charge annual fees for certain credit cards. This can be advantageous to you.

Cashback and rewards structure

A cashback is when credit card companies pay a certain percentage of the purchase price to buyers. Usually, credit card holders get up to 1% of the total amount spent as cashback. We recommend cards like the Airtel Axis Bank Credit Card which offers a 10% cashback on utility payments done via the Airtel Thanks app or the Swiggy HDFC Bank credit card which offers a 10% cashback on food orders.

Credit Score Impact

The credit score is an integral part of your credit card journey. Hence, it is essential to read up about credit card reports and credit scores, particularly how to check the score and to read and analyse your credit reports. This will help you in the long run.

A credit card is a boon especially when you don’t have enough money to meet the necessary expenses like utility bills. Hence, it is essential to choose a credit card that helps lower expenses and offers good benefits. 

Conclusion

With the rise in the cost of goods and services, paying multiple bills at once can be challenging. Credit cards are a great way to take care of your bills as they provide the freedom to set up automatic payments and come with amazing benefits. There are a few credit cards specifically curated for utility bill payments. It is important to consider a few factors like interest rates, credit score impact, etc. before deciding to apply for such credit cards. Above everything, you must educate yourself about the pros and cons of using credit cards for utility bill payments. This can be helpful in the long run.

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