There are many different everyday purchases that credit cards are used to pay for, and many people also use them to pay their household bills with. You may be wondering what kinds of things you can use your credit card to pay for and how to do it. Are there any additional costs to paying this way? Are there any benefits that credit card payments offer over more conventional payment methods?
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If you are considering changing the way you shop or using a credit card to pay your mortgage payment or other bills, be sure you know how your credit card company handles these matters, and make sure they work for you.
What are some bills not traditionally paid by credit card that you can use a credit card to pay for?
In addition to the traditional purchases of goods and services, you can use your credit card to pay your rent and utility bills in many cases.
You can pay some taxes and municipal fees with a credit card. Your car and other insurance needs can be paid by credit card. You may have noticed that many fast food establishments accept credit cards these days. The number and types of goods and services you can take care of with a credit care is growing every day.
How do you set up credit card payments?
If you want to pay regular, periodic bills such as your rent or utilities, the best thing to do is to contact each one of these businesses individually to see what they offer in the way of credit card payment acceptance. They will let you know the particulars of any arrangements they offer. They may charge your credit card on a certain day of the month. They may have a small additional fee for this service, be sure to ask if they do. On the other hand, there are discounts or fee waivers for paying by credit card.
It is a good idea to check with your credit card issuer; sometimes this is your bank, to see what limitations if any that may apply. Banks in particular sometimes arrange with local governments for payments directly from an accounts tied to credit cards. Electric, water and local taxes can often be paid this way. It will pay to stop by and see what they are offering.
The Internal Revenue Service (IRS) now allows you to pay taxes with a credit card, check the details at their website. The IRS uses several different service providers who may require a convenience fee, be sure to check the details closely.
Does paying by credit card cost more than paying the traditional ways?
Not generally if the credit card debt is paid in full each month. The company receiving payment may actually offer a small discount if they know they can count on regular payments that you may set up. In the case of car insurance, there may be an additional fee, but that is usually not for payment by credit card, but rather for the convenience of extending monthly payments to you. There are some instances where a small convenience fee is charged, but this is generally worth it considering the added benefits of paying this way.
What are the benefits of paying bills by credit card?
Paying for products and services by credit card provides a good record of what you are spending money on and can be used help you plan your budget and to settle disputes with those companies you do business with. You may accumulate reward points when paying monthly bills, just as you would with regular credit card purchases.
Many credit card purchases will give you the benefit of the issuer’s financial clout. If a product or service is not as advertised, you can refuse the payment and the issuer of the card will withhold payment while you dispute a credit card purchase and find a resolution.
Some purchases with a credit card may save you money on extended warranties.
Bank of America has an excellent website that tells you about the benefits of paying bills and other items with a credit card. There are several other benefits to paying by credit card, visit Bank of America for complete details.
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