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Pros and Cons of Paying Your Bills with Credit Cards

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Paying your bills with credit cards can be a convenient way to stay on top of what you owe. In most cases you can even increase your cash-back earnings on your rewards cards with your bill payments. Before you link your credit card account to all your utility bills, though, be sure to consider the pros and cons of paying your bills with credit cards.

Pros of Paying Bills with Credit Cards

Consider these benefits of paying your bills with your credit card:

Automatic payments give you fewer bills to fill out each month. This can be great if you travel a lot or just have a lot of other things to juggle in life.

Avoid worrying about services being turned off or interrupted coverage since you’ll never miss a payment.

Paying online can be quicker and easier than filling out a paper bill and putting it into the mail.

Rewards points can add up faster when you put your utility bills on your credit card.

Cons of Paying Bills with Credit Cards

While putting bills on plastic can be rewarding, there are also certain risks to consider:

Autopay gives your credit card information or bank account info to the company issuing your bill. For best identity theft protection, limit the number of companies that have direct access to your finances.

Autopay can put your bill paying mode into autopilot. This can be treacherous for your bills that aren’t paid automatically.

Mistakes can slip through more easily if you aren’t actively reviewing your bills and their individual charges each month.

Spending patterns can also increase if you aren’t aware of how much you are actually racking up each month on your credit card by paying all your other bills this way.

Keep these pros and cons in mind to determine the best bill payment plan for your situation.

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