How do Credit Cards Help in Utility Bill Payments? Learn about the Benefits!

Posted on Monday, February 27th, 2023 | By IndusInd Bank

Utility bill payments are recurring expenses that must be made on a regular and timely basis to avoid losing access to essential services. Making these payments with your credit card allows you to enjoy greater ease and convenience, track your expenses, and reap benefits related to reward points, cashback, and credit score.

For most people, utility bill payments – essential service bills such as gas, electricity, water, and telephone – take up a substantial chunk of monthly expenditure. Since these expenses are frequent and unavoidable, paying for them online can help you save time and ease the process of managing your finances.

However, the term ‘online payment’ is broad and could imply net-banking, credit cards and debit cards, and third-party payment apps among others. Of all these options, using your credit card to clear your utility bills presents more benefits than others.

Read on to know why it is an excellent idea to use your credit card for utility bills.

Benefits of Paying Utility Bills via Credit Cards

While luxuries or pricey gadgets may be bought only occasionally, utility bills have to be paid every month. So why not reap the benefits of paying these via your credit card? Here are 5 great advantages of paying your monthly utility bills using your credit card:

1) Enjoy Ease & Convenience: Time is money in today’s fast-paced world. You could use your credit card to automate your monthly payments, setting standing instructions. Subsequently, the billed amount would be automatically paid on the designated date, making sure you never miss the due date. Save time and forget the hassle of manual payments – all in one stroke.

2) Earn Cash-back: Cashbacks make for pleasant surprises, especially if you can earn them with ease, on a regular basis. You could choose a card with cashback rewards on transactions and earn those every time you make a utility bill payment. Once these accumulate, you could use them to pay your future utility bills or make other purchases.

3) Maximize your Reward Points: A credit card presents an opportunity to earn reward points every time you spend. So, why let go of these? Pay off your utility bills via your credit card and earn reward points – an effortless albeit lucrative exercise! Use these reward points to make additional payments, thereby increasing your savings.

4) Track & Manage Expenses with Ease: Even if you are relying on online modes to make utility bill payments, managing and keeping track of multiple bill expenses can get tricky. Organize, track, and manage better with the help of your credit card which will have all expenses laid out on one statement.

5) Build a Credit Score: Unlike one-time indulgences, utility bill payments are payments you would make anyway, ruling out the possibility of defaulting because you can’t afford them. Making these regular payments through your credit card and diligently paying them off every month can work wonders for your credit score, opening doors for loan offers on favorable terms, higher credit limits, and plenty more. 

A Word of Caution

As elucidated above, paying your monthly bills by credit card is a superb idea. However, two rules must be adhered to:

• Make sure to pay your balance in full and on time every month.
• Never put bill payments on a credit card if you can’t afford to pay them because late payment fees are high.

Why Opt for IndusInd Bank Credit Cards

With the right credit card, managing your utility bill payments and all other finances can be a breeze.

IndusInd Bank offers unique credit card benefits to help you maximize your savings, even as you spend.

With irresistible benefits such as lifetime free credit card, attractive discounts on retail, dining, travel, & entertainment; lucrative cashback offers, and reward points that do not expire, IndusInd Bank credit cards are a great option for making regular utility payments and high-ticket purchases.

IndusInd Bank offers an assortment of credit cards, so you may pick one that best suits your lifestyle requirements. Apply for a credit card today and start enjoying the benefits.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author 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.