Credit cards offer convenience for payments. With just a quick swipe or a linked account, a payment can be instantly processed. It seems like a no-brainer to use that convenience for taking the hassle out of paying bills. But, is it a smart idea to pay monthly bills with a credit card?

Choosing to pay a bill with a credit card can have a significant impact on your general financial wellness — for better or for worse. That’s why it’s important to consider the many variables of this decision before going ahead with it. Let’s take a closer look at the pros and cons of paying monthly bills with a credit card.

          Here are just a few of the advantages of paying with a credit card:

• Automate monthly payments. Setting up automatic payments for monthly bills through a credit card will help ensure payments are always on time.
• Build credit with a consistent monthly payment. Using a credit card for a monthly bill is a great way to amp up a credit score without running the risk of overspending. Just be sure to pay the bill in full and on time every month.
• Earn rewards for money that needs to be spent anyway. Using a credit card that offers rewards for a bill that needs to be paid anyway will help to pile on those rewards points. Many credit cards also offer attractive rewards for using the card to pay for specific expenses, like points for each dollar spent.
• Enjoy consumer protection. Paying with plastic offers the consumer the advantages of purchase protection, zero or minimal liability in case of fraud, guaranteed returns and more.

• Pay your bills quickly without the hassle of writing out checks and using snail mail. With a credit card, paying a bill only takes a few clicks or phone prompts.
• Budget easily. Paying with a credit card makes for easy tracking of monthly spending.
• Payments post promptly. Bill payments made via credit card will generally post within one or two business days. Contrast that with a check that needs to be mailed out, delivered to the correct party and then deposited and cleared until the payment is finally processed.

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The disadvantages of paying bills with credit cards:

• There may be fees for paying the bill with a credit card. Pay close attention to the payment options on every bill; some service providers charge a processing fee for paying with a credit card.
• It can make a difficult financial situation worse. For consumers who are already carrying a sizable amount of debt, it may not be the best idea to charge a monthly bill to a credit card.
• Credit utilization may cross the threshold to an undesirable rate. One of the key components of an excellent credit score is a low credit utilization rate. For consumers with a minimal amount of available credit, charging too many bills to a credit card can cause their score to plunge.

Interest may accrue. Consumers who cannot pay their entire credit card bill each month would be saddled with more accrued interest than they can afford if they choose to pay their monthly bills with a credit card.