Paying bills is an unavoidable part of life. But what if you could get rewarded for it? A number of credit cards now offer tempting cashback rewards when you use them to pay your monthly utilities, cell phone bill, insurance premiums, and more.
Cashback credit cards have surged in popularity thanks to their simple rewards structure. When you use a cashback card for purchases, you earn a percentage back in the form of statement credits or reward points.
Many cards offer bonus cashback on select spending categories too. Read on to discover which credit cards give you the biggest cashback bonuses on your bill payments.
Capital One SavorOne Cash Rewards Credit Card
- Earns 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart and Target).
- 1% cash back on all other purchases.
- $200 cash bonus after spending $500 in first 3 months.
- No annual fee.
The Capital One SavorOne card is a great option if you want to maximize cashback rewards on entertainment and dining purchases. But it also earns an unlimited 3% cash back when you use it to pay your utility, cell phone, and cable/streaming service bills each month.
Bank of America Cash Rewards credit card
- Earn 3% cash back in a category of your choosing including gas, online shopping, dining, travel, drug stores, or home improvement/furnishings.
- 2% cashback at grocery stores and wholesale clubs.
- 1% cash back on other purchases.
- $200 online cash rewards bonus after spending $1,000 in first 90 days.
- No annual fee.
The Bank of America Cash Rewards card lets you pick your 3% bonus category each month. So you can rotate it to match your biggest bills.
Use it for the gas category when your heating bill is due, then switch it to online shopping for your internet and cell phone bills. This flexibility makes it easy to maximize rewards.
Citi Custom Cash Card
- Automatically earns 5% cash back on your top eligible spend category each billing cycle (up to $500 in purchases per month).
- 1% cash back on all other purchases.
- $200 cash back after spending $750 on purchases in first 3 months.
- No annual fee.
Citi’s Custom Cash Card tailors your rewards automatically each month. If you consistently spend the most on gas, cell phone bills, or another category, you’ll earn an unlimited 5% cash back on it. The rest of your purchases earn 1% back.
U.S. Bank Cash+ Visa Signature Card
- Choose 2 categories to earn 5% cash back on each quarter including utilities, TV, internet & streaming services, or cell phone providers.
- 2% cash back on one everyday category like gas, grocery stores, or restaurants.
- 1% cash back on other transactions.
- $200 bonus after spending $1,000 in first 120 days.
- No annual fee.
The unique quarterly category bonuses on the U.S. Bank Cash+ card make it easy to align your biggest bills with the 5% cashback offers. When your larger insurance premium or utility payments are due each quarter, switch to those categories to maximize rewards.
PayPal Cashback Mastercard
- 2% cash back on every purchase with no limits.
- 3% cash back when using PayPal for purchases.
- No annual fee.
The flat-rate cashback offered by the PayPal Cashback Mastercard keeps rewards simple. You’ll earn an unlimited 2% back on any bills paid directly with the card. And a nice 3% rate when paying through your PayPal account.
Strategies to Maximize Cash Back on Bills
While the above cards offer the best opportunities to earn cash back on bill payments, there are some additional strategies to make the most of these rewards:
- Pay close attention to bonus category caps. Many cards limit higher rewards to a monthly or quarterly maximum spend amount. Spread out bigger bills to stay under the limits.
- Use online bill pay through your card’s website when available. This ensures the transaction codes as a bill payment rather than general purchase.
- Set up automatic payments through your credit card to avoid missing bill due dates and interest charges. Just be sure your balance gets paid in full each month.
- Pair your cash back card with other rewards programs or coupons when available to get even more value. Utility and cable company rewards programs can give additional discounts on top of your credit card cash back.
- Focus your card usage on bills with higher monthly costs to maximize returns. Payments like mortgages, insurance, internet and cell phone bills give the biggest bang for your buck.
While paying your obligations isn’t glamorous, it is satisfying to get rewarded in the process. With the right cashback credit card strategy, you can offset some of the costs and put money back in your wallet.
Frequently asked questions
Q. Which credit cards offer the highest cashback rewards on bills?
Some of the best options include the Citi Custom Cash Card (5% cash back in top spend category), Capital One SavorOne (3% cash back on utility, cell, and streaming bills), and U.S. Bank Cash+ Visa Signature Card (5% cash back in 2 categories you choose).
Q. What types of bills can I pay with a cashback rewards credit card?
Most cards allow you to earn cashback when paying utilities, cable/streaming services, cell phone bills, insurance premiums, internet, gas, and other common household bills. Just check the bonus category details.
Q. Do I need to sign up for bill pay through my credit card?
signing up for automatic bill pay through your card’s website ensures transactions properly code as bills rather than purchases. This guarantees you earn the full cashback rate.
Q. Are there limits on how much cashback I can earn from bill payments?
Many cards cap bonus cashback earned in specific categories each month or quarter. Be aware of limits and spread out large payments if needed.
Q. Will paying bills with my credit card hurt my credit score?
As long as you pay your statement balance in full each month, using a card to pay bills will not negatively impact your credit. In fact, it helps build a good payment history. Just avoid going into credit card debt.
Conclusion
Getting cash back when you pay your monthly bills is a savvy way to offset household expenses. With the right credit card, you can earn anywhere from 1-5% back on the bills you have to pay anyway including utilities, insurance, cable, cell phone, and more.
Just be sure to select a card that aligns with your biggest spending categories. Make bill payment easy by setting up automatic payments through your card issuer. And pay off the balance each month to avoid interest and credit damage.
With a simple cashback strategy, you can put money back in your wallet while responsibly managing your obligations. Consult our list of top-rated cards to find the best fit for your bill payment cashback needs.