What if I told you you could save HELLA credit card points without a dollar of debt?

Credit cards are a handy tool to use as they make the buying process for ANYTHING more convenient. One of the best ways to use a credit card is to pay monthly bills (and immediately pay them off using a debit card) because countless card companies offer reward points as incentives for spending MONEY. So, we decided to put together a guide on paying monthly bills with credit cards and accumulating reward points without accumulating debt.

Automate EVERY Bill You Can

One of the biggest advantages of credit cards is the ability to automate the bill payment process so you don’t have to manually initiate the transaction.This should only be done for recurring bills that you need to pay before the due date in order to avoid penalty fees. These bills can include essentials like internet, phone, and non-essentials like cable and satellite television. You can also set and forget bill payments for recurring expenses like car insurance so there are no lapses.As soon as you pay your monthly bills via credit card, BE SURE to pay off your credit card IMMEDIATELY.  We like to set up weekly payments to cover these expenses.  For example:1 . Your monthly car note is $299 (Yep, we're HELLA frugal)2. You use your credit card to setup an automatic monthly payment on the 13th (your bill is due on the 20th)3. Once the amount clears, you IMMEDIATELY pay off your credit card using your debit cardWhy?  You rack up FREE points.  Because you're paying your bill with your credit card (contingent on the type of card), you'll rack up free points for bills you would already be spending money on if you were using your debit card.  It's a win-win because you're essentially getting free POINTS.  POINTS equals free money!

Rack Up Reward Points

Reward points might seem unsubstantial at first, but when you accumulate them over time, you can save a TON of money. By paying monthly bills through your credit card, you’ll have rewards for every transaction and these reward points can then be used to make other purchases down the line.Just make sure you pay your credit card bills on time in order to take advantage of this program.Paying bills with a credit card for rewards makes sense when you are in a relatively stable financial condition and are able to meet your obligations on a monthly basis.  

See How One of Our Users Paid for a Vacation Using Points

One of our users (we'll call him Jay) completely switched his spending habits by transferring ALL of his bill expenses to a credit card.  Every Monday, he would pay his credit card via debit card.The process took approximately 3.5 minutesAfter 8 months, Jay was able to pay for two tickets to Barbados (Jay loves to travel) with JUST points.  Need receipts?  We got you:

Take Advantage of Protection & Perks

Credit card companies want you to keep using your credit card so they offer a number of protections and perks, especially for regular payments and big expenditures. Most credit card companies will offer zero-fraud liability, purchase protection, auto rental coverage, and guaranteed returns, etc. These protections make transactions more secure, which can be a great way to ensure your money doesn’t go to waste or isn’t fraudulently taken from you.

In one example, one of our readers used their credit card at a gas station.  A few days later, they found out the card reader was tampered with and TONS of cards at that kiosk were compromised.

Because our user used a credit card, the money was refunded immediately.  

Had they used a debit card, an investigation would have ensued and their funds could have been depleted.  It would have taken time to receive their funds and clear their account of fraudulent activity pending an investigation.

Credit Card companies DO NOT play around with fraud.  It's taken care of swiftly and quickly.

Credit Cards are a GREAT Way to Manage Expenses

Some consumers hesitate to pay bills with credit card to earn points because they worry about falling in debt. We get it, credit card debt can be hard to shake off so it’s natural to hesitate.

But they can also be a great way to keep track of all expenses and ensure you don’t spend more than you need to. As every purchase you make is tracked and added to your account, you can view when you’re exceeding your personal spending limit and need to curtail your expenses.

If you're committed to saving money and avoiding debt, you should be able to keep your credit card bills under control and manage your expenses well.  To start, just use it for monthly bills you would need to cover anyway.  Once that's established, think about using it for everyday expenses like lunch and gas.

What Bills Can Be Paid with Credit Card?

There are a number of bills you can pay with your credit card.  Just be sure you track every expense carefully in order to avoid over-spending.  This can be done EASILY via mobile app or via Mint.

• Grocery and food-related expenses
• Clothing and lifestyle items
• Entertainment like movies, music, Netflix, etc.
• Cable
• Landline and cell phone bills
• Internet bills

Sidenote:  a credit card should ONLY BE USED for expenses you already have.

Some of Our Favorite Credit Cards

Below, we've curated a list of our favorite credit cards and some of their perks.  Browse them and make an informed decision about which one you can utilize for your expenses.  In most cases, the first year fee can be waived, so don't let that deter you from applying.

Capital One® Venture® Rewards Credit Card

Annual Fee $59

Bonus Value $400

Chase Sapphire Preferred® Card

Annual Fee $95

Bonus Value $500

Blue Cash Preferred® Card from American Express

Annual Fee $95

Bonus Value $150

Browse a full list of the Best Reward Credit Cards

Avoid Paying Bills Via Credit Card if You’re Already in Massive Debt

If you’re already in debt, try to avoid adding more to your financial burden by using your credit card to pay bills. If you’re struggling with debt, it’s a better idea to stop using your credit cards and pay directly from your bank account because you’ll only be using the money you have on hand. When used correctly, credit cards can be a very convenient and helpful way to control your spending. Just BE SURE to pay the bills on time and limit the number of credit cards you use, and you won’t find yourself in debt.  Let's get this MONEY.