Whether you want to meet the minimum spending requirement for a welcome offer or raise miles for your next reward trip, putting your daily spending on your credit card can unlock serious value.
No points and mileage enthusiasts want to return potential rewards or cash to the table, but it is crucial to follow the golden rule of credit cards before you start swiping each bill: Always pay the balance in full on time. Doing so can help you avoid interest charges, protect your credit scores and even earn credit card rewards.
With repeated bills and other fees using a reward credit card, it is not worth collecting every transaction even if you are a responsible cardholder.
Here is how to determine which bills are paid with a credit card – it is best to keep the card in your wallet.
Related: TPG’s 10 Credit Card Commandments
How to decide whether to pay your bills with a credit card
Can you pay off your full balance?
If you charge more than you can still repay before the due date, you may face huge interest charges. In fact, in the second quarter of 2025, the average APR’s interest credit card was 21%.
That’s why it’s crucial to know your credit card’s APR – especially if you tend to be ongoing balance.
Even if you take advantage of the April offer, you will have a balance every month, and there may be disadvantages. Credit card debt can cause your money to be lost in hidden ways, including higher credit card utilization that can damage your credit score.
It is usually best to just use your credit card for your bill and you are sure you can repay it in full by the next due date.
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Is there a fee to use your credit card?
Before entering credit card details to pay the bill, check if the merchant or service provider charges a surcharge.
Because of bank swap fees (collected by banks), landlords, utilities and other service providers often transfer these fees to customers who borrow credit cards to pay.
In some cases, you can use alternative options to avoid surcharges. For example, BiltMastercard®*Let you pay rent with a credit card without transaction fees (see rates and fees).
*TPG founder Brian Kelly is a BILT consultant and investor.
When it comes to merchants or service providers, you can also consider switching to a card that won’t pay for a credit card payment.
However, sometimes, there is no surcharge avoidance – unless you use another payment method. In this case, it is worth mentioning that math is to determine if you will receive more rewards.
TPG’s monthly points and mileage valuations can help you solve these numbers. And if you are trying to meet the minimum spending of a popular offer or get a bonus reward in a specific expenditure category, these additional points, miles or cashbacks may be in your favor.
Is fraud or purchase protection important for this transaction?
One of the main benefits of using a credit card is that it provides more protection than debit cards, cash or checks. For example, if your debit card is used fraudulently, your liability may be higher. However, with credit cards, the Fair Credit Billing Act (FCBA) allows you to object to issues such as billing errors, outstanding goods and services.
Many credit cards also offer purchase protection, which can reimburse you if you use a qualifying item or shortly after purchase, assuming you pay with a card that offers this benefit. Some even include extended warranty benefits that add an extra heart if anything happens after the manufacturer’s warranty period.
Bottom line
It’s better to turn down your credit card with certain fees – especially if you can’t pay your full balance every month and risk charging a lot. In this case, it may be wise to pause your credit card spending until you pay off your debt and have a plan to avoid overspending.
However, when used responsibly, a credit card can be a wise payment method, especially if you can pay the balance in full and avoid surcharges. Even if the fees are charged, the rewards or benefits you earn may still make it worth it, depending on how the math works.
Related: 13 fees you shouldn’t pay on your credit card
See BILT Mastercard Rates and Fees here.
See BILT Mastercard Rewards and Benefits here.
