When you should (and shouldn’t) pay bills with your credit card

Whether you're trying to reach the minimum spending requirement for a welcome offer or simply racking up miles for your next award trip, putting everyday expenses on a credit card can unlock serious value.

No points and miles enthusiast wants to leave potential rewards or cash back on the table, but before you start swiping for every bill, it's crucial to follow the golden rule of credit card use: always pay your balance in full and on time. Doing so helps you avoid interest charges, protect your credit score and even earn credit card rewards.

While using a rewards credit card for recurring bills and other expenses can pay off, not every transaction is worth charging, even if you're a responsible cardholder.

Here's how to decide which bills make sense to pay with a credit card — and when it's better to keep that card in your wallet.

Related: TPG's 10 commandments of credit cards

How to decide whether to pay a bill with a credit card

Can you pay off the full balance?

If you charge more than you can afford to pay off by your due date, you could face steep interest charges. In fact, the average APR on interest-accruing credit cards was over 21% in Q2 2025, according to the Federal Reserve.

That's why it's crucial to know your credit card's APR — especially if you tend to carry a balance.

Even if you take advantage of a 0% APR offer, carrying a balance from month to month can have drawbacks. Credit card debt can cost you money in hidden ways, including the fact that a higher credit card utilization rate could harm your credit score.

In general, it's best to only use your credit card only for bills and purchases you're confident you can pay off in full by the next due date.

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Are there fees for using your credit card?

Before entering your credit card details to pay a bill, check whether the merchant or service provider charges a surcharge.

Due to bank interchange fees (charged by banks), landlords, utility companies and other service providers often pass those costs on to customers who pay by credit card.

In some cases, you may be able to sidestep surcharges by using alternative options. For example, the Bilt Mastercard®* lets you pay rent with a credit card without transaction fees.

*TPG founder Brian Kelly is a Bilt advisor and investor.

When it comes to merchants or service providers, you might also consider switching to a card that doesn't tack on extra fees for credit card payments.

However, sometimes, there's no avoiding the surcharge — unless you use a different payment method. In those cases, it's worth doing the math to decide whether the rewards you'll earn outweigh the added cost.

TPG's monthly points and miles valuations can help you crunch the numbers. And if you're trying to meet a welcome offer's minimum spend or earn bonus rewards in a specific spending category, those extra points, miles or cash back could tip the balance in your favor.

The information for the Bilt Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Is fraud or purchase protection important for this transaction?

One major benefit of using a credit card is the added protection it offers compared to debit cards, cash or checks. For instance, if your debit card is used fraudulently, your liability could be higher. But with a credit card, the Fair Credit Billing Act (FCBA) allows you to dispute charges for things like billing errors, undelivered goods and services and more.

Many credit cards also offer purchase protection, which can reimburse you if an eligible item is damaged or stolen shortly after it has been purchased, assuming you paid with a card that offers this benefit. Some even include extended warranty benefits, adding extra peace of mind if something breaks after the manufacturer's warranty expires.

Bottom line

Some expenses are better left off your credit card — especially if you can't pay your full balance each month and risk racking up high-interest charges. In that case, it may be wise to pause credit card spending until you've paid down your debt and created a plan to avoid overspending.

But when used responsibly, credit cards can be a smart payment method — particularly when you can pay the balance in full and avoid surcharges. Even if a fee applies, the rewards or benefits you earn might still make it worth it, depending on how the math works out.

Related: 13 expenses that you should not put on your credit card