Among Friends

[homedecor1]

First, I'll admit I only have house bills and 1 0 balance airline card (I book all my flights on it to get miles).  I also have a "cash rewards" card bal. 0.

At the pool today the ladies were discussing how they pay all their monthly bills & food, etc. using a credit card to get "cash rewards" & by the conversation some get big $$ at the end of the cycle.  They said they'd been doing this for years.

I have been trying to understand how to do it but it's not making sense to me. I believe they said they "charge" the charges to their card.

Does anyone do this & if so, can you explain to me (I must be dumb cuz I'm not getting it!)

I never carry balances on my cards so I assume every month you'd pay card off.

thank you!

[GCR18]

Credit cards have reward programs.  Some are better than others.  You charge your purchases and pay when the bill comes.  You get rewarded for buying.  For example, I have an Amazon card.  If I charge amazon purchases on it, I get 5% back.  At the end of the month, my bill shows how many points I earned.  I can save them or spend them.  I usually buy gift cards with my points.

[KathyPet]

Well,of course any store that sells food probably accepts credit cards as a payment method so that is easy.  As far as other bills like utility, insurance, real estate taxes etc I know that some of mine have a area on th bill where you can fill in a credit card number and expiration date and mail it to,the company and they will charge the credit card you have listed on the bill they sent.  THen when the credit card bills arrive they simply pay it off.

[DiAnne]

I use my Costco Visa card on eating out, on-line purchases, vet bills, repair bill, etc.  Pay them off every month and get more than enough to pay my yearly membership to Costco with plenty left over.  This has been going on for years.  

[Snowpuppy]

Check the terms of earning your rewards. Some cards only give you airline miles for airline tickets, hotels, rentals, etc. If you pay utility bills with it, that may not qualify for points or miles.

Some cards also change their rewards regularly so you have to be aware when they do.

[Mz iMac]

My mother has a AAA cc w/cash award.  She pays everything w/cc and pays off the balance each month.

She gets checks every month for $100 up to $500 a month. 

The higher amount checks are usually when I purchase stuff on her card (I give her cash) so she can get $$$.  When she gets her cash back check, she gives me half.  The most she ever got was $2500.  She does a lot of overseas traveling.  She's 92 yrs young.

[homedecor1]

@Mz iMac

yes I think this is the card AAA rewards. I'd really rather have the ca$h because my airfare is usually under $100 r/t.

thank you for input I'm going to AAA tomorrow to plan my cruise I'm going to ask.

[tansy]

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@DiAnne wrote:

I use my Costco Visa card on eating out, on-line purchases, vet bills, repair bill, etc.  Pay them off every month and get more than enough to pay my yearly membership to Costco with plenty left over.  This has been going on for years.  

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I do the same as @DiAnne.  I get a hefty check from the Costco Visa every year, plus another one from my Costco membership level.  I use the card virtually everywhere. 

[KathyPet]

I think what the OP is asking is how you can use a credit card to pay the regular monthly bills that you receive like utilities, car insurance, newspaper subscriptions etc., etc.  OBviously buying on line or physically being in a grocery store or a dry cleaners or your vets office you just hand over your card or enter the information on line but how do you use a credit card to pay a bill you receive in the mail.

[VaBelle35]

Not all utilities or household bills allow the use of a credit card.  Some of mine do, some of mine don't.  For the ones that don't, I have to use my bank account for withdrawal or use online banking.

I have a Visa Signature Rewards through a credit union.  It's 5% on gas, 3% on groceries and 1% on everything else.

I pay EVERYTHING (but Costco) with that card and once a week I go in and download all the transactions and pay it off.

I get about 11,000 points every 3 months, enough for a $100 Amazon gift card.

I also pay all my doctor and pharmacy stuff with it and then reimburse myself from my HSA.

I've seen people pay other credit cards with their rewards credit card, but I haven't done that.  People will go to Macy's or Steinmart and ask to pay their bill and use their rewards card to pay it.  This is genius, I just am not in the store enough to make it work. I pretty much just order online and return in stores.