What is the more cost effective?

carl310166

I am sure one of you MSE can advise me which is the most cost effective in this case.

Next year,i was thinking of paying as many annual bills by credit card,so i can get my reward points (or cashback for other people).I am sure i could pay my council tax/tv licence/water rates and lottery,any others?

But,would it be better to keep the money gaining interest in a bank/savings account and pay monthly as i do now?

I reckon the total bills would come to £1500,so i could get 750 Tesco points=£30 in deals.

Could someone work out if you had the £1500 in an account paying say 3.75% nett,how much interest i would get if i paid them monthly,i.e approx £150 per month being deducted.

Does this sound a bit crackers? i won't take offence.

Moderators,please feel free to move to the credit card board if you think it's more appropriate.

Xbigman

There are discounts for paying by direct debit on a lot of household bills that equal more than £30. You also need to price in the phone calls to make the CC payments (or stamps if you can post). So for utility bills this is a non starter.
I'm pretty sure the local council won't accept council tax by CC anyway.
Regards



X

BenL

I maybe wrong but isn't there a rule that you can't use Credit Cards for gambling funds??

Ben

grumbler

I am quite sure that you cannot pay 'council tax/tv licence/water rates' bills by CC directly. I don't know about your card, but some credit cards do offer 'pay a bill' facilty. However, this is the same as using CC cash advance (or CC cheque). You will not earn any cashback (points), but will pay cash advance fee.
Example from my MBNA online banking system:

Pay Other Bills

By clicking on the Submit button below, you authorise payment of the above balances by your MBNA Credit Card account number detailed below.

You will be charged a handling fee for balance transfer transactions, unless we have told you otherwise, of up to 3% of the transaction (minimum up to £3).
:eek:

carl310166

I guess it's a non starter then.

steady__eddie

The council in my area allow payment by credit card (Sandwell, W. Mids)

ti1980

My local council is Manchester City council and (I'm not recommending it at all) they allow you to pay by credit card in two ways, either on their website or over the phone.
My council doesn't accept AMEX.

There are so many other methods in which you can pay though, by direct debit, with a debit card over the phone, at any paypoint machine, by cheque through the post, cash at a post office and the list goes on.

I guess I would only advise you pay by credit card if you have the cash to pay off the credit card and then you can take advantage of any points you might gain.

Hope this helps.