Using a Credit Card to Pay Bills / Mortgage

Pint_Sized_Princess

Hi,

Hope I've put this post in the right place.............

I currently pay monthly for my home insurance through my Tesco credit card in order to earn extra Clubcard points. It just got me wondering if there is any downside to doing this and if not, is it possible to pay all my monthly bills (or most of them) via this method?

Are payments as easy to stop as a direct debit?

Also,. I was particularly wondering if I could earn additional points by paying my monthly mortgage payment this way?

Any advice would be greatly received!

simongregson

The payments are very difficult to stop. In my opinion it's not worth the hassle when trying to cancel for a few extra points. There are plenty of stories on here of people having payments taken when they have tried to cancel the credit card authority. Try to stick to direct debit where you can cancel without involving the company (although you will still be responsible for making payments if you have signed up for a contract).

Mortgage companies will not accept payment by credit card anyhow (they would have to pay a transaction fee, and the credit card company would probably regard it as a cash advance anyhow).

PBA

I remember reading on here a while back that you can pay Orange bills on credit card. You need to sign up for DD from a bank account, but then when the bill comes phone them and give your credit card instead.

Southern Electric take credit card for payments, but charge 2% surcharge. Can't give you any more advice as haven't tried paying any other bills with credit card.

Pint_Sized_Princess

Thanks for your replies, guess thats that then

But just one more thing I've been thinking about..........

IF I did pay all my bills through my credit card but then paid off the balance in full every month, does anyone know if this would have any adverse effect on my credit rating?

i.e if I spent alot more through my credit card each month would this be able to be picked up by future potential lenders?

Cheers guys !

simongregson

As long as you pay it off it will have a positive effect on your credit rating with the credit reference agencies.

However, paying utilities bills by credit card might be viewed by your own bank as a sign of financial difficulty. However, I doubt that they look at your accounts in that much detail.

loveandlight

Council Tax can be paid by credit card although the council charge an extra £1.50 for using that method.

ystalyfera

was going to try this myself,but reading the posts here i want to pay bills without the surcharges:D for me to save cash not give it away.i have never had a c/card of any kind and was going to look around, but i'll think again after reading the posts here:money: