Person managing finances at a desk, holding a credit card and paper, surrounded by calculator, bills, glasses, and a notebook.

The Best Credit Card to Pay Utility Bills for You

5 min read

Published March 13, 2025

Table of contents

Key Takeaways

You may be able to earn cash back or miles when you use a rewards credit card to pay your utility bills.
Some utility companies charge a processing fee for credit card payments, so it’s vital to make sure your rewards offset the cost.
The best credit card for utilities may allow you to earn rewards on other everyday expenses.

Many people use their checking account to pay for utilities each month, but some providers may accept credit card payments, too. Using a credit card for steady, recurring costs like your utilities, may help you earn rewards without overspending or racking up interest, as long as you manage your credit responsibly. With the right credit card, you may keep track of your utility payments on your monthly statement and earn rewards to help you cover everyday expenses.

How to pay utility bills with a credit card

Your credit card might help you cover a wide range of your regular household expenses, including utilities.

Some providers of public utilities, like gas, water, electricity, and recycling, allow credit card payments, often for an extra processing fee. If your utility provider charges a processing fee, you may consider paying with a no annual fee credit card.

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To determine if you can pay a specific bill with credit, contact the service provider directly. You might be able to set up credit card utility bill payment on the company’s website, or by speaking with customer service over the phone or in person.

Other types of recurring household costs, like cell phone service, internet, cable, and streaming services, usually accept credit card payments. However, you typically can’t use credit to repay existing debts, like student loans, personal loans, mortgages, or car payments. (You may be able to use a cash advance from your credit card for these bills in an emergency, but it’s often an expensive, high-interest option).

If you set up automatic payments on your card, keep a close eye on your available credit—you don’t want an automatic payment to exceed your credit limit. This can be especially important when you pay your electricity bill with a credit card, as the amount you owe can fluctuate with your electricity usage. For example, your electricity bill may be higher in July than in October if you rely on electricity for air conditioning in the summer.

What to consider before using a credit card to pay utilities

While using a credit card to pay for utility bills can be a convenient option that helps you earn rewards, you should keep some considerations in mind before switching payment methods.

Utility companies generally don’t report your payments to credit bureaus, Experian explains, so they don’t appear on your credit report. That means paying your utility bills on time each month may not help you build positive credit history. However, unpaid utility bills may hurt your credit if they go to collections. Likewise, if your utility payments take up too much of your available credit, they could increase your credit utilization ratio and hurt your score.
Some utility providers may charge you an additional processing fee when you pay your bills with a credit card or debit card. You might want to make sure the credit card rewards you earn offset potential charges.
Interest charges could leave you spending more on utilities. Any balance you carry from one month to the next may start accruing interest. To avoid overspending on your utilities, it’s best to repay your balance in full each month.

Best credit cards for utility bills

The best credit card for utilities should offer enough rewards and benefits to offset any potential service fees. The right fit for you depends on your priorities and spending habits.

You may want to use a credit card for utilities that also helps you earn bonus rewards on another necessary expense—gas. If you use a gas rewards card to fill up your tank and cover your utility bills, you may increase your cash back.

Did you know?

With the Discover it^® Chrome Gas & Restaurant card, you may earn 2% Cashback Bonus^® at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically.¹ Plus, earn unlimited 1% cash back on all other purchases, including your utilities.

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A travel credit card is another potential option for your utilities. That way, your regular expenses could help you work toward a family vacation or luxurious getaway. With the Discover it^® Miles Credit Card, you could earn 1.5 Miles on every dollar of every purchase.² Turn Miles into cash. Or redeem as a statement credit for your travel purchases like airfare, hotels, rideshares, gas stations, restaurants, and more.³ A flat rate card like this one could also be a good choice if you only plan to use your credit card for your monthly bills.

If you want to use your card for a variety of purchases in addition to your utilities, you may consider a credit card with rotating bonus categories, like the Discover it^® Cash Back Credit Card. Earn 5% cash back on everyday purchases at different places you shop each quarter, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases, including your utilities. If your spending lines up with any of the bonus categories, that could mean earning significant rewards.

For most people, monthly bills are inevitable. A rewards credit card could help you turn these necessary expenses into cash back to spend as you choose.

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