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Paying utility bills with a credit card

Using a credit card to pay your utility bills can save you time and effort.

Managing household expenses can be demanding for busy professionals and families. Learning how to automate your payments and finding the best credit card for utility bill payments may make your life simpler and more rewarding.

We'll cover: 

Why pay utility bills with a credit card? 

What types of bills can you pay with a credit card? 

How to pay utility bills with a credit card

Tips for managing a credit card utility bill payment

Frequently asked questions

Why pay utility bills with a credit card?

You can use a credit card bill settlement to make payments easier, avoid late fees, and earn valuable rewards. 

In the past, we had to mail cheques or visit offices to pay bills. Things are much simpler now.

You can pay most of your bills online and use utility bill credit card payment options. Linking your credit card to UPI can make it even easier.

Here are some reasons people prefer to pay their electricity bill or other bills by credit card:

Convenience

The main reason is that it's easy. You can keep all your bill payments in one place. And you can automate payments to save time in the future.

Rewards and cashback

Many credit cards offer cashback, vouchers or rewards for bill payments. You can potentially save money and earn rewards, which build up over time.

Grace period

Credit cards give you a grace period of up to 50 days to pay without incurring interest, giving you more flexibility.

Tracking

It's easier to track your finances and stick to a budget if you're able to see all your expenses in one monthly credit card statement. 

Read more: How to use a credit card smartly

What types of bills can you pay with a credit card?

You can pay almost all routine household bills using a credit card in India. Here are some common examples:

  • Electricity and water bills
  • Gas and LPG bills
  • Mobile and internet bills
  • TV and streaming subscriptions
  • Insurance premiums
  • Income tax

How to pay utility bills with a credit card

To pay an electric bill with a credit card, you can use your banking app, a payment app or the utility provider's website. Check your banking app to see if your utility provider is listed.

Here's how to proceed with utility bill credit card payments:

Using your bank's app

  1. Log into the app.
  2. Go to 'Bill Payments' or 'Utility Payments'.
  3. Select your provider.
  4. Enter your account details.
  5. Choose 'credit card' as the payment method.

Using payment apps like Paytm or PhonePe

  1. Open the app.
  2. Select 'Bills' or 'Recharge'.
  3. Pick your service provider.
  4. Enter your details.
  5. Complete your credit card utility bill payment.

Through the provider

  1. Visit the utility provider's website or app.
  2. Find 'Pay Bill' or 'Make Payment'.
  3. Enter your details.
  4. Choose 'credit card' as your payment method.

How to set up auto-debit

  1. Visit your bank's website.
  2. Search for recurring payments or auto-debit.
  3. Follow the instructions.

Learn more: 7 steps to adding credit cards to UPI apps

Tips for managing a credit card utility bill payment

To get the most out of paying your electricity or other bills with a credit card, follow these tips:

  • Look for the best credit card for utility bills for your needs, such as one that offers low fees or high rewards
  • Make sure you check your credit card balance and pay in full to avoid interest and late payment fees
  • Set up auto-debits so you never miss a payment deadline
  • Use only secure platforms, like banking or trusted payment apps
  • Watch out for any extra fees that some providers may charge for paying by credit card
  • As with all credit card transactions, monitor your statements to stay on track of your spending

Apply for an HSBC Premier Credit Card

Get a range of exclusive benefits, from travel to gourmet dining to lifestyle privileges.

Frequently asked questions

Can I pay all bills using a credit card in India?

Yes, you can pay most utility, mobile, TV, insurance, subscription and other bills online with credit cards. But some smaller providers may not accept them yet.

Do I earn rewards on bill payments?

Yes, most credit cards give cashback or points on bill payments, depending on your card type and the offers available. Bear in mind you don't earn rewards for paying your income tax with a credit card.

Is there a fee for paying bills by card?

Some providers charge a small convenience fee, especially for electricity bills, but many allow payments without any extra charge.

Can I automate my utility payments?

Yes, most banking apps allow you to set up standing instructions, so your bills are paid automatically every month, saving you time.

What happens if I miss paying my card bill?

If you don’t clear your card bill on time, you’ll face late fees and very high interest charges. It also reduces your credit score.

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