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Can You Earn Cashback on Bill Payments?

Can You Earn Cashback on Bill Payments?

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Can You Earn Cashback on Bill Payments?

Cashback credit cards and apps provide money back on purchases. Many routine bills also allow credit card or online payments. Strategically using cashback rewards on recurring household and service bills can maximize your earnings on regular expenses.

How Cashback Rewards Work

Cashback credit cards and mobile apps give you a percentage of spending back in cash rewards:

  • Credit cards provide 1-5% back automatically on purchases
  • Apps offer cashback when you shop through their links
  • Earnings can be redeemed for statement credits, gift cards, bank deposits
  • Rewards incentivize usage on purchases you make already

Both platforms create opportunities to earn cashback on bill payments.

Benefits of Earning Cashback on Bills

Getting cashback on recurring bill payments provides multiple advantages:

  • Make money back on essential fixed expenses
  • Reduce the net cost of household bills over time
  • Provides guaranteed passive rewards each billing cycle
  • Maximizes the value from your cashback programs
  • Simple way to increase rewards with existing habits

Cashback transforms bill obligations into savings opportunities.

What Types of Bills Can Earn Cashback?

Many common household bills and services accept credit cards or provide cashback opportunities:

  • Cable and cell phone services
  • Utilities like electricity, gas, and water
  • Insurance premiums like home, auto, and health
  • Property taxes and association fees
  • Internet and subscriptions like Netflix and Spotify
  • Mortgage and rent payments
  • Child care and tuition

Search for bills offering credit card payment options or app discounts.

Maximizing Credit Card Rewards on Bills

Follow these tips to optimize cashback credit card rewards on bill payments:

  • Use cards offering bonus category rates on bills like utilities or streaming
  • Put routine payments on auto-pay using your cashback card
  • Use flat-rate 2%+ cards to never miss base rewards
  • Check terms – some issuers treat bills differently than purchases
  • Avoid cash advance fees on card payments to financial institutions
See also  Instant Approval Cashback Rewards Cards

Managing bills directly through issuer websites simplifies earning category bonuses.

Best Apps for Bill Payment Cashback

Top cashback apps offering bonuses on household bills include:

  • Dosh – Bills like cable, utilities, phone, and rent
  • Drop – Rewards on bills through Plaid account linking
  • Raise – Gift cards for bill amounts let you earn points
  • GetUpside – Cashback at gas stations can offset fuel bills
  • Empower – Rewards for paying loans through their app

Link supported accounts to apps or utilize bill pay gift card options to stack rewards.

Drawbacks of Earning Cashback on Bills

Potential disadvantages of putting bills on cashback cards include:

  • Difficulty meeting minimum spend for sign-up bonuses
  • Reduced flexibility to adjust payment timing
  • Possible fees depending on processor and card network
  • Need to monitor accounts to avoid missed auto-pay
  • Requires very organized budgeting habits

Understand unique risks based on your financial profile before automating bill rewards.

Things to Consider Before Using Cashback for Bills

Key considerations before paying bills with cashback programs:

  • Will autopay impact account balances and overdraft risk?
  • Are there fees for using credit cards the issuer doesn’t absorb?
  • What are consequences of missed payments if autopay fails?
  • Can you ensure cards get paid off fully each month?
  • Do you mind reduced flexibility in payment dates?

Evaluate your money management preferences and risks before proceeding.

Alternative Bill Payment Reward Programs

Beyond cashback, other programs reward routine bill payments:

  • Bank account rewards on monthly direct debits
  • Credit card airline mile rewards on phone and utilities
  • Issuer discounts for enrolling in autopay programs
  • Retailer and merchant loyalty programs with linked accounts
See also  Maximizing Quarterly Cashback Bonuses

Compare available options to identify the most lucrative rewards for your typical bills.

Maximizing Rewards and Cashflow

To optimize bill payment rewards while maintaining cashflow:

  • Only automate predictable fixed expenses within budget
  • Get rewards cards with longest 0% intro periods to allow grace period
  • Use autopay minimums and manually pay full amounts after bills generate
  • Leverage flexible due dates and grace periods

The key is balancing rewards with cashflow to avoid overspending or missed bill deadlines.

Key Takeaways on Bill Payment Rewards

  • Many routine bills accept credit cards and provide cashback opportunities
  • Use category bonuses strategically and automate payments
  • Ensure sufficient account balances before payments process
  • Monitor autopay activity and card payments frequently
  • Compare issuer reward programs beyond just cashback

With diligent account monitoring and spending control, recurring bill payments present an easy opportunity to maximize cashback and card rewards.

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