I literally put every charge I can on a credit card. I can’t tell you the last time I used a debit card or cash for a purchase and as a matter of fact it takes me a while to try and remember what my pin code is on my debit card. With that said, if you aren’t putting all your purchases on a credit card you’re wasting valuable points.
I think it’s safe to say most people wouldn’t think twice to use a credit card when they are out shopping in the store but many would not think to pay for things like your phone bill, rent, car payment, mortgage, etc. on a credit card. Paying your phone bill, Spotify subscription, and so forth is easy as most vendors always accept credit cards. Rent, car payments, mortgages, etc. can be a little bit more tricky as vendors don’t always have an easy way to pay with a credit card or they charge a fee.
So let’s take a look at your options for putting all your charges on a credit card
1) Vendor accepts credit cards and doesn’t charge a fee.
If the vendor accept credit cards and doesn’t charge a fee, don’t hesitate to start paying that bill with a credit card. Boom, easy points that you wouldn’t have earned otherwise.
2) Vendor accepts credit cards but charges a fee
Many vendors will let you pay with a credit card but force you to pay a fee to use it. When this happens, you need to do some cost benefit analysis to see if paying with a credit card is worth it. If you trying to meet the spending requirement for a hefty sign up bonus don’t hesitate to pay the fee as you will almost always get more points in return than what you paid. If you aren’t working towards a sign up bonus then make sure you always get as many points or more points than the fee. For example, the agency that runs the apartment complex I live in charges a flat $20.95 fee to pay your rent with a credit card. If I were to pay with the Discover It Miles card I would earn 1.5% cash back and that would double in the first year earning me 3% cash back for each rent payment. 3% cash back on my $1400 dollar rent payment earn me $42 dollars back. Not bad!
3) Vendor doesn’t accept a credit card
If a vendor doesn’t accept a credit card, you can use a middleman service such as Plastiq to where you pay them with your credit card and they pay your bill in cash. They do charge a fee which is around 2-2.5% of your purchase. Again use your Discover Miles card which will give you 3% cash back.
4) Using your Amex or Discover to buy Visa or MasterCard gift cards
Many times vendors a vendor only accepts a certain type of card. Buy gift cards with your credit card to counteract this. But Visa gift cards with an Amex card for example.
These are a few tips that I use or know about. Feel free to comment below with your own tips or contact me as well.