Do people actually use credit cards to pay bills or is that a red flag?

[YourEdgyJoker]

I’ve always thought of credit cards as something you use for emergencies or bigger purchases, not regular bills. But lately I’ve noticed more people mentioning they pay rent, council tax or utilities with their credit card. Is this just normal now or is it a sign things are tight?

AIBU to wonder if this is smart financial strategy or a slippery slope?

It's a risky strategy if it isn't purely for a simple points gathering with several multiples of the costs sitting in a bank account, as it takes one glitch in clearing the balance in its entirety (eg, a direct debit being requested the side of a weekend before salary goes in or an employer having a computer systems failure, a mistake in crediting the correct pay or going into administration) to fall so deeply in the mire that they'll never get out again.

I wouldn't do it because even national employers and banks have messed up or been subject to hacks before now - what's to say that it can't happen again?

Don't. You don't get the same control with a continuing payment authority that you do with the direct debit guarantee - a company can keep on taking money from credit cards whether you like it or not and whether or not you've changed your card number.

And all the ones I have dealt with have never batted an eyelid, I don’t know what else to say. I have never had an issue and have rented in a good few countries.

I ddin't think you could pay those things with a CC

Bills are DD but I use CC for most other things as I get cashback.
Pay off in full each month.

I just wanted to say that's a very insightful post. I am continually surprised by how many of my (middle class) friends are terrified of using CC and getting into debt...completely failing to understand the benefits that several people have mentioned above - better consumer protection, cashback and rewards, and you can pay it off without incurring interest.

YABU. We use our credit card to pay for council tax/electricity/spotify/ Netflix (loads of things actually) It’s so that we can save up Avios points to fly longhaul. The card is always paid off in full every month so it’s fine, we’re just using it for the benefits 🤷‍♀️

We use 0% deals, save the money and then pay off several thousands at the end of the 0% period. Free money 💰 my friends also think I'm risking bankruptcy and destitution but it's never gone wrong in 30 years.

I just want to be clear, I don’t not use or have a credit card because I’m scared of debt…I have literally NEVER had the need for one. There is nothing it can do for me that my debit can’t.

We buy everything on cc. All purchases and bills etc. We get 5% cashback for every purchase and we always pay it off in full without going in debt, so its really worth it.

Thanks

It's a safer way to buy things & improves your credit rating.

I’ve had several times where I have just done a chargeback on my debit card…no difference. Again my credit rating is perfect!

pleaze share which card give good cash back? Thanks .
mine is MBNA and is pants

I booked flights on my credit card. The airline went bust. The credit card company refunded the flights that week and then they prayed the airline on my behalf.

The protection the credit card company provides is huge

Which cc gives 5 cb?

Paying with credit cards offer protection - you can get money back if you pay with a credit card (e.g. you buy a sofa and the company folds without fulfilling the delivery) but you won’t with your current account card or cash. You get protection on items up to £30k, last I checked.

But I have claimed things back on my debit and received it…

This exact scenario happened me with a company…I got my money back…I don’t know what else to say.

If it is over £100 I will use the credit card in order to get my air miles and have credit card protection. Always paid off in full.

No it's not complusary to have direct debit

@Statsquestion1 I replied before reading all your posts on the thread. I'm surprised you've never been refused car rental/ hotels, numerous other things without a credit card, but if it's working for you, no real need to change if, I read you saying you got your mortgage, but I'd rethink your strategy now if you plan to move in the future. But NOT if you don't think you can be disciplined & pay it off in full monthly.

@YourEdgyJoker

I don't use it for bills. Never thought to?! but I buy everything online with it, petrol, my weekly Tesco delivery, any random purchases over about £20 at the shops.Pubs/restaurants etc, but still use my debit card for smaller purchases (takeaway coffee etc) it costs retailers to take CC's.so I don't think it's fair for piddly purchases.

Not really as you put the money into an account simply for the CC when you spend it. So not relying on salary for next month going in. As an example if I spent £130 on council tax on the 6 th then that same day I shift money out of the current account and put into the bill account to pay off the card when it's due. Where's the risk?

So, you guys had me all confused. I’ve been doing some digging. I’m in Ireland where the is no added protection from having a credit card, they are treated the same and you just do a chargeback.