Paying utilities with interest-free credit card?

[TheSummerITurnedChubby]

This might be a bit of a specialist question and I have joined MSE Forum to ask as well, but they don’t validate your log in straight away - so I wondered if anyone here would know?!

I have a large outstanding amount with British Gas; I’ve known about it for ages as my direct debit was much too low. They’ve now understandably put up the DD by much more than we use, to claw the money back.

I would prefer to make a single payment to clear the arrears, and then set the DD at a level that reflects the average of our annual use; this would be much better for budgeting. I’ve made credit card payments before by using the BG website, but I now have an interest-free-for-purchases credit card - if I used this, would the payment to BG count as a purchase? I don’t want to make the payment then it accrue interest on the credit card.

Anyone advise on this rather niche question please?!

I'd expect the card agreement to define what is, or is not, a purchase. Otherwise can you ask the provider of the card?

Yes, you need to check whether your credit card issuer counts payment of utilities as cash/cashlike transactions. This includes cash withdrawal, as well as gambling but I don't know about utilities.

But I don't know if using a credit card will achieve what you want anyway because, if you pay your energy debt using a credit card, you'll have a credit card payment and your energy DD to make. TBH, I'd just let the DD rise and fall as they suggest, and just keep an eye on it to make sure your account is not going too far into credit or debt.

Thank you both! I’ve been back to the terms and conditions and it’s not mentioned specifically, so yes I’ll have to ring them.

I know you can pay with a credit card as I’ve done it before with a normal one. But the point with this one is to pay it off at a later date, having put the money saved from the DD into savings, and not paid interest on the credit card. But it may not work, if utilities are counted as purchases, in this respect