Banks give out credit cards, and they help people in various ways. To begin with, they provide a line of credit for the users when they need cash. Additionally, using the cards also has its benefits. However, few are aware that a utility bill payment can also be made using a credit card.
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In this article, we will learn how to use credit cards to pay utility bills and examine their advantages and disadvantages. Further, we will see how you can do this for different states across India.
How to Pay Utility through a Credit Card?
The sage of cash is declining daily as more and more avenues spring up to help people pay bills. The top advantage of credit cards is that one can spend more money than one can afford. This creates a credit line that you can address later. Utility bills are also expenses we need to meet every month, and here’s how you can do it by using a credit card.
Offline Method
The offline method is similar to paying utility bills with a debit card. So, let’s assume you need to pay your electricity bill. All you need to do is visit a collection centre and opt to pay via credit card. The cashier will take out a machine in which you can tap/swipe your credit card and enter your secret number to pay the bill.
This amount will be presented to you later on your credit card bill due date. You can then pay it using your debit card, auto-debit feature, UPI app or any third-party app. No interest will be charged if you pay the bill within a certain period.
Online Method
The online method is the most popular nowadays as internet access is quite simple. However, you can use various methods to pay your bills even while using the internet. You can:
- Log onto the service provider’s website and opt to pay by credit card.
- Use a third-party website/application and opt to pay utility bills via credit card.
- Log onto your bank’s website and add the biller’s information to the autopay list on your credit card.
However, for these methods, you will need details like account number, consumer number, and a few other details.
Advantages and Disadvantages of making a Utility Bill Payment via Credit Card
Using credit cards can sometimes be worthwhile and sometimes not. It truly depends on the situation and the user. Let’s compare the pros and cons.
Advantages
- Convenience: The top merit would have to be convenience. Using a credit card, you can walk up to a counter and use the machine to swipe your card and make the payment. Additionally, you could also use online methods from home. These days there are even specialised utility credit cards that make it easier.
- Rewards: As we all know, using credit cards to make payments yields rewards. These can vary from cashback offers, discounts, miles or reward points. Typically, a threshold needs to be crossed to earn these, but most banks offer them, and they are quite low. The new-age utility bill payment-focused credit cards offer greater rewards on certain payments.
- Credit Score: People who use credit cards daily and make it a point to address the bill on time can also increase their credit scores over time. This raises their creditworthiness and helps them get better deals on loans in the future.
- EMIs: Nowadays, E-commerce websites allow credit card users to convert large bills into EMIs. This makes buying large items easier.
Disadvantages
- Interest: The credit line offered by a credit card allows users to spend more than they can afford. This comes at the cost of interest being charged over time. However, some banks offer their customers the option to forego the interest payments if they clear the bills within a specific period.
- Never-ending Debt: People who go overboard with their spending on the credit card often need help to foot the bills after each cycle. Therefore the remaining amount from each month accumulates interest and keeps getting larger, thus creating a never-ending cycle of debt.
- Credit Score: The credit score increases with timely bill payments but also goes down with missed payments. Repeated offences damage the credit score a fair bit, making it difficult to ask for loans in the future.
How to Pay Different Utility Bills using a Credit Card?
When speaking of utility bills, the three main variants are:
- Electricity
- Water
- Gas
Utility bills are generally posted to our home addresses along with either an Email or an SMS. In addition, digital bills generally have a link to the payment portal, whereas printed bills may have a QR Code. Once you use these links, you can pay the bill directly on the service provider’s website.
Another method you can use is to add the biller’s information to your credit card’s autopay list. To do so, you can:
- Log onto your bank account online.
- Visit the credit card tab.
- Navigate to the autopay section.
- Add the details pertaining to the utility bill you want to pay.
Once the above steps are completed, the bill will be paid off automatically every month, provided the credit limit permits.
Finally, you can also use third-party apps and websites to pay utility bills. For instance, if you want to make an online electricity bill payment, you can:
- Log onto your preferred app/website.
- Select the utility bill you want to pay.
- Select the service provider from the list.
- Enter your consumer/customer number.
- Select to pay via credit card.
How to Pay Utility Bills Through Credit Cards in Different States?
Utility bill payment is a part of all our lives, and we pay according to our usage. However, different states have different providers, and certain payment methods are associated with them. Let’s go over a few ways you can use it.
Using Third-Party apps and Websites
NoBroker isn’t just a place to meet buyers, sellers and renters anymore. You can do so much more now. For example, paying utility bills is also possible.
(You can pay many bills using NoBroker.)
As of today, the NoBroker portal allows users to pay bills pertaining to the following:
- Electricity
- Water
- Insurance
- Cable TV
- Broadband
- Piped Gas
- DTH
- Fastag
- Municipal Taxes
- Subscriptions
- Rent
Of all these, we can consider the electricity bill payment, water and piped gas as utility bills. Let’s see how you can pay the bills by taking electricity as an example.
- Log onto the portal.
- Select a state from the ones offered.
- Select the board/service provider.
- Provide your consumer/customer number
- Click Pay Now.
- Select the credit card mode of payment and pay the bill.
As of today, you can pay the utility bills generated within the following states:
| Bihar | Assam |
| Odisha | Jharkhand |
| Madhya Pradesh | Uttarakhand |
| Gujarat | Haryana |
| Karnataka | Maharashtra |
| New Delhi | Punjab |
| Rajasthan | Tamil Nadu |
| Uttar Pradesh |
Using the Service Provider’s Portal
Many service providers also allow their customers to use their own portals to make payments. For this example, let’s see how to pay the Tamil Nadu Generation and Distribution Corporation Ltd bill.
- Log onto the portal.
- Select Pay Online With/Without Registration
- Enter the Consumer Number, Email Address and Mobile Number.
- Click Quick Pay and select Credit Card.
Once all these steps are completed, you have successfully made the tamilnadu electricity bill online payment.
Read: Karnataka Electricity Bill Payment Made Easy 2024
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Using the Credit Card’s Autopay feature
Every credit card provider allows users to add billing information regarding different services like utility bills, insurance premiums, subscriptions, etc. To do so, you will need to:
- Log onto your net banking account.
- Go to the credit card section.
- Select Add Biller
- Enter the relevant details pertaining to the service provider.
- Click Confirm.
Once these steps are completed, you can make the Adani gas bill payment or any other, as per your location and requirement.
Utility Credit Cards in India
Credit cards are the most demanded financial product by Indians today. The constant need for cash gives rise to this demand. Users are happy to pay the interest amount as long as they get a line of credit to meet their daily requirements.
Banks in India have answered this demand by bringing out a product called utility credit cards. These are just like any other credit card. However, they provide extra benefits for paying utility bills. Let’s compare a few top options.
Axis Bank MY Choice Credit Card
| Charges | Benefits |
| The yearly fee is 250 | 5% cash back on utility bills |
| Customers can design their own cards by paying an additional 150 | Transactions above 2500 can be converted into EMIs |
| Additional credit cards will bear no joining or yearly fees. | Earn 4 eDGE Loyalty Reward Points on every 200 spent |
| The very first transaction earns 100 eDGE Loyalty Reward Points |
Standard Chartered Super Value Titanium Credit Card
| Charges | Benefits |
| The yearly fee for the first year is 500 and 750 for every following year | 5% cash back on fuel and telecom bills. |
| Additional credit cards will bear no joining or yearly fees. | Earn 1 reward point for every 100 spent on bills from categories excluding fuel and telecom bills. |
| Maximum cash back is capped at 100 per transaction and 500 per month. | 5% cash back on every utility bill payment |
Citi Cash Back Credit Card
| Charges | Benefits |
| The yearly fee is 500 | 5% cash back on telecom bills |
| Additional credit cards will bear no joining or yearly fees. | 5% cash back on movie tickets |
| Maximum cash back is capped at 100 per transaction and 500 per month. | 5% cash back utility bill payments using the secure bill pay facility. |
Credit cards are the top financial product among all the others provided by banks. This is due to the constant need for cash in India. Using a credit card can be very beneficial, as discussed above. But users should use the cards according to their ability to meet the bills at the end of the cycle. Not being able to do so can greatly injure one’s credit score and begin a never-ending debt cycle.
If you want to make a utility bill payment online, head over to NoBroker and pay using your credit card to earn unique rewards. The portal also allows users to make rental, college fees and society maintenance payments.
Read: Noida Water Bill Payment: Fast and Reliable Online Transactions for Residents
FAQ’s
Q1: What are the different kinds of credit cards?
A1: Users can opt for the following:
(1) General Cards: These have no annual fees and offer the very basic features of a credit card.
(2) Reward Points Cards: These cards are designed to provide reward points to customers for every spend. You can later use these points to buy flight tickets and get vouchers or gifts.
(3)Cashback Cards: These cards are designed to provide cashback to customers on specific uses like utility bill payments, fuel bills, etc.
Q2: Can anyone get a credit card?
A2: Unfortunately, you will need to visit a bank’s website to see the eligibility criteria to check if you can. The main factor determining eligibility is the credit score.
Q3: Can a credit card be used at an ATM?
A3: Yes, most credit cards allow users to withdraw cash from ATMs. However, this does attract quite a bit of interest if not paid back within a specific period.
Read: Best App to Pay Rent: Ultimate Guide for Digital Transactions
Q4; What is the total due and minimum payment on a credit card bill?
A4: Every credit card bill has two payment options. You can either foot the total due, incur no extra charges, or make the minimum payment to keep the credit card active. However, the remaining amount will attract interest over time.
Q5: Can I convert bills into EMIs with a credit card?
A5: Yes, you can. However, every bank has its own terms pertaining to EMI conversions.
