Credit cards are not just for making quick purchases in lieu of cash or checks or for those times when there is a short term cash crunch or for making big ticket purchase transactions.  Credit cards can also easily work as an efficient and effective bill paying machine.

Almost all bank credit cards offer a bill payment feature.  Most credit card holders think of the bill paying feature as a method to pay the monthly credit card bills.  While it’s true, that is an element of the credit card bill payment feature, the more attractive feature is the ability to use the credit card to make online credit card payments to a whole variety of bills and household expenses.

Along with the convenience of automatic bill payments, among the more beneficial features of the online bill payment options with credit cards are the grace period that allows for an interest free short term loan as well as the ability to earn credit card reward points and bonuses.

With automatic bill payment by the use of a credit card, the card holder can set up automatic monthly payment for utility bills, insurance, subscriptions, loan payments and more.  In the meantime, the credit card bill itself can be set up for automatic payment from your bank account. 

Individuals can benefit from the grace period or due date that allows the account holder to incur no credit card interest charges as long as the credit card balance is paid in full each month before the due date.  Typically, credit card grace periods or due dates are 21-25 days after the close of each billing cycle. In effect, the free credit period means that you can utilize other people’s money free of cost.

Credit card account holders that pay their bills automatically can earn a variety of different reward points depending on the type of rewards credit card used.  Reward points on the credit card can be earned for just about any net purchase transaction regardless of the nature of the transactions.  Paying your grocery bills or taxes can earn credit card reward points just like buying a new washing machine would.  These credit card reward points are earned based on the terms of the credit card.   

Credit card rewards points earned from paying these every daily bills can be exchanged or redeemed for cash back on the card account or for merchandise and accessories or travel miles. Since recurring monthly household charges can be substantial, the reward earning may also be significant.

The reward points are earned and credited as per the credit card company’s policies. Since the credit card rewards program have become such big business, some bank credit cards have increased their promotions by offering bonus reward points for opening a new credit card account.

Be careful not to roll over the outstanding credit card balances that accrue with recurring monthly payments month to month.  By paying all your bills in full, once you are running on autopilot, you can avoid being charged interest.  Credit card companies will charge interest from the billing due date on the existing outstanding amount.  The credit card interest charges can unnecessarily add to the costs of managing your bills.

To find more information on credit card offers for low interest rates or credit card reward programs or credit cards for balance transfers see the following lists at low interest credit cards, rewards credit cards and balance transfer credit cards.  Additional credit card databases at Bestcreditcardrates.com include: prepaid credit cards, cash back credit cards, secured credit cards, student credit cards and business credit cards.

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