Paying utility bills is a necessary part of life, but it doesn't have to be a financial drag. By strategically using the right credit card, you can turn these essential expenses into valuable rewards. This article will explore the best credit card options for maximizing rewards on utility payments in 2024, focusing on cards that offer bonus rewards in relevant categories and provide practical benefits for everyday spending.
| Credit Card | Rewards Structure | Key Benefits |
|---|---|---|
| Chase Freedom Unlimited® | 1.5% cash back on all purchases, including utilities. 5% cash back on travel purchased through Chase Ultimate Rewards®. 3% cash back on dining and drugstore purchases. | No annual fee, introductory APR offer, purchase protection, travel and emergency assistance services. Earning potential is simplified with a flat-rate structure, making it easy to accumulate rewards on all spending, including utilities. |
| Chase Sapphire Preferred® | 5x points on travel purchased through Chase Ultimate Rewards®. 3x points on dining, select streaming services, and online groceries. 2x points on all other travel purchases. 1x point on all other purchases, including utilities. | Valuable travel rewards, travel insurance, purchase protection, no foreign transaction fees, point transfer to airline and hotel partners, and an annual $50 hotel credit. Offers a compelling mix of travel and everyday spending rewards, making it suitable for those who prioritize travel benefits and want to earn bonus rewards on dining and online groceries. |
| Blue Cash Preferred® Card from American Express | 6% cash back on U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). 6% cash back on select U.S. streaming subscriptions. 3% cash back on U.S. gas stations and transit. 1% cash back on all other purchases, including utilities. | Strong cash back rewards on groceries, streaming, and gas, making it ideal for families with high spending in these categories. Purchase protection, return protection, and extended warranty. The annual fee is $0 intro annual fee for one year, then $95. The high rewards rate on groceries and streaming services can offset the annual fee if you spend enough in those categories. |
| Citi® Double Cash Card | 2% cash back on all purchases (1% when you buy, plus 1% when you pay). | No annual fee, simple rewards structure. Offers a straightforward and reliable way to earn cash back on all spending, including utilities, without having to track bonus categories. This card is a good option for those who prefer a simple and consistent rewards program. |
| Discover it® Cash Back | 5% cash back on rotating categories each quarter (up to a quarterly maximum of $1,500 in purchases, then 1%). 1% cash back on all other purchases, including utilities. | No annual fee, rotating 5% cash back categories, Discover match (matches all the cash back you've earned at the end of your first year). Requires actively tracking and maximizing the rotating categories to get the most value. The Discover match feature can provide a significant boost to your cash back earnings in the first year. |
| U.S. Bank Cash+® Visa Signature® Card | 5% cash back on two categories you choose each quarter (up to $2,000 in combined purchases each quarter, then 1%). 2% cash back on one everyday category you choose (gas stations, grocery stores, or restaurants). 1% cash back on all other eligible purchases, including utilities. | No annual fee, choose your own 5% and 2% cash back categories. Offers flexibility in choosing your rewards categories, allowing you to tailor the card to your specific spending habits. Requires actively managing your category selections each quarter. |
| Wells Fargo Active Cash® Card | 2% cash back on purchases | No annual fee, cell phone protection (when you pay your cell phone bill with the card). Offers a straightforward and reliable way to earn cash back on all spending, including utilities, without having to track bonus categories. The cell phone protection is a valuable added benefit. |
Detailed Explanations
Chase Freedom Unlimited®: This card offers a straightforward rewards structure with 1.5% cash back on all purchases, making it a solid choice for utility bills. You also receive 5% cash back on travel purchased through Chase Ultimate Rewards® and 3% cash back on dining and drugstore purchases. The card comes with no annual fee, making it an accessible option for earning rewards on everyday spending. Additionally, introductory APR offers can help you manage expenses without accruing interest for a limited time.
Chase Sapphire Preferred®: If you're a travel enthusiast, this card is a strong contender. While it only offers 1x point on utility bills, the 5x points on travel purchased through Chase Ultimate Rewards® and 3x points on dining, select streaming services, and online groceries are highly valuable. The points can be transferred to various airline and hotel partners, significantly increasing their value. The card also includes travel insurance, purchase protection, and no foreign transaction fees, along with an annual $50 hotel credit.
Blue Cash Preferred® Card from American Express: This card shines when it comes to specific categories. You'll earn 6% cash back on U.S. supermarkets (on up to $6,000 per year in purchases, then 1%) and select U.S. streaming subscriptions, along with 3% cash back on U.S. gas stations and transit. While utility bills earn only 1% cash back, the high rewards rate on groceries, streaming, and gas can easily offset the annual fee of $95 if you spend enough in those categories. Purchase protection, return protection, and extended warranty are additional perks.
Citi® Double Cash Card: For simplicity, the Citi® Double Cash Card is hard to beat. It offers 2% cash back on all purchases (1% when you buy, plus 1% when you pay), making it a reliable way to earn rewards on utility bills without worrying about bonus categories. The card has no annual fee, making it an attractive option for those who prefer a straightforward rewards program.
Discover it® Cash Back: This card features rotating 5% cash back categories each quarter (up to a quarterly maximum of $1,500 in purchases, then 1%). While utility bills are typically not a bonus category, it's worth checking the quarterly calendar to see if they ever qualify. The Discover match feature, which matches all the cash back you've earned at the end of your first year, can provide a significant boost to your earnings. The card also has no annual fee.
U.S. Bank Cash+® Visa Signature® Card: This card offers a unique level of customization. You can choose two 5% cash back categories and one 2% cash back category each quarter (up to $2,000 in combined purchases each quarter, then 1%). While utilities are unlikely to be a 5% category, you can select categories that align with your other spending habits. The card has no annual fee.
Wells Fargo Active Cash® Card: This card provides a simple and consistent rewards structure, offering 2% cash back on all purchases. This makes it a solid choice for earning rewards on utility bills without the hassle of tracking bonus categories. The card also includes cell phone protection when you pay your cell phone bill with the card, adding a valuable benefit. There is no annual fee associated with this card.
Frequently Asked Questions
Which credit card is best for paying utility bills? The best card depends on your spending habits. Consider the Chase Freedom Unlimited® for a flat-rate reward, or the Citi® Double Cash Card for a simple 2% back on everything.
Can I pay my utility bills with a credit card? Yes, most utility companies accept credit card payments, but some may charge a small processing fee. Check with your utility provider for their accepted payment methods.
Do credit card rewards apply to utility bill payments? Yes, you'll earn rewards according to the card's rewards structure when paying utility bills, unless specifically excluded in the terms and conditions.
Should I use a rewards credit card even if there's a fee? If the rewards you earn outweigh the fee, then it can be worthwhile. Calculate your potential rewards based on your spending habits to determine if it's beneficial.
What are rotating category credit cards? These cards offer bonus rewards in different spending categories each quarter. You need to activate the bonus categories each quarter to earn the higher rewards rate.
Conclusion
Choosing the best credit card for utilities involves considering your spending habits and reward preferences. The Chase Freedom Unlimited® and Citi® Double Cash Card offer straightforward rewards on all purchases, while the Chase Sapphire Preferred® and Blue Cash Preferred® Card from American Express provide bonus rewards in specific categories. Evaluate your spending and desired rewards to make the most informed decision and turn your utility payments into valuable benefits. Ultimately, selecting a card that aligns with your overall financial strategy will lead to the greatest rewards.