Can you pay bills with a credit card?
Written by
Emily Tye
Reviewed by
Amy LancashireYes, you can pay many household bills with a credit card, but it depends on the provider. Broadband and insurance tend to be straightforward. Utilities and council tax vary: some providers accept credit cards, others only take direct debit or debit cards. Rent, mortgages and HMRC personal tax are harder to pay this way, though there are alternatives.
Whether it's worth doing depends on how you manage your card. If you clear your balance in full each month, the risks are low and there are genuine benefits. If you don't, the interest you pay will outweigh them. Our guide to how credit cards work is a good place to start if you want the full picture first.
Which bills can I pay with a credit card?
Most standard household bills accept credit card payments online or by phone. Here's what you can typically pay by card:
Subscriptions and memberships (i.e. streaming services and gym memberships)
Broadband and mobile
Water
TV licence
Insurance (e.g. car, home, contents)
Gas and electricity: credit card acceptance varies between energy suppliers. Octopus Energy, for example, explicitly accepts credit or debit card payments online, but not all suppliers do. Where direct debit is an option, it's worth knowing it often comes with a cheaper tariff (more on this in the fees section below).
Council tax: most local councils accept credit card payments through their online portals. Check your council's website to confirm.
Which bills can't I pay directly with a credit card?
Three main categories of bills are harder to pay by card:
Rent: most private landlords and letting agents don't accept credit card payments directly. Some third-party bill payment services let you pay rent by credit card, with the platform passing the payment on by bank transfer. These services charge a fee.
Mortgage: almost no UK mortgage provider accepts direct credit card payments. A money transfer credit card can move credit to your current account to cover a payment, but money transfers carry their own fees and interest terms.
HMRC personal tax: personal credit cards are not accepted for self-assessment, VAT, Corporation Tax and other taxes. You can still pay by personal debit card at no extra charge, or by bank transfer or direct debit. Corporate credit cards are still accepted, with a non-refundable processing fee. The full list of accepted payment methods is on the HMRC tax payment page.
Will I be charged a fee for paying bills with a credit card?
In most cases, no. Since January 2018, UK businesses have been prohibited from charging consumers extra for paying by credit or debit card (including Visa, Mastercard and American Express) under the Payment Services Regulations 2017. You should not see a surcharge added when paying a household bill by card.
However, there is a related cost that's easy to miss. Many energy suppliers and utility providers offer a lower tariff to customers who pay by direct debit. If you switch to paying by credit card instead, you may no longer qualify for that discount. The difference varies by provider but can add up across multiple bills each month.
What are the benefits of paying bills with a credit card?
Cash flow flexibility: a credit card gives you a gap between paying a bill and repaying the card. If your salary lands after a bill is due, this can help with timing without you going into an overdraft.
Rewards and cashback: some credit cards earn points or cashback on spending, but check your card's terms to confirm, as not all programmes work the same way.
Credit history: using a credit card for regular bills and paying the full balance each month builds a track record of reliable borrowing, which can support your credit score over time.
What are the risks of paying bills with a credit card?
Interest charges: if you carry a balance from month to month, interest will accrue on every bill you've put on the card. Our guide to credit card interest explains exactly how the charges are calculated.
Credit utilisation: putting large bills on your card increases your credit utilisation ratio (how much of your credit limit you are using). A high ratio can negatively impact your credit score.
Losing direct debit discounts: switching from direct debit to credit card for energy or utility bills may mean losing a cheaper tariff, as covered in the fees section above.
How do I pay a bill with a credit card?
There are 2 main ways:
One-off payment: log in to your provider's website or call their billing line. Enter your card number, expiry date and CVV when prompted. The payment is taken immediately.
Recurring payments via continuous payment authority (CPA): some providers let you store your credit card details for automatic monthly billing. A CPA is different from a direct debit. With a direct debit, payments are processed through the Bacs scheme and you're protected by the Direct Debit Guarantee, which gives you the right to an immediate refund from your bank if a payment is taken in error. CPAs aren't covered by that guarantee. With a CPA, the provider holds the payment authority directly. It's worth understanding the difference before setting one up.
FAQs
There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
