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Expenses you didn’t know you could pay for with a credit card

November 17, 2024

Expenses you didn’t know you could pay for with a credit card

If you’re reading this, chances are you’re already doing all the right things when it comes to maximizing your living expenses. This likely includes using the right credit cards when dining out or shopping for groceries. Perhaps you’ve even set up autopay for utility bills and insurance premiums.

But, there are lots of big purchases that you may be overlooking completely. Here are some common expenses you may not have realized you can pay for with a credit card.

Housing expenses

Housing is one of the biggest expenses for most of us, and luckily, you can earn points on it. Through a service such as Plastiq, you can pay your rent or mortgage with a credit card. The service does charge a fee of up to 2.9%, but you can earn Fee-Free Dollars by signing up with a referral link and referring others.

Plastiq accepts all major credit cards, although you can only use Mastercard and Discover cards for mortgage payments.

Additionally, the Bilt Mastercard® allows cardholders to earn Bilt Points when paying rent with no transaction fees (see rates and fees). With the Bilt card, you can earn rewards on rent payments (up to 100,000 Bilt Points in a calendar year) without paying the transaction fee (see rates and fees and Bilt Rewards and Benefits).

To learn more, check out our full review of the Bilt Mastercard.

TPG founder Brian Kelly is a Bilt adviser and investor.

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Stocks

What you may not be aware of is that you can actually buy stocks with a credit card. Through a company called Stockpile, you can use a Visa or Mastercard credit card to purchase Stockpile gift cards, which can be redeemed for stock.

You can’t use American Express cards for gift card purchases. Stockpile gift cards are not available in Connecticut.

However, trading stocks is risky, and if you get into it just to earn miles, you can end up in a lot of financial trouble. Always thoroughly research your options before investing in any stocks.

A few years ago, I used a now-defunct site called Loyal3 to purchase blue-chip stocks to meet the spending requirement on a card. The company didn’t charge any credit card transaction fees, and I actually ended up making a small profit when I sold all the stock I purchased with my card.

Buying stocks with a credit card may be worthwhile in order to meet a spending requirement.

A car (or at least part of it)

If you’re in the market for a shiny new set of wheels, you know it’s not going to be cheap. Luckily for you, you may be able to pay for this purchase with a credit card.

This is a case-by-case scenario, but some car dealerships will allow you to buy a car with a credit card — or at least cover the down payment. Some dealerships may charge you a transaction fee, so you’ll definitely want to sort this out before getting too far into the buying process.

Tesla actually allows customers to pay the initial order fee with a credit card. When I bought my Model 3, this fee was $1,000, but now it’s down to $250. While that won’t earn you too many points or miles, it can help jump-start your progress toward a welcome bonus.

Taxes

Taxes have to be everyone’s least favorite expense. But they are inevitable, and the fact that we can pay taxes with a credit card takes the sting out of this chore. Currently, the lowest fee for credit card payments is 1.82%. Depending on which credit card you use, it could actually be worthwhile.

For example, the Chase Freedom Unlimited® earns 1.5% cash back on all purchases outside of its bonus categories. New cardholders can earn an additional 1.5% on all purchases on up to $20,000 spent in the first year.

If you combine the Chase Freedom Unlimited with an Ultimate Rewards-earning card, such as the Chase Sapphire Preferred® Card, your potential return is 3.08%, per TPG’s November 2024 valuations. So even if you’re paying a 1.82% fee on your tax payment, you’ll come away with a 1.26% profit.

If you’re saving up Membership Rewards points for a high-end redemption, then charging your tax payment to a card such as The Blue Business® Plus Credit Card from American Express might also make sense.

The card earns 2 points per dollar on the first $50,000 in purchases spent each calendar year, then 1 point. TPG’s valuations place Membership Rewards points at 2 cents each, so you’d earn a 4% return on your tax payment, which far exceeds the 1.82% fee.

Medical bills

Medical bills are frequently cited as the biggest portion of consumer debt. With high credit card interest rates, charging these expenses to a credit card isn’t advisable. But if you can get reimbursed by your health insurance company or health savings account, then you’ll definitely want to charge those bills to a credit card.

Whether it’s a trip to the dentist or a prescription copay, you should try to charge all of your medical expenses to a credit card when you can. Even if it’s just a small copay, it all adds up.

Best of all, I have yet to encounter a health care provider who charges a fee for credit card transactions. Don’t assume this to be the case, though. Double-check before swiping your card.

Tuition

Whether you’re a student or have kids currently in college, chances are tuition payments are not something you look forward to every semester.

That’s why it’s absolutely worth checking with your academic institution about whether they accept credit card payments. You could easily earn tens of thousands of points or miles every semester for an expense you were going to incur anyway.

Before you do, be sure to look into fees. While many universities do charge convenience fees when you pay tuition with a credit card, some of them do not. If yours falls into the latter category, consider yourself lucky and use a card that earns the most rewards on everyday spending.

Or, use those payments to hit the spending requirements for multiple welcome bonuses.

Fund a bank account

If you’re looking to switch banks or take advantage of checking account welcome bonuses, you can maximize this move by funding your bank account with a credit card.

That’s right — when opening a bank account, you’ll be presented with a few funding options. Most people will use a debit card, but some banks do allow you to use a credit card.

I once did this when funding a new checking account and was able to charge $500 to my Chase Freedom Unlimited. I earned $7.50 worth of cash back, but since I also have a Chase Sapphire Preferred Card, I can convert that to 750 Ultimate Rewards points. It’s not a huge haul, but Ultimate Rewards points are incredibly valuable, and every bit counts.

Keep in mind that some banks will charge a cash advance fee if you use your credit card to fund a checking account. The way you can avoid this is by finding out what your cash advance limit is. Then, try to use the card to fund your account with a higher amount. If the transaction is declined, you’ll know that it’s being coded as a cash advance.

Girl Scout cookies

It’s pretty much the law that when 10-year-olds show up in your office building to fuel your Tagalongs addiction, you buy 10 boxes minimum. Plus, you can buy Girl Scout Cookies online with a credit card.

Nowadays, every Girl Scout has a designated web form where you can pay for cookies while giving them credit for the sale. Chances are the Girl Scouts will continue to push the online platform during the next sales cycle, which is going to be great news all around.

Dog walking service

If you’re juggling working from home while caring for your very own Points Pup, you may find yourself using a dog walker more often than before. The great news is that if you utilize a service like Rover.com, you can pay your dog walker with a credit card. You may even be able to earn bonus points or cash back on this expense.

In the past, Amex Offers has run deals on Rover, once offering $10 off of $50 spent, which is pretty substantial. Rover even has a referral program, allowing you to earn a $20 credit when you refer a friend to the site.