If you’re reading this, chances are you’re already doing all the right things when it comes to maximizing your living expenses. This probably includes using the right credit cards when you eat out or buy groceries. Maybe you’ve even set up automatic payments for utility bills and insurance premiums.
But, there are many big purchases that you may be completely overlooking. Here are some common expenses you may not have realized you can pay with a credit card.
Related: The best credit cards for everyday use
Housing costs
Housing is one of the biggest expenses for most of us, and luckily, you can score points for it. With a service like Plastiq, you can pay your rent or mortgage with a credit card. The service charges up to 2.9%, but you can earn 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 for mortgage payments.
In addition, the Bilt Mastercard® allows cardholders to earn Bilt Points when paying rent without service fees (see rates and fees). With the Bilt Card, you can earn rewards on rental payments (up to 100,000 Bilt Points per calendar year) without paying a service fee (see rates and fees and Bilt Rewards and Benefits).
To learn more, check out our full Bilt Mastercard review.
TPG founder Brian Kelly is Bilt’s advisor and investor.
Related: Can you pay rent with a credit card? Everything you need to know
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Shares
What you may not realize 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 buy Stockpile gift cards, which can be redeemed as stock.
You cannot 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 them just to earn miles, you could end up in serious financial trouble. Always research your options thoroughly before investing in any stocks.
A few years ago, I used a now-defunct site called Loyal3 to buy blue-chip stocks to meet the card’s spending requirement. The company didn’t charge any fees for credit card purchases, and I actually ended up making a small profit when I sold all the stock I bought with my card.
Buying shares with a credit card can be beneficial to meet the spending requirement.
Related: Got a new credit card? Here are 4 tips to help you earn your welcome bonus
A car (or at least part of it)
If you’re looking for a set of shiny new wheels, you know they won’t come cheap. Fortunately for you, you can pay for these purchases with a credit card.
This is a case-by-case scenario, but some car dealerships will let you buy a car with a credit card – or at least pay a down payment. Some sellers may charge you a transaction fee, so you’ll want to work this out before you get too far into the buying process.
Tesla actually allows customers to pay for the first order with a credit card. When I bought my Model 3, it was $1,000, but now it’s down to $250. While that won’t earn you very many points or miles, it can help jump-start your progress toward the welcome bonus.
Related: 3 ways to get approved for a car or apartment loan as a college student
Taxes
Taxes should be an expense that everyone dislikes. But they are unavoidable, and the fact that we can pay taxes with a credit card takes the sting out of the job. Currently, the lowest credit card interest rate is 1.82%. Depending on which credit card you use, it can be really helpful.
For example, 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 up to $20,000 spent in the first year.
If you combine Chase Freedom Unlimited with an Ultimate Rewards card, such as the Chase Sapphire Preferred® Card, your return could be 3.08%, according to TPG’s calculations for November 2024. So even if you’re paying a 1.82% fee on your payment of tax, you will come out with a profit of 1.26%.
If you’re saving Membership Rewards points for higher redemptions, then charging your tax bill to a card like the Blue Business® Plus Credit Card from American Express may 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 valuation puts Membership Rewards points at 2 cents each, for a 4% return on your tax bill, which far outweighs the 1.82% fee.
Related: What you need to know about paying taxes with a credit card
Medical bills
Medical bills are often identified as the largest portion of consumer debt. With high credit card interest rates, charging these fees to a credit card is not worth it. But if you can get reimbursed by your health insurance company or health savings account, then you will definitely want to charge those bills to a credit card.
Whether it’s a trip to the dentist or a doctor’s copay, you should try to charge all of your medical expenses to a credit card if you can. Even if it’s a small copay, it all adds up.
Best of all, I have yet to meet a health care provider who charges credit card fees. However, do not think that this is the case. Double check before swiping your card.
Related: 7 things to consider when choosing a credit card for bulk purchases
Lesson
Whether you’re a student or have children currently in college, chances are tuition fees aren’t something you look forward to each semester.
That’s why it’s worth checking with your educational institution to see if they accept credit card payments. You can easily earn tens of thousands of points or miles each semester for the cost you’ll get anyway.
Before doing that, make sure you check the fees. Although many universities charge a convenience fee when you pay for tuition by credit card, some do not. If yours falls into the latter category, consider yourself lucky and use a card that earns more rewards for everyday use.
Or, use those payments to meet spending requirements for more welcome bonuses.
Related: How to pay college tuition with a credit card
Fund a bank account
If you’re looking to switch banks or take advantage of checking account bonuses, you can expand this process by funding your bank account with a credit card.
That’s right – when you open a bank account, you’ll be given several options for getting money. Most people will use a debit card, but some banks allow you to use a credit card.
I once did this when I funded a new checking account and was able to charge $500 to my Chase Freedom Unlimited. I got $7.50 worth of cash back, but since I have the Chase Sapphire Preferred card, I can convert that to 750 High Rewards points. It’s not a huge draw, but Ultimate Rewards points are very valuable, and they all count.
Keep in mind that some banks will charge an early fee if you use your credit card to fund a checking account. One way to avoid this is to find out what your credit limit is in advance. Then, try using the card to fund your account at a higher rate. If the transaction is declined, you will know that it is being coded as a cash advance.
Related: Get closer to flight status (and your next trip) when you open this savings account
Girl Scout Cookies
It’s a good rule of thumb that when 10-year-olds show up in your office building to fuel your Tagalongs addiction, you buy a minimum of 10 boxes. Also, you can buy Girl Scout cookies online with a credit card.
Today, every Girl Scout has a web form provided where you can pay for cookies while giving them credit for sales. It’s likely that the Girl Scouts will continue to push the online platform during the next sales cycle, which will be good news all around.
Related: Best credit cards for online shopping
Dog walking service
If you’re busy working from home while caring for your own Points Pup, you may find yourself using a dog walker more often than ever. The good news is that if you use a service like Rover.com, you can pay for your dog walk with a credit card. You can even earn bonus points or cash back on these expenses.
In the past, Amex Offers used deals on the Rover, when it offers $10 on $50 spent, which is great. Rover has a referral program, which allows you to get a $20 credit if you refer a friend to the site.
Related: From pet bills to dog food: Earn points, miles and cash back rewards on pet expenses
Bottom line
All of the above mentioned expenses are great and can really help you increase your rewards balance for your next dream vacation. You’ll want to consider the additional fees involved in paying some of these expenses with a credit card and make sure the rewards you’re earning are worth it.
As with any purchase, remember to pay your card in full each month to avoid interest charges.
Related: 10 tips for TPG rewards credit card
See Bilt Mastercard rates and fees here.
See Bilt Mastercard rewards and benefits here.
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