Everyone pays some form of bill or utility at some point in their life. Why not use this utility or bill to gain rewards and boost your credit!
Simply put:
Set up your bills to go to a cash back credit card that will provide you rewards points for mandatory spending. This will also provide a boost to your credit score by constantly having a balance and paying it off. This cost you no extra money and will pay you back in two ways.
Simple explanation:
Since bills and utilities are essentially a mandated expense, why not earn cash back and help your credit score out at the same time?
By having a bill/utility be charged to your credit card. You will have a balance each month for a bill you have to pay no matter what.
You will earn points back and earn a balance that you pay off after a few weeks (BEFORE interest is incurred).
Simple example:
Let’s say that your cell phone bill is $100 even a month after taxes and fees. A typical credit card averages about 1-2% back on all purchases! This means that you will earn a dollar or so back each month for that 1 bill! Now multiply this by all your bills at 1%. Certain bills are harder to get away with this, such as your car payment or house payment strictly because of this loophole.
Let’s say you have the following bills/utilities that each cost $100 after taxes and fees:
- Insurance for cars
- Gas
- Cell phone
- Electric
- Water and sewer
- Trash /recycling
- Internet /cable
- Think of your other reoccurring payments
That’s at minimum $7 dollars per month that you could be making doing NOTHING differently except paying with a credit card. Literally free money and your credit WILL go up! Save the seven dollars or treat yourself to a sundae or whatever. This is what HNTSS is all about! I highly suggest you read it.
Simple automation:
Set your credit card to pay the full amount automatically near the end of the statement month! This will ensure that you pay the bill on time AND that the credit card company has reported to the credit bureaus that you owe $x.xx amount to them. This report IS NOT a bad thing! This is GOOD! because this is how you build credit! With the autopay set from your regular checking account to the credit card paying the bills, your credit WILL rise like the Phoenix it is.
Simple note:
You DO NOT need to ever pay a card interest or keep a running balance in order to build credit. I have NEVER paid interest on a credit card and will do everything in my power to never do so. That is a SICK rumor put forward by credit companies before the modern Era so they could profit. All you need is a balance long enough for the company to report that you owe them and that is it.
Simple conclusion:
Paying a bill or utility with a credit card will change your life, literally.
You’ll earn free money and build your credit. It isn’t a bad thing as you just pay the credit card AFTER the company’s statement releases (typically 2 weeks or 14 days time) and you will have incurred NO interest and paid the amount you owe… But now with some amount of points back.
Does this method sound maddening? It kind of is to the credit companies. This has the potential to boost your savings and income to do whatever you want.
Simple Money 