“We’ve made decisions like cancelling redundant gym memberships because of it.” Utilities, Internet, Cell Phone and Auto Insurance “That card is just for utilities, phone bills and subscriptions,” Wilson said. Using a credit card for recurring expenses on one credit card is helpful for both automating your bill paying and showing you where your money goes,” said Greg Wilson, a chartered financial analyst and co-founder of, a lifestyle blog about living happily on a budget. Of course, you want to be sure to pay it off each month, or those small expenses will incur interest. “The result is the card will stay active and reporting and effectively will always have a zero balance,” he said. Therefore, it’s best to go for small, recurring items such as your Netflix subscription or similar, and set it up for automatic payments, according to Jay Zigmont, founder of financial planning firm Live, Learn, Plan. The conundrum of credit cards: If you have open accounts, you need to use them in order to keep your credit score up.
“Doing this also helps you not go into debt, since these aren’t discretionary purchases where you can spend above and beyond what you were planning on spending.” Small Monthly Subscriptions “The reason for putting these expenses on your credit card is they are mandatory - you have to pay them - so you might as well get rewarded with cash back or airline miles,” he said.
#REGULAR BILLS TO PAY PLUS#
It also can be things like ongoing subscriptions from Netflix, Spotify, Disney Plus or other similar services. This includes expenses like your cell phone and internet bill.
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