In India, paying your bills using a credit card can earn you numerous rewards. In addition, you can use it to settle your electricity bills too.
Furthermore, a sizeable percentage of your weekly expenses are related to electricity. There are many customers who prefer to pay their bills online through the service provider’s website or via net banking.
However, nowadays, credit card companies are encouraging their customers to use credit card to pay their electricity bills. There are several advantages to this option, which we will discuss further below.
Benefits of Paying Your Electricity Bill with a Credit Card
Some of the advantages of electricity bill payment by credit card include the following points.
- Payment Ease via Automatic Setting
By giving written instructions to your card issuer, you can set up automatic payments for your electricity bills using your credit card. This eliminates the need for manual payment processing and ensures swift payment. Once you activate this feature, your card will automatically pay your electricity bill on a predetermined date each month.
- It Aids in Preventing Fines and Late Fees
Missing payment deadlines can result in late payment fees. However, setting up automatic payments on your credit card ensures that your electricity bills are always paid on time, giving you peace of mind. This is a smart and convenient way to avoid late fees or penalties when paying your electricity bills.
- It Helps to Accumulate Rewards Points
Another advantage of paying your electricity bill with your credit card is the potential to earn rewards. Most popular credit cards in India offer 5x reward points based on the amount spent using the card. These reward points can be redeemed for exciting shopping coupons, cashback, rebates, and other rewards.
- Provides Better Financial Control
Additionally, electricity bill payment by credit card gives you more financial control. This makes it simpler for you to keep track of your spending thanks to your monthly Credit Card statement. Additionally, it gives you financial self-control so you can concentrate on your financial objectives in a better way.
- It Improves Credit Score
You raise your credit score when you use your credit card to pay your electricity bills each month. Over time, this prudent credit utilisation can increase your qualifying for a variety of lending products.
- It Provides Additional Safeguards
Credit card provides added security in case you are billed an incorrect amount by the electricity company. The Fair Credit Billing Act enables you to dispute any errors on your credit card bill. If the supplier is unable to resolve the issue, you can contact your credit card company immediately.
After investigating the transaction, the credit card company will either refund the incorrect amount or provide a justification for the charge’s accuracy. Additionally, using a credit card provides greater peace of mind compared to using a check or debit card, as the level of security is not the same.
- Payments Post Swiftly
Credit card payments for electricity bills usually show up in one or two working days. Unlike check payments, which must be mailed, delivered to the appropriate party, deposited, and then patiently waiting for final approval.
How to Pay an Electricity Bill with a Credit Card?
The process of paying an electricity bill with a credit card is fast and easy. Most of the time, top institutions have an inventory of all the leading electricity and other utility suppliers. The steps on how to pay an electricity bill through a credit card are:
- Select the energy biller from the bank’s catalogue of billers
- Enter information such as the customer identification number and the bill amount.
- Select “Credit Card” as the payment option
- Input your card information and complete the payment
Conclusion
Electricity bill payment by credit card simplifies the entire procedure. There are many additional benefits in terms of ease and incentives from doing this. On the other hand, if you are comfortable with paying little transaction fees, settling your electricity bills with a credit card can be a great option.