Using your credit card to automate your bills is a great way to simplify your financial life while earning awesome rewards. Check out our tips on how to streamline your expense payments the smart way!

Assign 1 credit card for recurring bills only 

Make this process as smooth as possible by using a single credit card for all recurring expenses. You don’t use this card for any other purpose than to automate your bills.

With a single credit card, it makes it easy to check over your statement and monitor your bill payments. You’re not trying to remember what bill you paid with which card. 

It also means you only have to make transfers from your transaction account to one card to pay the balance.

Another smart tip is to set the maximum balance of your designated ‘expenses’ credit card not much higher than the total of your monthly bills. 

For example, if your recurring bills add up to $800 per month, opt for a $1000 limit on the card. This is just a simple way to keep your credit card balance in check. 


Choose a credit card rewards program you’ll actually use

When you automate your bills, it’s a great way to earn yourself credit card rewards and benefits every month. The key is choosing a rewards program that works for you. 

If you’re not a big traveller, signing up for a card with international travellers rewards and airline bonuses won’t be very helpful! Instead, you might enjoy more benefits with a card that gives instant rewards when you do your weekly grocery shop, for example. These types of rewards can be redeemed as store discounts or gift cards. 


Source: Kredmo website.

We let you easily compare offers with our credit card reward comparison tool. Discover an awesome rewards program that works for you!


Set up a transfer every month to pay the balance

Paying your credit card balance off in full every month is the smartest way to manage your card. 

Don’t fall into the trap of only making the minimum repayment when you automate your bills. The amount of interest you’ll pay will cancel out any benefit of streamlining your expense payments in the first place!

Instead, plan your monthly budget to cover all recurring expenses. 

During the month, expenses will be deducted from your card at different times. The internet might be paid on the 1st, the phone bill on the 15th, etc. 

The idea is to set up a direct transfer from your bank account to pay the balance in full at the end of the month. Or, you might do weekly or fortnightly payments that correspond with your pay dates, whatever works best for you. 

Alternatively, you can set up autopay via your credit card account online. Autopay authorises the card company to debit the full balance from your transaction account on a monthly basis. 

For example, if the total cost of bills for the month is $550, either set up a direct transfer to your credit card for $550 before the due date each month or an auto payment to simply pay the closing balance.


Don’t forget to review your monthly charges

When you automate your bills it doesn’t mean you can just “set and forget” the payments entirely. You should still review your credit card statement at the end of the month to check for any unusual activity or an increase of a bill.

Some providers give you the option to set up payment alerts too. This is a handy way to keep an eye on expenses without much effort. 


Case study: Amber automates her bill repayment

Amber wants to make her financial life simpler!

She’s always forgetting when bill payments are due. This means she’s often surprised by unexpected debits from her transaction account leaving her short on cash or with overdrawn fees. 

She decides automating her recurring expenses is the way to go. 

Step 1: Calculate the total amount of monthly recurring payments

Amber looks over the past few months of bills to work out her monthly fixed (or recurring) expenses. 

Internet: $50

Phone: $44

Electricity (bill smoothing): $60

Storage unit: $185

Netflix: $11.00 

Business email account: $15.00

Insurance: $100

Gym membership: $85

Wellness subscription box: $50 

Total: $600

Step 2: Choose a credit card with a great rewards plan 

Two of Amber’s bills are already debited from a credit card but she isn’t receiving any rewards. 

She researches reward programs and decides to choose a credit card that offers ‘lifestyle’ rewards, including discounts on movie tickets or dining out. Amber sets the card limit at $800, slightly above her monthly expense total.

Step 3: Update payment details for each service provider

Next, Amber logs on to her account on each provider website or calls customer service to update payment information to the new card. 

Step 3: Update payment details for each service provider

Next, Amber logs on to her account on each provider website or calls customer service to update payment information to the new card. 

Step 4: Set up payment to cover recurring expenses

Amber gets paid fortnightly. She sets up a payment from her transaction account to her credit card of $300 each fortnight on payday. $300 x 2 = $600 per month to cover the recurring expenses. 

Or she can set up auto payments from her credit card to specifically pay the closing balance ($600) each month.

Done! Amber can relax knowing her bill payments are under control and look forward to treating herself with those bonus credit card rewards!


Check out other similar articles:

Credit Card Hacks: If You Don’t Know Now You Know!

5 Cool Credit Card Benefits You Probably Didn’t Know Exist

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