While I wouldn't recommend putting anything on credit if you don't have the means to pay for it, using credit cards for rewards is a financially savvy move for those who do have funds in their bank account to pay credit card bills in full.
When you're unable to pay directly by credit card, here are a few reasons to use Plastiq:
- Plastiq is a great way to rack up credit card rewards without spending more than you normally budget. Some people are reporting that rent and mortgage payments may code as travel for bonus categories on other cards. With fee-free dollars, you’re earning rewards for free. It’s a no-brainer way to pay bills like mortgage, utilities, student loans, taxes, etc.
- Plastiq is a convenient way to consolidate all bill payments to a single service and/or credit card
- It is safer to pay by credit card for services or goods not yet fully delivered because it gives you the ability to initiate a credit card chargeback if the payee doesn’t deliver as promised.
- Plastiq makes it possible to pay bills when you do not have the cash readily available. While it is never a good idea to go into credit card debt, paying by credit card can give you more time to get the required funds.
Note: Your first $500 in payments will be subject to the regular fee. Interestingly, the terms do not seem to stipulate that you must make that initial $500 in payments via credit card — meaning that you could make the first $500 in payments via debit card (at a 1% fee) rather than via credit card (at a 2.5% fee).
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