Paying utility bills such as electricity, water, gas, and internet is a regular part of life for most people. These expenses can quickly add up, significantly impacting your monthly budget. However, one often overlooked way to save on utility bills is by using cashback credit cards. By selecting the right card and leveraging its benefits, you can maximize your savings and earn cashback rewards for every utility payment you make. In this article, we’ll explore the top cashback credit cards that can help you reduce the impact of your utility bills, providing an overview of the features, benefits, and how to choose the best card for your needs.
How Cashback Credit Cards Work for Utility Bills
Cashback credit cards reward cardholders with a percentage of their purchases as cashback. When you use these cards to pay for utilities, you essentially earn a portion of the payment back. While some cards offer fixed cashback percentages, others provide category-specific rewards that can be particularly advantageous when paying utility bills. By choosing the right card, you can earn substantial cashback on recurring expenses, including utility bills, which can add up over time.
1. Citi Double Cash Card
The Citi Double Cash Card is one of the most popular cashback cards available, thanks to its simple and straightforward rewards structure. This card offers a flat 2% cashback on all purchases—1% when you make the purchase and an additional 1% when you pay it off. This makes it an excellent option for paying utility bills, as you can earn cashback on every payment without needing to worry about rotating categories or spending limits.
Key Benefits:
- 2% cashback on all purchases: Earn 1% on purchases and 1% when you pay for them.
- No rotating categories or caps: With 2% cashback on all purchases, including utility bills, it offers consistent rewards.
- No annual fee: This card comes with no annual fee, making it easy to enjoy cashback without extra costs.
For those looking for a simple and reliable cashback card, the Citi Double Cash is an excellent choice to maximize savings on utility bills.
2. Blue Cash Preferred® Card from American Express
The Blue Cash Preferred® Card from American Express offers exceptional rewards for everyday spending, particularly for paying utility bills. With this card, you can earn 6% cashback on select purchases, including streaming services and U.S. supermarket purchases, but the most notable category for utility payments is the 3% cashback on U.S. gas station purchases. While utility bill payments themselves aren’t specifically categorized for the highest rewards, this card is still a great option for gas-related utilities, such as heating costs or electric vehicles.
Key Benefits:
- 6% cashback on select purchases: 6% cashback on purchases made at U.S. supermarkets (up to $6,000 per year) and streaming services.
- 3% cashback at U.S. gas stations: This is beneficial for paying energy bills, particularly for households with electric cars or vehicles used for heating.
- Introductory offer: New cardholders can earn a $250 statement credit after spending $3,000 in purchases within the first 6 months of card membership.
- Annual fee: $95 (waived for the first year).
If you’re looking for a card that offers high rewards for grocery shopping and select categories, including utilities related to gas and energy, this card is an excellent choice.
3. Chase Freedom Unlimited®
Chase Freedom Unlimited® is a versatile cashback credit card offering a combination of a generous rewards program and no annual fee. It provides 1.5% cashback on all purchases, including utility bills. However, if you’re a Chase customer who has a linked account, you may be able to maximize your cashback by combining the rewards with other Chase benefits like Ultimate Rewards points for travel or higher cashback tiers on select categories.
Key Benefits:
- 1.5% cashback on every purchase: Earn cashback on all purchases, including utility bills, with no restrictions on categories.
- No annual fee: This card is ideal for those who want to earn cashback without an annual fee eating into their savings.
- Introductory offer: 5% cashback on the first $12,000 spent in the first 3 months (on travel purchased through Chase Ultimate Rewards).
- Special financing options: The option to use financing on select purchases can help you manage your utility payments.
While this card does not offer the highest cashback rates on utility bills specifically, its broad rewards structure and no annual fee make it a great choice for consistent cashback accumulation.
4. Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card is another great option for those looking to maximize cashback rewards on utility bill payments. This card offers a simple, straightforward 2% cashback on all purchases, including utility bills, with no rotating categories or limitations. Additionally, the card comes with no annual fee, making it a low-maintenance choice for earning cashback without extra costs.
Key Benefits:
- 2% cashback on all purchases: Whether you’re paying utility bills, buying groceries, or shopping online, you earn 2% cashback on every dollar spent.
- Introductory offer: Earn a $200 cash rewards bonus after spending $1,000 in the first 3 months.
- No annual fee: This card is ideal for those who want cashback without worrying about additional fees.
- Cell phone protection: The card offers up to $600 protection on cell phones when you pay your bill with the card.
For people who want a simple and effective way to earn cashback on their utility bills, the Wells Fargo Active Cash® Card is an excellent choice.
5. Discover it® Cash Back
The Discover it® Cash Back card offers rotating 5% cashback categories that change quarterly. While utility bill payments are not specifically included, you can take advantage of the 5% cashback categories when they align with your spending. For instance, some categories may include home improvement stores, grocery stores, or gas stations, where you may purchase supplies related to utilities or energy needs.
Key Benefits:
- 5% cashback on rotating categories: Activate each quarter to earn 5% cashback on up to $1,500 in purchases in select categories (activation required).
- 1% cashback on all other purchases: If utility bill payments aren’t part of a rotating category, you still earn 1% cashback on those charges.
- Introductory offer: Discover will match all the cashback you’ve earned in the first year, effectively doubling your rewards.
- No annual fee: This card doesn’t come with any extra fees, keeping your costs low.
If you’re willing to keep track of rotating categories, this card can help you earn substantial cashback during certain months, making it worthwhile for utility-related purchases when the categories align.
6. U.S. Bank Cash+™ Visa Signature Card
The U.S. Bank Cash+™ Visa Signature Card is a unique cashback card that lets you choose 2 categories to earn 5% cashback each quarter, which can include utility-related categories such as home improvement stores or cell phone providers. With 1% cashback on all other purchases, this card is highly customizable, allowing you to optimize your rewards strategy.
Key Benefits:
- 5% cashback on 2 categories of your choice: This can include utility bill-related categories such as home improvement stores or telecommunications.
- 2% cashback on one everyday category: Choose categories like gas stations or grocery stores to earn extra cashback.
- No annual fee: The card comes with no annual fee, making it an affordable option for cashback rewards.
- Introductory offer: $150 bonus after spending $500 in the first 3 months.
This card is ideal for people who want the flexibility to choose categories that suit their spending habits, including those who want to maximize savings on utility bills.
Conclusion: Maximizing Your Savings on Utility Bill Payments
Utility bills may seem like an unavoidable expense, but with the right cashback credit card, you can earn rewards that help reduce the financial burden. From flat-rate cashback cards like the Citi Double Cash and Wells Fargo Active Cash® to specialized options like the Blue Cash Preferred® Card, there’s a card that can cater to every type of utility payment.
When selecting a credit card, consider your spending habits, including which utility bills you pay and whether the card offers specific rewards for those purchases. By strategically using these cashback credit cards, you can make your monthly utility bills work harder for you, providing long-term savings and rewards.
