Covering expenses such as utility bills, property insurance, and auto insurance premiums can be a significant financial burden. Many people rely on credit cards for the convenience they offer and some cashback rewards. However, the typical cashback rate for utility and insurance payments is usually only between 1-2%, which can be disappointing when facing these large recurring expenses. Fortunately, there are ways to increase your cashback rewards significantly, up to 5% or more. For example, if you spend approximately $10,000 per year on utility bills and insurance premiums, upgrading from a 2% cashback rate to 5% could result in savings of around $300 annually. This guide will walk you through various strategies to maximize your cashback opportunities, such as utilizing PayPal Bill Pay and gift cards, allowing you to save money on these essential payments effortlessly.
Earn Cashback With PayPal Bill Pay for Bills
While many utility and insurance companies don’t directly accept PayPal, you can still leverage the PayPal Bill Pay service. This feature allows you to pay your bills using PayPal, and you can fund these payments with credit cards that offer higher cashback rates for PayPal transactions.
How it works
- Login Paypal and link your eligible credit card to PayPal.
- Go to the page of pay bill
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- Search the companies you want to pay.
Maximize Cashback for Bill with Rotating Categories
Cards like Chase Freedom and Discover It often feature 5% cashback on PayPal purchases (Up to $1500 purchase) during select quarters. Keep track of these offers to maximize your rewards.
- Discover: Quarterly calendar is here
- Chase Freedom: Quarterly bonus category is here
- Citi Dividend: Quarterly bonus category is here
Each family member can have both a Discover It and Chase Freedom credit card. By using PayPal Bill Pay to pay a total of $6000 ($1500 for each card held by two individuals), you could potentially earn $300 cash back.
Earn Cashback with Discounted Visa/Mastercard Gift Cards
Another smart tactic is using discounted or cashback-eligible Visa or Mastercard gift cards to pay your bills. These gift cards act as flexible payment methods and can often be purchased during promotional sales offering cashback or discounts.
How to Use Gift Cards:
- Buy Visa/Mastercard gift cards from stores/websites during promotional periods using a credit card with category rewards. [visa/mastercard/amex deals]
- Use the gift card to pay your utility or insurance bills directly or through online portals.
Key Tips:
- Look for promotional offers like no activation fee on gift cards or cashback rewards from your credit card for certain store purchases.
- Keep track of card balances to avoid small leftover amounts.
