Bill Hacking

[bg85]

Not sure which forum to put this in but here it goes.

What creative ways do you use to pay your bills and other unavoidable expenses (gas, groceries, etc) in order to maximize the reward (either through a discount, credit card rewards, or miles)?

I've developed a couple of strategies spelled out below but I'm sure somebody is doing something better:

Note: Opportunity cost is 2% since if I just straight up pay my bills with my best credit card then I'll get 2% cash back. My goal is to do better than that with minimal effort on my part.

1) Internet bill is $40 /month. I've been paying this through gift cards received from rebates of FAR SW. I usually pick up whatever SW is FAR through a portal, get the rebate, and resell the item if possible. This has been netting 8-20% so far.

2) Gas. Walmart is usually the cheapest in town or at least within a few cents. I buy discount GC (Cardpool, etc) using my reward credit card. Walmart gives an additional $.02 off per gallon when using a GC. This results in approx 6.15% discount (3.5% discount on GC, 2% CC reward, .67% discount for using GC based on $3 /gallon gas).

These are small wins but they're easy to implement and its kind of fun to work on maximizing these things.

 

[DebentureBoy]

Sort of along these lines, I pay my utility bills with multiple debit cards to satisfy rewards checking account activity requirements.

Every now and again, I'll pay a bill using money orders as just another way of liquidating them.

 

[credipig]

I recently discovered USAA allows me to pay my insurance bill with a credit card. I use my Fidelity AMEX for 2% back.

 

[loves2fly]

I have Disc Open Road card that every now and then, sends me offers like spend $500 a month for x# of months, get back $150. I buy a GC to meet the requirement and collect my CB later. Offers from DiscOR are targetted offers depending on one's card usage and how long you've had it. Some have higher offers, others don't get offers at all.

 

[Unifer]

I would argue the opportunity cost is 5% for phones, internet, and cable TV since Chase Ink Bold/Plus gives you 5x UR points (which equates to 5% cash back) on paying those bills, up to $50k a year.

For me, after getting burned a few times by FAR SW that never paid me, I've stopped dealing with it altogether.

If you've got a good 2% or above cash back card just MS your way to enough cash to cover your bills. I realize I'm being a bit of a killjoy but I'm for efficiency over games.

 

[MarkD]

@Unifer is right - 5% is your target.

A good strategy is buying GCs with a 5% card (Ink, OBC) and then using Evolve to pay the biller. I contribute to my kids 529 plans this way along with paying Geico insurance, PG&E gas and electric, car payments, mortgage payment and any other bill I can find on Evolve Money.

 

[Mel]

I buy Gas GCs at Kroger with my Amex Blue Cash for 6% cash back. So I get the 6% off gas plus any same as cash savings from the gas station. I only buy during 4X fuel points offer, so I also get $1.00 off per gallon (up to 30) for every $250 in GCs that I buy.

 

[Marc]

I'm with Unifer as well, I use my Ink card to pay my cable, internet and phone to maximize the 5% cash back.

I also try to use my Barclays Arrival WP Card since it nets 2.2% cash back for travel and also has the 10% redemption refund.

 

[seven-up]

I pay alot with MOs. OBC-VGC-MO....

 

[Matt S NYC]

I also try to use my Barclays Arrival WP Card since it nets 2.2% cash back for travel and also has the 10% redemption refund.

With Arrival, you actually get 2.2222222%, but that is inclusive of the 10% redemption refund. You don't get it on top of the 2.2 repeating.

 

[credipig]

I pay alot with MOs. OBC-VGC-MO....

Do the banks have any problems with MO payments? I recently opened a checking account with State Farm Bank. I understand this isn't a checking account, but they disabled my account after I deposited $8K in MOs. The fraud lady said it was "very suspicious."

 

[InstinctX]

You should open several accounts at small banks, local CU's.. Alliant CU is a good option, as well as UFB. I sprinkled my MO's around to share the love across the banks...

I never deposit MO's at my real bank because I want to keep them out of any MS activities.

 

[seven-up]

DCU and PenFed have been friendly for MOs