Imagine this: You just got your dream credit card with incredible cashback and rewards. Excited, you swipe it everywhere—groceries, fuel, online shopping, even rent payments. Life is good until the credit card bill arrives. It’s in lacs, and you realize your traditional payment methods offer no benefits at all.
Sounds familiar? You’re not alone. Many people struggle to find a sustainable way to pay their credit card bill while maximizing rewards and avoiding extra charges. But don’t worry; in this guide, we’ll uncover the best methods that allow you to pay efficiently while earning cashback, avoiding fees, and making payments seamless.
Understanding the Challenge: Paying Credit Card Bills in Lacs
For individuals who pay high credit card bills, typically over ₹1 lakh per month, regular payment methods can be limiting. You might already know about:
- HDFC Bank Debit Card (limited to ₹40,000)
- Mobikwik Full Payment
- Cheq & Cred
Top Sustainable Ways to Pay Credit Card Bills
Using Wrong MCC Codes to Earn Cashback (Advanced Strategy)
MCC (Merchant Category Code) plays a huge role in determining how much cashback you get. Some payment platforms mistakenly classify credit card bill payments as regular transactions, allowing users to earn cashback.
For example, certain platforms like Cheq, Mobikwik, and Payzapp have, in the past, been reported to classify credit card payments under the wrong MCC, allowing users to earn 3-5% cashback. However, this is not guaranteed and may change at any time.
Making Payments via Paytm or Amazon Pay
Many digital wallets allow credit card bill payments and sometimes even offer cashback or reward points:
- Amazon Pay allows you to pay your bills via UPI and sometimes provides cashback offers.
- Paytm Credit Card Bill Payment offers scratch cards, where you can win up to ₹500 cashback per transaction.
- PhonePe & Google Pay occasionally offer rewards on credit card payments.
- Pro Tip: Keep an eye on limited-time offers and festive season deals!
Using Business Accounts for High-Value Payments
If you own a business, you can pay your credit card bills through corporate accounts to enjoy benefits like:
- Better transaction limits
- Reduced processing fees
- Higher cashback through business cards
- Certain fintech platforms like RazorpayX and Instamojo allow businesses to process high-value payments smartly.
Paying via Rent Payment Apps
Surprisingly, some apps like NoBroker, MagicBricks, and RedGiraffe allow you to pay rent using a credit card. Some users use these platforms to pay themselves as landlords and then use the funds to pay their credit card bills, earning cashback in the process.
How it works:
- Add your own bank account as a landlord (use at your own discretion!)
- Pay rent via credit card
- Withdraw the amount and pay your credit card bill
- Earn up to 2-3% cashback!
- ⚠ Note: This method involves transaction fees; ensure that your cashback outweighs the charges.
Credit Card to Bank Account Transfer (Via P2P Apps)
Some platforms allow transferring credit card balance to a bank account at minimal fees, making it easy to pay another credit card bill.
- Cheq & Mobikwik sometimes allow users to send money to bank accounts and pay bills with minimal fees.
- Payzapp & Freecharge also work similarly but have transaction limits.
- This method helps in avoiding liquidity issues while optimizing rewards.
Credit Card EMI Payments via Wallets
If you can’t pay the full credit card bill, converting it into 0% EMI via a wallet app might be a great solution.
Apps like Cred & Paytm sometimes allow converting credit card bills into EMIs directly, helping you manage cash flow better.
Benefits:
- Avoid high-interest rates
- Cashback offers on EMI transactions
- Improves CIBIL score if paid on time
Step-by-Step Guide to Smart Credit Card Bill Payment
- Check which method offers the highest cashback at the time of payment.
- Split the bill across different platforms to maximize rewards.
- Utilize digital wallets that provide UPI-based credit card payments.
- Take advantage of limited-time offers from Mobikwik, Cheq, and Amazon Pay.
- Avoid unnecessary fees by keeping an eye on processing charges.
- Ensure your transactions are legitimate and comply with banking norms.
Frequently Asked Questions
How can I earn cashback while paying my credit card bill?
You can earn cashback by using platforms like Cred, Amazon Pay, Paytm, and Mobikwik, which offer rewards for bill payments. Some credit cards also provide cashback on bill payments.
Which apps or websites offer the best cashback for credit card bill payments?
Popular platforms like Cred, Paytm, Mobikwik, Freecharge, and Amazon Pay often provide cashback, discounts, or reward points when you pay your credit card bill through them.
Are there any fees for paying my credit card bill through cashback apps?
Most apps do not charge extra fees for standard transactions, but some may have convenience fees when using certain payment modes like wallets or credit cards to pay another card bill.
Which credit cards offer cashback for paying bills?
Some credit cards, like HDFC Millennia, SBI Cashback Card, and Axis Ace, offer rewards or cashback on bill payments when done through eligible platforms.
Can I maximize cashback by combining offers?
Yes! You can stack rewards by using a cashback credit card + a cashback app to pay your bill, along with bank offers or promo codes to increase your savings.
Conclusion
Paying your credit card bill smartly can help you save money and earn rewards instead of just settling dues. The best approach is to use cashback apps like Cred, Paytm, and Amazon Pay, which offer discounts, reward points, or direct cashback. Additionally, using a cashback credit card for payments through eligible platforms can maximize your earnings.
To get the most benefits, always look for promo codes, limited-time offers, and bank partnerships that enhance your rewards. However, be mindful of any transaction fees and ensure timely payments to avoid late charges and interest fees.
