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The Best Credit Cards to Pay Your Bills With

Here at Ratehub.ca, we’re big believers that you should pay for everything with a credit card, in order to maximize your rewards – and that includes your bills. By setting up automatic bill payments to come off your cards each month, you can quickly rack up extra points or miles to use on your next vacation, or even cash back to help pay off those bills themselves.

We ran some numbers and found the best credit cards in Canada to pay your bills with each month. In the following charts, we assumed you spent $500/month on bills. Check out the calculations and annual returns on these 2 rewards credit cards.

1. BMO World Elite MasterCard

Card details

  • Receive a signup bonus of 30,000 welcome points, equal to $300 in travel rewards
  • Earn two BMO Rewards points for every $1 in credit card purchases—that’s 2% back in travel rewards
  • $150 annual fee
  • VIP Airport Lounge Access* with the included annual Priority Pass membership (valued at US$99), along with 4 complimentary passes per year (valued at US$27 each)
Annual FeeSign-up BonusSpending RewardsMonthly SpendingFirst Year Return
$150$3002 points per dollar spent2 points x $500 = $2,000 per month

Avg. value of 1 point = $0.01

1,000 points x $0.01 = $10/month

Sign-up: $300

Spending Rewards: $10 x 12 months = $120

Priority Pass: $207

Annual Fee: $150

Total: $300+$120+$207-$150 = $477

Return: $477/$6,000 = 7.95%

By far, you will see the highest returns if you set up automatic bill payments on your BMO World Elite MasterCard. This travel rewards credit card comes with a whopping 30,000 bonus points, which can be used as a $300 credit towards your next trip (and is one of the best sign-up bonuses on our site). With this card in your wallet, you’ll also earn 2 points per $1 spent. Even after you pay the annual fee, you would still see a 7.95% return in the first year, when you have $500 worth of bills charged to the card each month. This calculation includes the value of Priority Pass benefits and complimentary airport lounge access. As a bonus, the BMO World Elite MasterCard comes with incredible travel insurance policies, including $2 million in eligible medical expenses.

2. MBNA Rewards World Elite

Card details

  • Earn 2% cash back
  • 10,000 bonus points with first eligible purchase
  • $89 annual fee is waived for the first year
Annual FeeSign-up BonusSpending RewardsMonthly SpendingFirst Year Return
$89$1002 points per dollar spent2 points x $500 = $2,000 per month

Avg. value of 1 point = $0.01

1,000 points x $0.01 = $10/month

Sign-up: $100

Spending Rewards: $10 x 12 months = $120

Annual Fee: $0

Total: $100+$120-$0 = $220

Return: $220/$6,000 = 3.67%

The MBNA Rewards World Elite MasterCard places second for its annual return (3.67% in the first year), but it has the lowest annual fee among the other credit cards in this post. With this card, you will receive 2 points for every $1 charged to it, and there’s no limit to the number of points you can earn each year. There’s also no expiry date on the points you earn, which means you can save for any travel, merchandise or gift cards, receive cash back or donate to charity, whenever you want. Get assistance while travelling thanks to the card’s concierge service that can help you book a meal, travel or entertainment on your behalf. And you won’t need to purchase travel accident insurance since it’s one of the card’s perks. Not bad for a card that only has an $89 annual fee! The MBNA Rewards World Elite MasterCard is featured on the list of Canada`s top cash back credit cards of 2015.

Remember for all of these cards that we’ve only calculated the returns on $500 of spending on recurring bill payments. Anything you spent above and beyond that amount could only help your case, when trying to decide which card to choose from!

Flickr: Morgan

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