Which type of credit is used for utilities?

S

sarah harris

Member
Which credit card for utility payments (Gas & Electric) CFU or an airlines miles card like an American Airlines card which do not points transfer from any credit card program? Have Chase CSP and CSR for moving points for bonus value as well. What do you suggest?
 
Honestly, most utility companies just code as utilities and not in any bonus category. If you’re using the Chase Freedom Unlimited, you’re just getting the flat 1.5% back (or more if you’re stacking through CSR/CSP redemptions). The airline card is almost always worse unless it has a utility-specific promotion. Utilities aren’t usually great spend categories for miles. I’d stick with CFU unless you’re trying to hit a minimum spend bonus.
 
I’ve been paying my electric and gas with my Citi Double Cash. Two percent flat back, then funneling that into travel when I need it. Airline-specific cards are too limiting IMO unless you’re flying American every other week. Points flexibility wins. With your CSR/CSP, CFU already plugs into that ecosystem.
 
Utilities don’t typically get coded as bonus categories like dining, travel, etc. It’s usually 1x unless your issuer runs a special promo. The question is: Do you want transferable points (URs) or locked-in airline miles? With AA, you’re locked. With CFU → CSP/CSR, you’re flexible. Personally, flexibility > airline loyalty.
 
I’d say unless you’re trying to get elite status with American, there’s no reason to funnel utilities into the AA card. Like… you’re giving up value. With CFU → CSR portal or Pay Yourself Back, you’re looking at 1.5–2.25cpp value. Utilities are boring expenses; maximize boring money with flexible points.
 
Check your utility provider. Some of them slap a 2-3% convenience fee for paying with a credit card. If that’s the case, the whole debate between CFU vs AA is moot because you’re losing more than you’re gaining. ACH auto-pay might just be better unless you’re hitting SUBs.
 
If you’ve already got CSP and CSR, you’re in the Chase ecosystem. Why complicate it with AA miles that don’t transfer in? CFU is the no-brainer. Unless you’re one of those AA loyalists that actually enjoys their cramped seats.
 
Not sure if anyone mentioned it but some utilities actually code as insurance or even miscellaneous services depending on the provider. My gas bill coded weirdly once and my Citi Premier gave me 3x points unexpectedly. So check your coding before locking in a card strategy.
 
Airline cards are good for SUBs and free bags, that’s about it. Everyday spend like utilities? Nah. You’ll get better value out of CFU’s 1.5x → CSP/CSR multiplier. UR points are king if you’re playing the transfer partner game.
 
One wrinkle: If your utility lets you preload through Plastiq or PayPal, you can sometimes get them coded differently. I’ve had electricity code as online service before and earned 3x with Amex Green. So it depends how deep you wanna game the system.
 
You already have CSR. Why even consider AA? Unless you live in an AA hub and literally only fly them, UR points are more versatile. 1.5x on CFU is not bad when transferred and boosted through CSR.
 
I use my AA card for utilities, but ONLY when I’m trying to hit a spend bonus. After that? Nah, I switch back to CFU. The AA card is basically a dead weight in my wallet otherwise.
 
Utilities don’t usually have categories, but if you’re running a side hustle you might be able to throw it on a business card (Ink Cash or Ink Unlimited). That way you’re still in the UR ecosystem and maybe earn higher multipliers.
 
Airline miles are basically like gift cards to a single airline with a ton of restrictions. Chase URs are like cash you can disguise as anything. The math just doesn’t work in AA’s favor here.
 
My gas bill has a $1.99 flat credit card fee. My electric doesn’t. I run electric on CFU and gas on autopay ACH. Honestly, look at the fee structure first. Points don’t matter if you’re paying more in fees than earning.
 
I feel like the AA card only makes sense if you’re targeting Loyalty Points for elite status. Every dollar spend = Loyalty Point. If that’s your jam, then maybe utilities on AA makes sense. Otherwise, UR system wins.
 
Don’t forget about Discover sometimes running 5% back on utilities in rotating categories. If you’ve got it, that’s an easy slam dunk. Just time your autopay switch during the quarter.
 
Yeah utilities are boring AF, but boring expenses are the foundation of a good credit strategy. Stack them with CFU, funnel into CSR, redeem with transfers. You’ll thank yourself next time you book Hyatt for pennies.
 
what do you value more cashback or points/miles.
are you going to use the points/miles for travel were you get the maximum value.
if you are not as astute with point & miles, cashback is a very good option. Choose what card offers the best cash back for the purchase you are making.
 
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