Is there a flaw with my plan to pay our utilities with the AIB Platinum Credit Card? I have already paid a large gas bill this month.
I don't see anything against this in the card T&Cs. What about the direct debit discount we have with utility companies? Technically we still have a DD mandate, it's just that there won't be a balance owed by the time it's due.
I will be clearing the CC every month.
Not that we will be rich from this, first €5k in a year is exempt and then it's 0.5% back.
Not sure about whether Credit card will be treated the same as Direct Debit, only your provider can confirm that for you for the Direct Debit discount. Personally I can't see why not, they still get paid. (I pay my sky broadband with credit card for example)
So if you put say 10k on the card you end up with 5k x 0.5 % ie 25 euro back? Genuine question - Is it worth the hassle really?
Yes that is correct. it is cumulative, once it is over 5K, that's when it counts for cashback (reset at end of year). I think it is worth it, not as much hassle as you think, I've been doing it for years. The way I see it is that you are spending money on things already anyway, what difference does it make by paying with credit card over debit card or cash. You are basically just off loading everything to one card.
You get interest free credit (up to 56 days, depending when the charge goes through), fraud protection (yes direct debit has it too but if you are paying anything in huge amount that require bank transfer (car or solar install) for example it certainly helps if they accept credit card -
This is one of those moments)
You need discipline to pay for utilities on time and also to ensure CC is paid on time too.
If cashback or points were in the 2% zone I’d be bothered but not at 0.5% over €5k.
If you are using the credit card to pay for things, the credit card would be paid by direct debit so no worries about being on time as it is automatic.
Yes ideally everyone prefer higher rate but I would not scoff at it even if it is only 0.5%. It has more than enough to cover Stamp Duty and then some for me personally.
As I said above, if you are spending already anyway, it makes no difference using Credit card over the other form of payment when possible.