Why pay your bank-transfer bills by card?

Think about where most of your money goes each month. For many people in the UK it's rent, followed by council tax, childcare or school fees. These are exactly the bills that don't take cards. Landlords want a standing order, councils want a Direct Debit and schools send an invoice with bank details.

So while your coffee and your weekly shop earn points on your card, the bills worth thousands of pounds a year earn nothing at all. Omrello is built to fix that.

When you pay a bill by card, it can earn the same rewards as any other card purchase: Avios, American Express Membership Rewards points, Virgin Points or cashback, depending on your card.

The numbers add up quickly. If your card earns 1 point per £1 and your rent is £1,500 a month, that's 18,000 points a year from a bill that used to earn none.

Each card provider sets its own rules on what earns points, so check your card's terms. Reward figures here are examples.

Many reward cards give a large bonus if you spend a set amount in your first few months. Reaching that target with everyday spending can be hard. One or two rent payments can get you most of the way there, using money you were going to spend anyway.

We've written a full guide on using rent to hit a sign-up bonus.

Most credit cards give you up to 56 days between a purchase and the date your bill is due, and charge no interest if you clear the balance in full. Your landlord or school is paid now, and you settle your card bill later. The exact period depends on your card and when in your statement month you pay.

This only works in your favour if you pay your card off in full. Interest on an unpaid balance will quickly outweigh any rewards.

Your landlord, school or council doesn't need to sign up to anything, take cards or change how they work. They receive a normal UK bank transfer with the reference you choose, just as if you'd sent it from your own bank. Most won't notice any difference.

With Omrello you save the people you pay once, then pay them in a few taps. You can set up regular payments for things like rent so they go out on time, and see every payment and when it was sent.

Paying bills by card suits you best if:

• You already pay your credit card off in full each month.
• You collect Avios, points or cashback, or want to.
• You've just got a new card with a sign-up bonus to reach.

It isn't a way to borrow money you can't repay. If you're finding bills hard to cover, free help is available from MoneyHelper.