Not all landlords will accept rent payments with credit cards. Equally so, you’ll find rare apartment complex buildings that accept online credit card rent payment without additional fees.
But let’s face it, the cost of housing in America is quite expensive, and many young people starting life after college discover that shelter takes up most of their earnings. The average price of an affordable apartment in many cities ranges from $800-1500. Acquiring a credit card to pay off your monthly rent obligation without fail is a massive relief because covering monthly rent or mortgage on time is equally important.
Consider yourself lucky if your landlord allows online credit card payments for annual leases because of the potential Value in earning points. If your rent is $1,200, for instance, and you make monthly payments with a Chase Freedom Unlimited credit card, you earn 1.5 % monthly cash back. After 12 payments, your Ultimate Rewards Points totals 21,600, worth $453.60.
We have selected some of the best credit cards you can choose from plus tips on how to pay your mortgage or rent with credit cards.
Table of Contents
- 1. Check with your Bank/ Landlord/ if they Accept Credit Card Payments
- 2. Beware of High Third-Party Fees
- 3. Go for Value with a High-Earning Credit Card
- 4. Grab the Huge Signup Bonus
- 5. Credit Card payments Coded as Cash Advances
- 6. Corporate Rents/Mortgages
1. Check with your Bank/ Landlord/ if they Accept Credit Card Payments
Very few Landlords and rental agencies accept rent payment with credit cards because of the processing fees charged on fund transfers. The first step is to find apartment complexes that accept credit card rent or mortgage payment. Moreover, some credit card networks don’t allow mortgage payments processing through credit cards.
Besides the obnoxious fees charged, understand that mortgage loans and credit cards are a form of debt, you need a solid credit standing and steady income to make payments every month without fail; because you are, in essence, paying debt with additional debt.
On a positive note, most rent payments are not generally regarded as a debt; since you’re mostly paying ahead of time, so card networks and issuers allow rental payments made with credit cards.
2. Beware of High Third-Party Fees
While most landlords and banks won’t accept rent/mortgage credit card payments, a few third-party companies allow credit cards used to make such payments.
Here’s how it works; you pay your rent or mortgage to the rent collection company with your preferred payment method, and then the company sends the funds to the designated recipient. On the downside, you pay an extra service charge of up to 3%, which is pretty stiff for potential points given that a few credit cards will offer reward points for rent payments – if your cash back card offers 2% for fees, you’re in the red by 1%.
3. Go for Value with a High-Earning Credit Card
To counteract the high service fees charged on your credit card for paying your rent or mortgage, use the highest-earning card in your wallet.
If you want to earn points, go for a credit card that offers a bonus, or the highest unlimited rewards which you can use to your advantage when making rent payments with your credit card.
Best Credit Cards for Value:
1. Discover it® Cash Back
Discover matches your cash back value automatically at the end of your first year.
Earn 5 percent cash back on daily purchases, including groceries, and online payments.
Earn automatically; free 1% cash back on all purchases.
Rewards never expire. Redeem your cash back for any sum, anytime.
Earn double cash back every time you spend with unlimited 1% cash back with your credit card plus extra 1 percent cash back when you pay off your credit card with your bank.
Earn a $150 Bonus for purchases worth $500 within the initial three months from account opening
Earn 5 percent cash back when you spend $1,500 in bonus categories every quarter.
Earn new 5 percent categories every quarter.
Enjoy automatic unlimited 1 percent cash back on all new purchases.
The Chase Freedom® sometimes offers selected online payment methods, like PayPal and Apple Pay, as a bonus category. Earn up to 5 percent cash back if you make rent payments using your credit card with a suitable payment service.
4. Grab the Huge Signup Bonus
Beyond purchase rewards, using your credit card to pay your rent or mortgage gives you a chance to meet the spending requirement for the highly valued registration bonus.
Some credit cards require expenses up to $3,000 within 90-days to qualify for huge bonuses, which can be tough to meet if you’re not a spendthrift, or you do not have housing obligations like a mortgage to meet the bonus requirement.
Best Credit Cards for Sign up Bonus:
Earn 50,000 bonus points for purchases up to $4,000 within three months from the account opening. You can easily earn this big Bonus if you make housing payments plus additional purchases using your credit card within the stipulated grace period.
Chase Sapphire Reserve® charges $500 in annual fees — and a hefty spending requirement to match. But it’s all worth it because the points you earn on purchases and online payments balances out the transaction fees.
Earn 60,000 bonus points for purchases up to $4,000 within three months from account opening.
Earn 2X points on worldwide travel and dining at restaurants and one point for every dollar you spend on all other purchases.
3. Capital One® Venture® Rewards Credit Card
Enjoy a one-time fat bonus worth 50,000 miles for $3,000 spent on purchases within 90 days from account opening.
Earn unlimited 2X miles on daily purchases and online payments.
Miles do not expire if your account stays active, and there’s no limit to how many you can earn.
5. Credit Card payments Coded as Cash Advances
Sometimes third-party credit card processors that handle your rent payment are not the only ones that charge fees on your card. Your credit card issuer, in some cases, may read your payment as cash advance, attracting huge accruing interest — often at a higher rate from your regular credit card purchases.
In such instances, it may be wise to use convenience checks provided by your credit card company to minimize the transaction fees, or better still to avoid a double charge on your credit card.
6. Corporate Rents/Mortgages
You can also pay for leased office space using third-party platforms with your preferred business credit card. Remember, the same possible limitations apply to business rent payments similar to consumer payments.
Best Credit cards for Business Rent and Mortgage:
1. Ink Business Preferred® Credit Card
Earn 100,000 bonus points for purchases up to $15,000 within 90 days from account opening.
Earn 3 points on all purchases on the first $150,000 travel expenses in the business categories every 12 months.
Earn 1 point per dollar without limits on any other purchases.
Redeem your points any time.
Reward points do not expire if your account stays active throughout the year.
Best business credit card for frequent fliers.
Get a $500 cash bonus when you spend $4,500 within 90 days from account opening
Earn 2% cash back unlimited for your business on all purchases, without restrictions.
Free employee cards, with the same unlimited 2% cash back on every purchase.
Rewards do not expire if your account stays active and you can redeem your cash back at any time, for any amount.
Decide If the Convenience of rent or mortgage payment using your credit card is Worth the Cost.
Housing is one of the most expensive and most essential needs alongside food and clothing. Paying for it every other month is just as important, even when you run low on cash – shelter is an unavoidable expense. You can carefully choose an appropriate card to sort out your housing needs. Bear in mind that it is costly, yet rewarding when you collect your cash back points at the end of every year to compensate for the substantial annual fees, not to mention the third-party payment fees.