Table Of Content
Is It Possible to Pay Rent With a Credit Card?
Yes. You can pay your rent using a credit card. However, you are charged a fee for doing so. However, it's best to ensure the advantages outweigh the disadvantages when paying your rent using a credit card.
On the one hand, using your credit card to pay rent saves you the time you could have spent writing and waiting for checks to be cashed. On the other hand, it is a flexible mode of rent payment.
The payment shouldn't be direct – if your landlord does not accept credit card payments, you can still pay the rent through rent payment services that accept credit cards.
Overall, it is a convenient method but might cost more than other methods, especially using checks.
Is It Possible to Pay Rent With a Credit Card Directly?
There are different options for using your credit card to pay rent.
You can pay rent directly to your landlord using your credit card, but the chances are slim. Most landlords do not accept using credit cards to pay rent because of the charges. The fees associated with rent payment using your credit card offsets any rewards you might earn in the process.
Therefore, if you want to pay your rent using your credit card, it is highly likely that you will do so using third parties. Using your credit card to pay rent is best if you are certain the benefits will work in your favor.
Third-Party Apps for Paying Rent With a Credit Card
If you choose a third-party app to pay your rent with a credit card, here are the main apps to consider:
Service | Fees | How Does It Work |
|---|---|---|
2.99-3.99% | Before paying the rent with this service, your landlord must approve it. When you pay rent with this service, you earn rewards on your credit card.
Also, you earn Moolaperks that give you discounts on shopping and travel.
The service accepts payments from Visa, American Express, Mastercard, and eCheck.
| |
2.5% | Plastiq does not have restrictions when paying rent using your credit card.
After completing the transaction, the payment to your landlord is through a check or ACH transfer.
At times, the service offers promotions where they might reduce their fees.
It accepts different credit cards, such as Visa, Mastercard, American Express, and many others.
You need to consider the cards it supports, fees, and the duration it takes for the landlord to get paid. | |
3.0% | Venmo is easy to pay your rent using a credit card.
You can pay your landlord as long as they have a Venmo account.
The process entails logging in, finding the landlord, and hitting the pay button.
The landlord receives the funds in the Venmo account and can transfer them to the bank or another person.
It accepts Visa, Mastercard, Discover, and American Express.
| |
2.9% + $0.30 | You can pay your rent using this service only if your landlord has a PayPal account. It is a straightforward service that makes it easy for your landlord to create a business account for rent collection.
There are no limits, and you can easily fund and send your rent.
It accepts all major credit cards.
| |
3.5% + $0.30 | PayRent makes it easy for you to pay rent from anywhere.
Both you and your landlord have to register on the platform for you to be able to pay your rent using your credit card.
It is a convenient service that saves you time.
Before using the service, you must consider the fees, convenience, and whether your landlord accepts the method.
| |
2.99% | Placepay makes it possible for tenants to split the rent among roommates.
You and your roommates need a placepay account to use the service.
It would be best if you considered the convenience of splitting the rent with your roommates and the fees.
Also, you have to consider the cards that are accepted.
|
Other Ways to Pay Rent With a Credit Card
Other than paying rent to your landlord directly and using third-party apps, you can use your credit card to pay rent through collection apps built into property management services.
Most property management companies have apps you can use to pay rent using a credit card. On such apps, landlords are charged to access the apps and manage their rent by doing the following.
- Setting rent reminders
- Charging for lateness
- Rent collection
Such apps make it possible for landlords to streamline the management of several properties.
The apps of the different property management companies are a viable choice that you and your landlord can choose because of the benefits, including many features.
Sign Up for
Our Newsletter
and special member-only perks.
Sign Up for
Our Newsletter
and special member-only perks.
Is It Smart To Pay Rent With a Credit Card?
Due to the high fees, most renters will prefer to skip paying the rent with a credit card. If you don't have a specific goal, it may not be a good idea.
Here are the benefits and drawbacks:
Pros | Cons |
|---|---|
Earn Rewards | High Fees |
No Late Payments | May Hurt Your Score |
Improve Credit Score | Third-party Apps Need Landlord Approval
|
Welcome Bonus |
- Earn Rewards
You can earn cash back and other rewards when you pay your rent using your credit card. You can earn the rewards your card provider offers and the third-party app you are using.
- No Late Payments
You can automate rent payments on your credit card to minimize the chances of delayed or late payments.
- Improve Credit Score
The process improves your credit score when you make on-time payments.
- Welcome Bonus
Using your credit card to pay rent can help you earn a new card's welcome bonus. However, you need the plan to repay the balance before the due date.
- High Fees
There are additional processing fees for using your credit card to pay rent. The cards also attract interest payments that increase if you do not pay your balance on time.
- May Hurt Your Score
Rent payments using your credit card increase your credit utilization ratio. The ratio is a key determinant of your credit score, and you should focus on lowering it.
Therefore, rent payment using your credit card pushes the ratio higher, affecting your credit score.
- Third-party Apps Need Landlord Approval
Using your credit card to pay rent comes with guarantees and convenience, but most of the apps require landlord approval. This might delay the process and make it less convenient.
Tips for Paying Rent With a Credit Card
- Pay your credit debt on time. You must pay your debt and any accrued interests within the grace period to avoid incurring additional costs.
- Use a card with a low-interest rate. Different card providers charge different interest rates. You can use cards with lower rates and pay back before the due date. If you fail to pay the amount in full every month, you must contribute nearly as much.
- Pick a credit card specifically meant for rent payments. You can earn rewards and bonuses if you pay rent using rent-specific credit cards. Also, you can redeem rewards for rent payments.
- Use affordable third-party apps. Most third-party apps have payment guarantees implying you are not responsible for late payments. Using affordable apps ensures you pay less than other apps and do not pay any lateness fees.
- Use a card with higher cashback bonuses. If you are paying rent using your card to gain cash rewards, you need to go for a card with a cashback bonus with a higher percentage than the processing fee.
How to Minimize Fees When You Pay Rent With a Credit Card?
Using the credit card's payment feature, you can minimize fees when paying rent using your credit card. For example, the Send & Split feature allows you to send money through PayPal or Venmo without paying the credit card fee.
You can use Mastercard's Bilt app. It offers fee-free ways to pay your rent using your Mastercard credit card. Also, you can use the card to pay rent through third-party apps such as PayPal and Venmo.
After paying rent using your credit card, you need to repay the debt plus any accrued interest so that it does not turn into credit card debt. Repayment of the funds helps minimize fees that accrue due to late or non-payment.
Does Paying Rent With a Credit Card Improve Score?
For most Americans, having a bad credit score or being credit invisible means limited access to loans and credit cards and an increase in interest rates.
Americans have experienced an increase in their credit score between 2014 and 2021. Despite the overall rise in the credit score, you can still increase your score by improving your payment records for certain utilities.
Therefore, when you pay rent using your credit card, you can improve your credit score by making prompt repayments. Paying rent improves your credit score if you use your credit card at least three times within the last six months.
Alternatives to Paying Rent With a Credit Card
If you are experiencing difficulties paying your rent, there are some alternatives that may be relevant:
- Talk to your landlord
If you're having trouble paying your rent, it’s a good idea to talk to your landlord and explain your financial situation. You might be able to work out a payment plan that suits both of you.
If the issue is due to timing, your landlord may be willing to adjust the due date. Having a positive, open relationship with your landlord can make it easier to find common ground and reach an understanding.
While there might be a small fee involved, communicating with your landlord can give you extra time to come up with the rent.
- Personal Loan
Although loans are not a good option for rent payment, it is a choice that you can consider if you don't have money in savings. However, you will repay plus interest, which might negatively affect your credit score.
- Borrow from family and friends
If you need money to cover your rent, consider asking friends or family for help instead of going to a financial institution. Borrowing from loved ones may come with the advantage of no interest, but it’s important to remember that not paying them back could damage your relationship.
While borrowing from a bank impacts your credit, borrowing from friends or family impacts your personal connections. Make sure you can repay the loan to keep those relationships strong.
Borrowing from the bank is borrowing against your credit, while borrowing from a friend or relative is borrowing against your relationship. Therefore, you need to be able to pay to maintain a good relationship.
Review Online Shopping Credit Cards
Capital One Walmart
Amazon Prime Rewards Visa Signature
U.S. Bank Cash+ Visa Signature
Wells Fargo Active Cash
Chase Freedom Flex
Target Red Card
