You might want to pay your rent with a credit card to close the gap until payday, rack up rewards, or get that big welcome bonus. However, many owners only accept cash or checks when it comes to renting, which makes sense. Most credit card companies charge a processing fee, which typically ranges from 2.5% to 2.9% of the transaction and can add up over time.
Here’s how to pay your rent with a credit card, even if your landlord doesn’t accept credit card payments.
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How to pay your rent with a credit card
If your landlord accepts credit card payments, you will either pay your landlord directly or through an online payment portal where you can enter your credit card information and complete your payment. However, before using your credit card to pay your rent, ask if you will need to pay any additional charges so that you know the total amount in advance. For example, a 2.5% processing fee on a rent payment of $ 1,200 is $ 30.
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Choose the right credit card
When you pay a big expense, like your rent, why not be rewarded for it? The key to making this work is choosing the right credit card – preferably one that offers rewards and doesn’t charge transaction fees.
While there are many rewards cards out there, Bilt Mastercard is the only one currently available that rewards you for paying rent without including the processing fee per transaction. In addition, no annual fees or foreign transaction fees apply.
If you use BiltProtect, one of the card’s features, the funds to pay your rent will come directly from your connected bank account – not your line of credit, as a debit card works. If you choose to pay your rent with your line of credit, this amount will be added to your minimum payment due, which you will owe in full on the next due date of your statement.
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If you decide to pay your rent with another card, review your credit card contract or call the issuer to make sure they won’t treat your rent payment as a cash advance. Transactions encoded as cash advances incur additional fees and higher interest than transactions encoded as purchases.
Also, when you pay your rent with a non-Bilt credit card, you won’t be able to withdraw the funds directly from your bank account, so the amount will be taken from your line of credit. If possible, plan to pay the amount you charged for your rent before your next statement due date to avoid interest charges.
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How to pay rent with a credit card when your landlord doesn’t accept credit cards
Some landlords do not accept credit cards for rent. If so, here are two of the cheapest ways to pay your rent with a credit card.
Bilt Rewards App
You can earn points on your Bilt Mastercard account by paying your rent through the Bilt Rewards app, also free. Once you have paid, Bilt will send a check to your landlord, via first class mail through the United States Postal Service. It can take five to seven days for the check to reach its destination, so you’ll need to plan ahead.
You can also pay your rent with your credit card through Plastiq, but it’s not free. Plastiq accepts American Express, Discover, Mastercard, and Visa for rent payments and charges 2.85% per transaction. Your payment can be sent by check or other way your landlord prefers.
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Paying your rent with a credit card, a good idea?
It depends. If you are trying to earn rewards or a welcome bonus, you will need to determine if the amount of rewards or bonus you are earning is more than the processing fee you might incur. Also, if you’re using your credit card to pay your rent because you don’t have cash, consider whether you’ll be able to pay off that portion of your credit card balance by the due date. due date to avoid interest.
Accumulating high balances that you cannot repay will not only cost you money in interest charges, it can also affect your use of credit, which is the amount of credit you are using versus the amount of credit you are using. You have. Many financial experts recommend keeping your credit usage below 30%. The use of credit is one of the most influential factors in determining your credit score.
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This article originally appeared on GOBankingRates.com: How to Pay Rent with a Credit Card