Picture: Teerasak Ladnongkhun (Shutterstock)
Credit cards seem to be recognized for everything other than for rent, as much landlords will flat-out refuse plastic-type to avoid the 2-3% interchange charges on large transactions. But it is still possible to pay your lease with a credit card—if you’re ready to pay a service fee that basically covers that 2-3%.
Is it even a great idea to pay rent with a credit card?
Credit card debt is expensive and can hurt your credit rating. You really should only use a credit card designed for rent if you’re sure you can pay it in return quickly. If you have exhausted all your money and are using a credit card a last vacation resort, consider United Way’s checklist associated with alternative options first. Also know your state plus federal rights as a tenant plus consult this list of eviction moratoriums provided by the particular legal education site Nolo.
That said, there are several possible benefits in using cash-back incentive cards to pay your rent. Being a large transaction, rent can be used to rapidly achieve minimum spending cash-back benefits as part of a sign-up bonus. You may have, say, a $200 cash-back reward if you spend $1000 within ninety days, with your rent payment covering the majority of that required spending.
Comfort is another benefit—if your rent arrives before payday, you can use your charge card and then pay yourself back as soon as your paycheck is deposited. This particular works when you have stable, predictable earnings, otherwise there’s always a danger in not being able to pay back the total amount due to an unforeseen event.
How do i use my credit card to pay lease?
Your first option is to deal with your own landlord directly and see if they will require your credit card. They probably will not, but it’s worth trying. When they do, make sure you also ask about any kind of potential “service” fees to avoid any kind of surprises when rent is due (some landlords might try to charge you some thing crazy, like $50 per deal, which is their way of saying “leave me alone”).
Your landlord might be using (or willing to use) a third-party bill-paying app that allows you to pay lease with your credit card. These bill-paying applications will send either bank transfers or even a mailed checks in your name for your landlord, with the option to make the obligations recurring. Some commonly used apps consist of Plastiq , RadPad , and RentMoola . You can also use peer-to-peer services such as Venmo or even PayPal , although some property owners might prefer the formality of a sent check or bill tracking how the bill-paying apps provide. Whatever you select, there’s no escaping the 2-3% service fee.
Scheduling payments through third-party apps might be worth the comfort, but just remember that you’re paying support fees (e. g., 3% expenses you an additional $45 for lease that’s $1500) and there are much better options for paying your rent, for example cash, a debit card, document check or money order.