Should You Pay Rent With A Credit Card?

We’ll discuss options for paying your landlord with credit and the advantages and disadvantages of doing so.

What happens if you can’t pay your landlord on time? You probably do everything you can to buy time, which could include ignoring their calls, texts, or even hiding from them in person. This stalling strategy can backfire big time, which is why you should seek alternative methods of payment, so your landlord is satisfied.

You may not have done it in the past, but paying the rent with your credit card could be an option. Do all landlords allow this? No, as most prefer good old cash, cashier’s checks, or money orders. But it doesn’t hurt to ask your landlord if they’ll take credit. And if they do, you’ll not only make your payment on time, but you could also reap other rewards.

The Advantages of Paying Rent With Your Credit Card

Besides getting your payment in on time and getting the landlord off your back, here are some benefits to using your credit card for the rent:

• You can build your credit history, which will make it easier to buy a house or car later on, take out low-interest loans, other credit cards, etc.
• You can earn sign-up bonuses if you open a new card, such as $500 from the CapitalOne Savor Card if you spend $3,000 in the first 90 days.
• You can set up automatic payments through your card, so you’ll never be late on the rent or forget to pay it.
• Depending on the card, you could earn rewards points that can be converted into gift cards, cash, or used for travel.

The Disadvantages of Paying Rent With Your Credit Card

• Some companies that accept credit cards to ensure your landlord gets paid may charge you a processing fee. This could be as much as three percent of the transaction, which is an added cost for convenience.
• Unlike cash, checks, or money orders, credit card payments may take several days to process.
• If you don’t pay your card balance in full at the end of the month, you’ll pay more in rent due to interest charges.
• You can negatively impact your credit score if rent payments increase your credit utilization ratio. This is another reason to pay down your card balance each month, so it doesn’t look like you’re borrowing too much.
• Processing errors could delay your payment, resulting in late fees or problems with your landlord. For instance, a credit card might expire without you knowing it, which can cause the payment to be declined. You may also exceed your credit limit, making it impossible for the payment to go through.
• Constantly relying on credit to pay your bills can lead you into deep debt if you’re not careful.

Ways To Pay Rent With Your Credit Card

If you feel like using credit to pay your rent is a good option, here are some methods to make it happen:

• Pay directly to your landlord if they accept such payments – This option could help you avoid costly credit card processing fees.
• RentMoola – Charges a 2.99 percent processing fee.
• Place – Charges a 2.99 percent processing fee and allows you to split the rent with roommates.
• Plastiq – Charges a 2.5 percent processing fee.
• Venmo- Charges a three percent processing fee.
• RadPad – Charges a 2.99 percent processing fee and allows you to split rent.