The Pros And Cons Of Paying Rent With Your Credit Card

What do many of us do when we can’t pay the landlord on time? We’ll ask friends or family to borrow money. We may take out a quick loan, especially if we’ve had issues with the landlord in the past. Or we may try to avoid the landlord altogether, which can only make things worse.

What’s a rent-paying option that might be better than any of those listed above? Paying the rent with your credit card. But before we get into the pros and cons of making this move, let’s look at some options available that you can explore on your own:

Credit Card Payment Options

Your Landlord

Some landlords accept credit card payments, as they know tenants can sometimes be in a pinch. Ask your landlord if this is an option. Then ask if there are any processing fees, as is the case with the following options.

Venmo

A Venmo payment will go directly to your landlord. Use a credit card, and you’ll pay a 3% processing fee. Use a debit card, and it’s free.

Plastiq

Your landlord will receive payment via ACH transfer, wire transfer, or check. You can set up automatic payments with Plastiq, so the rent gets paid on time each month too.
Processing fees are 2.5% for credit cards and 1% for debit cards.

RentMoola

Your landlord will get a direct deposit here. Automatic payments are a go, and processing fees are $3.99 for debit and 2.99% for credit.

RadPad

You can split rent with roommates using this option, and your landlord will get a check. Processing fees are $4.95 for debit and 2.99% for credit.

The Pros and Cons of Using Your Credit Card for Rent

Pros:

The biggest pro of using a credit card to pay your landlord is convenience. With it, you won’t have to look for a loan, and you can pay your rent instantly to avoid confrontation.

Paying the rent with your card also builds credit that can give you an excellent financial foundation to build on. And if you’re worried about forgetting to pay the rent in the future, automatic credit card payments can be set up in most cases to avoid this problem.

Sign-up bonuses for new cards can be quite lucrative too. If you spend $3,000 in the first three months with a Capital One Savor Card, you could get a $500 bonus.

Rewards points are another perk of using your credit card to make big purchases like the rent. Accumulate enough points, and you can use them towards airfare and gift cards or convert them into cold, hard cash.

Cons:

You could find yourself in deep debt if you rely on credit cards too often. You can also increase your credit utilization to the point that it begins to hamper your credit score.

Interest rates can make rent more expensive if you don’t pay off your balance, and processing fees add to your costs.

Delays can sometimes plague credit card payments, unlike cash, money orders, and checks. Exceed your credit limit or use a card that’s expired, and your landlord may not get their payment on time, as those errors will keep transactions from being finalized.