Although rent is likely to be your highest monthly cost, it seems that almost every landlord wants just one payment method: money from your bank account through paper checks or internet transfers.
You may earn via credit card incentives with all of the miles and points. You might be wondering whether you can pay your rent with your wallet’s plastic. Unfortunately, paying the rent with a credit card will incur a fee from landlords, property managers, and third-party businesses.
Continue reading to learn how to pay rent using a credit card and if it’s a good idea for you.
- The benefits and drawbacks of paying rent using a credit card
- Rent payment options with a credit card
- Calculating the cost of paying rent using a credit card
- Paying rent using a credit card is a good idea… for certain people.
How Can I Become Eligible for a Bad Credit Loan?
If you are making an application to get a bad credit loan, remember that you must meet certain criteria and submit the required documents. In most cases, you will be required to meet these requirements in order to qualify to receive the PaydayNow bad credit loan:
- You must reside in the same location in which you are applying for the loan
- Are older than a certain number of years old or older than 18
- You should have a working number of a phone and an email address.
- You must provide proof of having an active bank account you’ve had for at least one month.
- You should not be bankrupt in any case at the time that you apply
Certain bad credit lenders may ask for proof of a steady source of income like self-employment or employment, disability benefits and retirement funds, or other income sources that are stable. You can qualify for a bad credit loan if you are earning a minimum of $1,000.
Certain lenders require to have a valid SSN (Social Security Number) or ITIN (Individual Taxpayer Identification Number) however, others don’t.
The benefits and drawbacks of paying rent using a credit card
It’s crucial to evaluate whether or not you should pay rent using a credit card before learning how to do so. Everyone has different habits when it comes to credit cards, and going into debt to pay the rent might be a significant personal financial error.
To avoid financing costs while paying the rent with a credit card, you must pay your account in whole and on time every month. This will guarantee that you utilize your rent payments to help rather than hinder your credit and that you don’t wind up paying hundreds or thousands of dollars in interest and fees.
If you have a shaky credit card history, you should thoroughly examine whether or not this is useful for you. Don’t take the danger of paying your rent with a credit card if there’s a potential it’ll put you in debt in the future. You can always come back to the plan after your finances have stabilized.
The benefits and drawbacks of paying rent using a credit card
Pros:
- Rewards from credit cards that may be available
- Rent payments would aid in the development of your credit history.
- Paying in a convenient manner
- Removes the risk of a bounced check.
- Avoiding payday loans is an option.
Cons:
- Fees might cancel out the benefits.
- Your credit score may suffer as a result of increased credit consumption.
- Having extra money in your checking account may encourage you to spend more and complicate your budget.
- If you don’t pay your monthly payment, you run the risk of incurring high-interest credit card debt.
Rent payment options with a credit card
While paying rent using a credit card isn’t as straightforward as paying with cash, the benefits might be well worth the effort. You may pay your rent with a credit card in one of two ways: via your landlord’s payment center or through an online credit card bill payment platform.
Making payments via your landlord’s system
You may already be able to pay your rent with a credit card if you rent through a property management firm or have a landlord that uses an online tenant management platform.
If you have access to a service that doesn’t charge fees for paying the rent with a credit card, you may do so even if it’s just for a month or two to receive a card’s sign-up bonus or another advantage.
Experimenting with a third-party service
There are choices available if your landlord does not accept online rent payments or if you would have to pay a hefty cost, like in the case above.
Rent may be paid with a credit card via PlacePay (previously RentShare) and RentTrack. When you do, the seller will charge your card and send your landlord a check or make a direct payment into their bank account.
If you pay with a credit card at PlacePay, for example, you will be accountable for 2.99 percent of the monthly rent. Your landlord may choose to pay the charge on your behalf. However, this seems unlikely in most situations.
If your landlord has a merchant account with a general payment provider like Paypal, Square, or Venmo, they could be prepared to cover the price.
Plastic is one of the most popular credit card rent payment methods. Plastiq costs 2.85 percent for credit card payments on average, although deals often allow you to pay much less.
Regardless of the third-party service you employ, you’ll need to plan using this strategy. Between the time you send over your credit card information and the time that firm pays your landlord, there might be a delay. Inquire about this payment schedule to guarantee you never miss a rent payment.
Calculating the cost of paying rent using a credit card
Rent may be paid with a credit card, just as it can be paid with a credit card for student loans.
But are the fees of 2% to 3% of the total worth it? Let’s look at the numbers and see what we can come up with.
Assume your rent is $1,000 per month, as an example. Your yearly rent expense would be $12,000 if you paid your rent directly to your landlord with a check.
If you didn’t utilize a promotion, you’d pay an extra 2.85 percent in costs if you used Plastiq. Fees amount to $28.50 per month or $342 per year.
Rent would cost you $12,342 a year if you used the Chase Sapphire Preferred® card, one of the best cards for travel hacking. If the card’s reward program pays two cents for each point, you’ll get 12,342 points worth $247.
It’s a bit different, but purchasing using a credit card in this scenario would result in a loss. Using your credit card would cost you $342, but you’d only get $247 back in rewards. To make it worthwhile, you’ll need to obtain more value from your miles and points to break even.
Using your rewards credit card to pay your rent should be done with caution. Consider which card you want to use to pay for your rent, look into its rewards program, and figure out how to maximize your miles and points.
You could receive a reasonable price in certain circumstances. In some instances, paying your rent with a credit card may result in a loss of funds.
Paying rent using a credit card is a good idea… for certain people.
Paying your rent using a credit card is not only doable, but it might also make sense in certain instances. Even if paying your rent with your credit card will result in a loss, paying for only one or two months might be enough to enable you to earn a large signup bonus.
Consider your rent, credit card fees, and how you utilize your credit card rewards to determine what’s best for you.
If you’re going to incur credit card interest due to this technique, never pay your rent using a credit card. You can pay your rent with a credit card if you pay your card off in full each month and have a compelling purpose for the miles and points.
