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If you’re looking at all of the ways to earn credit card rewards points, you may be wondering if it’s possible to pay rent with a credit card. The good news is that it’s possible. Though there are several potential drawbacks to consider, one card has made it easier to avoid them.
How to Pay Rent With a Credit Card
There are several platforms that facilitate credit card rent payments. Here are some that you should be aware of and what they offer so you can pay rent with a credit card.
Bilt Rewards
The best overall option for earning rent rewards is Bilt Rewards. You won’t pay credit card processing fees that are nearly inescapable with other platforms.
To get started, you can use the Bilt World Elite Mastercard® to pay rent without fees. Even if your landlord doesn’t accept credit card payments, this platform will mail a check or send electronic payments without any extra fees.
You will earn 1 point per $1 on the first $50,000 in rent payments per year.
To prevent carrying a balance, you can enable the BiltProtect feature that automatically withdraws your rent amount within 48 hours from your bank account but still allows you to earn rewards.
It’s also possible to earn Bilt Points on these purchases:
- 3x on dining
- 2x on travel
- 1x on all remaining purchases
While there is no annual fee or a foreign transaction fee, you must make at least 5 purchases per statement period to earn rewards points.
You can redeem your points for award travel (25% redemption bonus or 1:1 point transfers), shopping, fitness, rent, or even help you buy a house! Read more about the Rewards and Benefits for further details.
Travel rewards are the most valuable redemption option for most cardholders as each point can be worth 1.25 cents although mortgage down payment credits are worth 1.5 cents. You can also check out our Bilt Credit Card Review to learn more.
Plastiq
The information for the Plastiq has been collected independently by Johnny Jet. The card details on this page have not been reviewed or provided by the card issuer.
Individuals can pay rent through Plastiq and only pay a 2.85% processing fee. While pricey, it’s slightly lower than the 3% industry average.
RentTrack
The information for the RentTrack has been collected independently by Johnny Jet. The card details on this page have not been reviewed or provided by the card issuer.
It’s possible to easily make paying rent build credit through RentTrack. This service has a 2.95% credit card processing fee or a $4.95 ACH transaction fee. Each rent payment automatically reports to the three credit bureaus.
Benefits of Paying Rent With a Credit Card
Here are several advantages of using a credit card for rent.
Earn Credit Card Signup Bonuses
With the national average rent payment at $2,100 per month, it’s easy to meet the spending requirements for limited-time credit offers.
You will also be able to earn credit card rewards on the monthly rent day payment after receiving the signup bonus. However, you must determine if the rewards are worth more than any processing fees you may encounter.
This point-earning strategy is similar to paying taxes with a credit card. While you’re likely to pay a fee, the net benefit can be worth it.
Can Build Credit
Another reason you might want to pay rent with a credit card is to help build credit. Some rent payment platforms report your payments to the Experian, Equifax, and TransUnion credit bureaus. Typically, only loans and revolving credit accounts report and the only housing payment to traditionally report is a home mortgage loan.
You can also use a free service like Experian Boost to improve your score from this bureau.
Related: What Is The Best Credit Card To Use For Paying Rent?
Disadvantages of Paying Rent With Credit
Unfortunately, using a credit card as your preferred payment method sometimes isn’t worth the effort. Here are a few reasons why you don’t want to pay rent with a credit card.
Expensive Processing Fees
Most landlords and rental companies pass the credit card processing fees onto the tenant if they wish to pay with plastic. The fee is usually between 2.5% and 3.5% with most payment platforms.
When the fee isn’t clearly disclosed upfront, ask if there’s a discount to pay with a check, cash, or bank draft. If so, the fee is baked into the monthly price and is a “hidden fee.”
In most situations, you may decide to only pay with a credit card when you’re working on earning a welcome offer. After that, consider switching back to a cheaper payment option.
One notable exception to this negative is using the Bilt World Elite Mastercard® as neither party pays a fee.
High Credit Utilization Ratio
Unless you have a high spending limit or make mid-cycle balance payments, charging rent to your card will result in an unhealthy credit utilization ratio.
Credit experts suggest only using 30% of your card’s total spending power at a time to prevent a credit score drop.
Consider making a partial payment after Rent Day to reduce your balance to less than 30% of your credit limit.
Potential Interest Charges
Using your credit card to pay rent might seem like a lifesaver if you’re struggling to pay rent and life’s other expenses. It can also be cheaper than payday loans and title loans. However, you will pay interest charges on any remaining balance after the payment due date.
Final Thoughts
It’s possible to pay rent with a credit card, although most options charge expensive fees that only make it worth it when you can earn a signup bonus. However, the Bilt World Elite Mastercard® defies the standard as it’s fee-free and it has valuable point redemption options.
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