Can You Pay Rent With a Credit Card?
Figuring out the best way to cover your monthly expenses can be tricky. So can knowing which payment method might work out best in terms of saving money or earning rewards. With rent, you might be wondering how to keep up with the payments or if you can get any benefits from the payment option you choose.
You might be considering paying your rent with a credit card if you have a landlord that allows it. But is it right for you?
- You can pay your rent with a credit card in some cases. But even when it’s permitted by your landlord, it’s a good idea to consider the pros and cons first.
- You can weigh potential rewards against costs when deciding whether making a rent payment with a credit card might be useful to you.
- Consider whether you could pay the credit card bill each month. Missed or late credit card payments can affect your credit and lead to late fees and higher interest rates.
- If paying your rent with a credit card causes you to come close to maxing out your available credit, this can and probably will hurt your credit scores.
Paying Rent With a Credit Card: Is It Possible?
Yes—it’s possible to make your monthly rent payment using a credit card. That’s if your card’s credit limit can cover it and your landlord allows it.
How to Pay Rent With a Credit Card
If your landlord accepts rent payment via credit cards, you can usually make your monthly payment to them in person or online—just like you would with a debit card.
Do You Need a Specific Type of Credit Card to Pay Rent?
Generally, you don’t need a specific type of credit card if you’re using one to pay rent. But bear in mind that some credit cards offer specific benefits that might be attractive to you. For example, you may be able to earn rewards, like cash back, points or miles, when you pay bills with a credit card.
Is Paying Rent With a Credit Card Considered a Cash Advance?
A cash advance lets you borrow a certain amount of money against your credit card’s line of credit. But it can come with fees and higher interest rates than typical credit card purchases do. For your specific terms, you can check your credit card account terms or contact your issuer. You could also ask your landlord how they might process the transaction.
If you’re using a cash advance to withdraw money and cover rent, yes, the withdrawal would be considered a cash advance. Be sure to consider potential interest charges and fees if you decide to do it.
Pros and Cons of Paying Rent With a Credit Card
Here are a few benefits and drawbacks to consider before you decide to pay your rent using a credit card.
- If you use your card responsibly over time, it can help you build a credit history and improve your credit score.
- You may be able to take advantage of your credit card’s digital benefits. For example, Capital One offers Bill Pay, which can help you pay your bills on time.
- Depending on your card, you may be able to earn rewards, like cash back, points or miles, when you pay your rent with a credit card.
- If done responsibly, temporarily paying your rent with a card could help ease a financial burden in a time of emergency.
- Depending on your credit card’s interest rate and processing fees, you could spend more over the course of your lease paying with a credit card than if you used a debit card, check or direct deposit.
- By using a credit card to pay rent, you’re creating another bill to pay. So make sure you understand the terms of the credit card and can pay the bill on time.
- If you don’t use your card responsibly, using a credit card to pay rent could hurt your credit score. For example, the Consumer Financial Protection Bureau recommends making payments on time, every time; paying your balance in full, if possible; and keeping your credit utilization ratio under 30%.
Credit Card Rent Payment in a Nutshell
Paying your rent with a credit card might be possible if your landlord allows it. It can be a helpful option for those looking to get cash back, earn rewards or temporarily ease a financial burden. But it needs consideration.
You can decide by weighing the pros and cons, like whether it could help you build credit or how much, if any, in fees you’ll have to pay. If you decide to pay your rent with a credit card, keep in mind these tips on how to use a credit card responsibly.
Looking for the right credit card for expenses outside of your rent payments? Check out these credit card options from Capital One.
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