Can I Pay for the Rental by Credit Card?
Credit cards seem to be accepted for anything but rentals, as many landlords are outright ditching plastic to avoid 2-3% exchange fees on large transactions. But it is still possible to pay rent by credit card – if you are willing to pay a service fee that covers that 2-3%.
Is paying rent by credit card a good idea at all?
Credit card debt is expensive and can hurt your credit score. You should really only use a credit card for rent if you are confident that you can return it quickly. If you’ve run out of all your cash and are using a credit card as a last resort, first consider the United Way Alternatives Checklist . Also review your state and federal rights as a tenant and check out the list of eviction moratoriums provided by the Nolo legal education website.
However, there are some possible benefits of using refund cards to pay rent. As a large transaction, the rent can be used to quickly receive cashback rewards at minimal cost as part of the signup bonus. You can have, say, a $ 200 cashback bonus if you spend $ 1,000 over 90 days, with the rent covering most of those required costs.
Convenience is another benefit: If rent is due before payday, you can use your credit card and then get your money back as soon as your paycheck is credited. This works when you have a stable, predictable income, otherwise there is always a risk that you will not be able to return the amount due to an unforeseen event.
How can I use my credit card to pay rent?
Your first option is to contact the landlord directly and see if they will take your credit card. They probably won’t, but it’s worth a try. If they do, make sure you also ask about any possible “service” fees to avoid any surprises when the lease is due (some homeowners might try to charge you something crazy like $ 50 per transaction. which is their way of saying, “Leave me alone.”).
Third Party Applications
Your landlord may use (or wish to use) a third-party bill payment application that allows you to pay your rent with a credit card. These bill paying apps will send either bank transfers or checks in the mail in your name to the landlord with the option to repeat payments. Some commonly used apps include Plastiq , RadPad, and RentMoola . You can also use peer-to-peer services like Venmo or PayPal , although some landlords may prefer the formality of sending a check or tracking invoices that bill payment apps provide. Whichever you choose, you can’t avoid a 2-3% service charge.
Scheduling payments through third-party apps can cost convenience, but just remember that you are paying a service fee (for example, 3% costs you an additional $ 45 for rent, which is $ 1,500) and there are more convenient rental payment options like cash, debit by card, paper check or money order.