While landlords once accepted only checks or money orders, new payment technology has made it easier than ever to pay rent online with a credit card. That flexibility can give you extra time to come up with the cash to cover your rent, and it can also help you earn travel rewards or cash back on one of your largest monthly expenses.
But there are some notable downsides to paying rent with a credit card, including potential fees for third-party services and interest charges that can add up fast. Because of these additional charges, using a credit card for rent typically only makes sense in emergencies — or when the rewards for doing so outweigh the costs.
Can you pay rent with a credit card? And how exactly do you go about it? Read on for an overview of ways to pay rent with plastic and scenarios where it actually makes sense.
How do you pay rent with a credit card?
If you live in an apartment complex run by a single property manager or management company, it’s fairly likely you already pay your rent online. Nowadays, most new apartment complexes are modernly equipped, offering online portals where tenants can handle maintenance requests, read community announcements and pay rent. Generally, though, free rent payment options are limited to syncing a bank account for an automatic monthly withdrawal or to debit card transactions. There is often an option to pay rent with a credit card, but for a fee; usually 2% to 3% of your total rent cost.
If your apartment is run the old-fashioned way, where you mail a check to your landlord each month, you may still have options for paying rent with a credit card. Really, the decision will come down to your landlord, who might only accept traditional paper checks or money orders. Even if that’s the case, it may be possible to buy gift cards with a credit card, then use those gift cards to purchase money orders for rent.
An alternative to paying your landlord directly is to pay them through a third-party service like Venmo or Plastiq. Using a credit card for these services comes at a price (again, usually 2% to 3% of your total rent cost), but it gives you the convenience of being able to handle everything electronically, even if your landlord only accepts paper checks.
Simply make your payment online, and these services will either transfer funds electronically to your landlord or mail them a physical check on your behalf. Just be sure to pay close attention to the details of the offerings. Some require that your landlord have an account (such as Apartments.com), and others don’t (like Plastiq). This is important because some landlords might not be willing to do much besides cash a check.
Another important thing to note is that some of these services are free or cheap to use if you’re not using a credit card to make a payment. So even if you’re just looking for an alternative to snail mail, one of these third-party services could be a good fit.
Some popular services include:
Credit cards that let you earn rewards on rent
While fees can apply, paying rent with a credit card can help you earn cash back or travel rewards for every dollar you spend. Just remember that carrying a balance typically means paying exorbitant interest charges on your lingering rent debt, and that this interest will erase the benefit of the rewards you earn in a hurry.
Beyond traditional cards, you can now find rent-specific options, like Bilt’s lineup of products, that allow you to earn rewards on rent and mortgage payments without actually charging them to your credit line; instead, the funds are withdrawn from a linked checking account, effectively bypassing transaction fees while still racking up points.
Bilt now offers three credit cards with their own unique benefits and annual fees that range from $0 to $495 — Blue, Obsidian and Palladium. Not only do Bilt credit cards let users earn rewards on rent and other types of spending, but they come with additional benefits like Bilt Cash, travel insurance benefits and annual hotel credits.
➤ LEARN MORE:How Bilt works: A simple guide to earning and redeeming rewards
When should you pay rent with a credit card?
When fees apply, it rarely makes financial sense to pay rent with a credit card. However, there are instances where this move could make sense anyway.
In an emergency
Lose a job? Have a major medical bill to pay off? Car break down? Sometimes things happen that can put you in a tight spot financially. If you’re a little short on cash, paying rent with a credit card can help get you out of a bind, but remember to pay your credit card bill in full as quickly as possible to avoid interest charges.
If you’re going to take this route, use a credit card with a 0% intro APR period if possible. Cards offering an extended interest-free period on new purchases will give you some extra time to pay off your balance without any additional charges.
Even if you have to pay a third-party service convenience fee once or twice, at least you won’t have to pay any interest charges (that is if you pay your credit card balance in full before the intro period expires). The rewards earnings can also help you come out, not quite ahead, but in better shape than you’d be with a card offering no rewards at all.
To help earn a new cardholder welcome bonus
Credit card welcome bonuses are a highly effective way to jumpstart your rewards; however, the spending thresholds required to unlock these bonuses can sometimes be higher than your typical monthly budget. To bridge that gap, many cardholders choose to consolidate all their regular spending onto the new card during the introductory period. Others time their application to coincide with a major upcoming expense they’ve already planned for.
Using your card for a recurring large expense like rent is another strategic way to meet these requirements. Even if you have to pay a third-party processing fee, the math often works in your favor. If a one-time fee helps you secure a substantial welcome bonus, that cost is usually a small price to pay for the overall value you receive in return. Additionally, when you factor in the standard rewards points you’ll earn on the transaction itself, the effective cost of the fee drops even further. As long as the value of the bonus significantly outweighs the processing fees, using your card for rent can be a savvy move to ensure you don’t leave those rewards on the table.
If there is no fee
In the unlikely event you find a third-party service or landlord that doesn’t charge a fee to pay your rent with your credit card, you can consider it. Some property managers may waive fees or cover them for you. It’s also possible your landlord would be willing to cover the additional cost to ensure rent is paid on time each month.
You could also use Bilt credit cards to pay your rent without any transaction fees. Just remember that your rent isn’t charged to the card itself — instead, it’s pulled directly from a checking account you connect to your card.
In these scenarios, it can make sense to pay your rent with a credit card, especially if you’re using a rewards card. Many credit cards offer 1% on “other” purchases outside of bonus categories, and an array of cards offer a flat 2% cash back on everything you buy. Just remember to pay your credit card bill in full and on time, or else interest charges will cancel out any rewards you earn.
Can you pay bills with a credit card?
The short answer is yes — usually. But whether you should depends entirely on the math.
Many recurring expenses like utility, gas, water, and insurance bills can be paid online. While these are often free to pay via debit card or a synced bank account, most providers also accept credit cards. The catch, as always, is the convenience fee.
Fees for these services vary significantly. For instance, paying a utility bill might come with a flat $2.39 fee, while a gas bill might be lower at $1.49. In the past, I skipped the credit card option for these smaller bills because the rewards didn’t justify the extra cost. However, as I’ve optimized my rewards strategy, I now find that the points earned actually outweigh those flat fees, making credit cards my preferred payment method.
On the other hand, some expenses — like car or health insurance premiums — can often be paid with a credit card with no fee at all (provided you pay the insurer directly rather than through payroll deduction). In these cases, using a credit card is a no-brainer; even if the rewards seem small monthly, they add up to significant value over the course of a year.
Ultimately, the goal is to ensure you’re benefiting from the transaction. Whether you’re using the card to earn “worth it” rewards after fees or simply to buy a little extra time when cash flow is tight, the math should always land in your favor.
