Can I Pay Rent With a Credit Card?

Using a credit card to pay your rent has its advantages. For starters, you don't have to go through the trouble of writing a paper check and waiting for it to be cashed.

Plus, it gives you flexibility. If your rent is due before payday, you can cover the expense with your card and pay yourself back when your paycheck arrives, all while avoiding an awkward conversation with your landlord about late fees.

Even if your landlord doesn't accept credit card payments, you still have options. Some rent payment services will facilitate credit card payments — for a fee. It’s convenient, though it may end up costing you more than you would have paid if you'd simply opened your checkbook. These days, though, you may be able to avoid such processing fees on rent payments, and even earn rewards on those payments, with the right credit card. (See below.)

Ways to pay rent with your credit card

Several options offer tenants the opportunity to make rent payments online. Some require your landlord’s involvement, while others don’t.

Plastiq

Plastiq lets you pay your landlord with a credit card, and it doesn’t require your landlord to have an account. You pay Plastiq a fee equaling 2.99% of your payment every time you use a credit or debit card. Payments can be made manually or scheduled automatically. Plastiq then cuts your landlord a check or delivers an electronic payment.

PlacePay

PlacePay, formerly known as RentShare, requires landlords to accept direct deposit. It charges a fee of 2.99% for every credit card or debit card payment, and a $1.95 flat fee per ACH payment — a payment made directly from your bank account. The platform allows roommates to split the cost of rent and choose their own payment method. You can schedule payments automatically or pay manually via the mobile app for iPhone and Android devices.

A loan from your credit card

Some credit card issuers, including Chase and Citi, let eligible customers turn their available credit limit into an installment loan. The funds are deposited into your bank account, which you could then use to pay your rent. There’s a set term to repay the loan, with a fixed monthly payment and interest charges that are often a good bit lower than your card's normal ongoing APR. There’s no loan application process, and therefore no new hard inquiry that would otherwise end up on your credit report. It's not an ideal long-term option, as you don't want to keep floating rent this way with no plan for repayment. But in an emergency, it's a better option than a cash advance.

» MORE: Card issuers are offering cheaper ways to access your credit line

A cash advance

As a last resort, you can indirectly pay rent with your credit card if you withdraw money on your credit limit from an ATM or with a convenience check. But a cash advance is the most expensive and riskiest option. There’s typically a cash advance fee, plus a higher interest rate that goes into effect immediately. The longer you maintain the balance, the more it costs. Plus, the issuer may also limit the amount of available credit you can withdraw, so you may not be able to cover the full amount of your rent.

» MORE: Can you pay your mortgage with a credit card?

Credit cards that earn rewards on rent

The Bilt Blue Card, Bilt Obsidian Card and Bilt Palladium Card do not require your landlord’s involvement, and all three cards offer ways to earn rewards on rent payments, as well as ways to avoid or cover transaction fees. You'll have to pick between two rewards-earning options:

• If you choose Option 1, you won't owe a transaction fee for paying rent with a Bilt card, but the amount of Bilt Points you accrue on that payment will depend on how much non-housing spending you put on the card.

• If you choose Option 2, there will be a 3% transaction fee, but you can "cover" it with Bilt Cash, which is a secondary rewards currency (different from Bilt Points) that you can earn on non-housing spending.

Notably, you don’t actually use a Bilt credit card itself to pay your rent, so your credit line doesn't need to match or exceed your monthly rent.

Instead, you'll link a bank account with Bilt. If you’re part of the Bilt Rewards Alliance — a collection of property management companies that have a partnership with Bilt — you can then process your rent payments directly through the Bilt Rewards app. If you're not part of the alliance, you can still use BillPay, also through the Bilt app, or you can choose Venmo or a paper check.

Whichever method you use, your rent payment is withdrawn directly from your linked bank account.

Drawbacks of paying rent with a credit card

Although paying rent with a credit card is convenient, it may not be the best move for your budget. Consider the following factors first:

Fees

Some payment services tout the opportunity to "earn rewards on your rent" — but the service's processing fee can eliminate any reward earnings. If you have a rent payment of $1,000 and you’re paying a 2.99% processing fee, that’s an additional $29.90 every month.

Credit card reward rates vary, but most won't exceed the cost of that fee. Exceptions exist: If your rent payment can help you meet the spending requirement for a hefty credit card welcome bonus, then it might be worth paying the processing fee. Or, as noted above, you could opt for one of the Bilt credit cards — but keep in mind that those cards are fairly complex, and two of them charge annual fees.

In some cases, ordering checks from your bank and paying your rent the old-fashioned way may still make the most sense.

Interest payments

It can be tempting to put rent on a credit card if you want to free up that money for something else, or if you can't afford it that month. But if you don’t pay your credit card bill in full every month, the interest payments on your ongoing balance can pile up. Add that on top of the processing fee for the convenience of using a credit card, and your total costs escalate.

Effect on your credit scores

Paying rent with a credit card could affect your credit scores by increasing your credit utilization ratio — the total amount of debt you have compared with the amount of available credit you have. If, for example, you have a $10,000 credit limit and a $5,000 balance, your credit utilization would be 50%.

Your credit utilization ratio is a key factor in your credit score, so typically you should aim to keep it low, generally at no higher than 30%. But putting thousands of dollars in rent on a credit card can temporarily push that ratio higher.

Of course, if you’re struggling or experiencing an emergency and have no other immediate option, it may be necessary to make such a transaction. Just remember that as long as you keep up with your bill and can pay it back over time, your credit scores will eventually bounce back.

Still, aim to exhaust all other options before going that route.

If you want to pay rent with a credit card, consider doing it with the credit card that has the lowest interest rate, and try requesting a credit limit increase from your issuer first. And then, of course, pay off the amount in full every month, or contribute as much as possible.

Benefits of paying rent with your credit card

You’ll still have to consider the factors above, but in some instances it might make sense.

Potential rewards

One time when it is ideal to pay rent with a credit card is when you can earn rewards that far exceed the cost of the processing fee in value. This is usually the case if you’re trying to meet the minimum spending requirement on a card’s welcome bonus, or if the card offers other incentives, as the Bilt cards do.

Cash flow flexibility

You can use a credit card to pay rent to free up your cash flow and buy yourself some time until the next statement due date. This benefit alone isn’t worth paying a processing fee, unless you can bundle it with the potential for rewards that offset the cost. It’s also not one you should rely on every month considering the potential impact to your credit.

Should you pay rent with your credit card?

If you're looking for flexibility and want to avoid the hassle of writing checks, paying rent with a credit card can be a good option — especially if you pay your credit card bill in full every month and you're earning rewards that can help defray the cost of convenience fees.