Can I Pay Rent With a Credit Card?

Rent is probably the biggest bill you pay and one of the few that usually earns you nothing back. Services like Chexy, Plastiq and TenantPay can charge it to a credit card and forward the money to your landlord.

The trade-off is the fee. The three services covered below charge between 1.75% and 2.99% for credit card payments, before any additional delivery charges, so a card earning 1% will still leave you behind. A higher recurring-payment rate, a valuable welcome bonus or a second layer of platform rewards can change the math.

This strategy works only if you already have the money and pay the statement in full. Carry the balance, and credit card interest can wipe out a year of rewards very quickly.

Credit card issuers generally report your card balance and payment history to the credit bureaus. That’s different from reporting the rent payment itself.

Unless you use a dedicated rent-reporting program, your credit report will show credit card activity, not a record that you paid rent.

» MORE: Should you pay bills with a credit card?

Start with the simplest option: ask whether your landlord or property manager already accepts credit cards.

Some large property managers let tenants pay by credit card through an online portal. Before you pay, check the fee and which cards are accepted. You should also confirm whether the charge will count as a regular purchase and whether you can set up automatic payments.

Paying your landlord directly doesn’t normally add rent payments to your credit report. Your card issuer may still report the resulting balance and your subsequent credit card payments as part of your regular credit account.

Chexy charges your card a few business days before rent is due, then delivers the payment to your landlord using the payment method configured in your account, such as Interac e-Transfer or direct deposit. Your landlord doesn’t need to sign up for Chexy but must be able to receive the selected payment method.

The fee is 1.75% per payment when you use a Canadian-issued Visa, Mastercard or American Express card. International cards carry a higher fee.

You may earn cash back, points or miles based on your card’s terms, earn-rate limits and how the issuer processes the transaction. Chexy charges the card but does not issue the underlying credit card rewards.

Chexy also has promotions and a referral program worth checking out that may reduce the processing fee or grant additional rewards.

You can opt into Chexy’s free Credit Builder feature, where Chexy reports each on-time rent payment to Equifax without a hard credit check. Rent reporting may help build credit history, but it doesn’t guarantee that your credit score will increase.

Plastiq lets you charge rent to a credit card even if your landlord doesn’t accept cards or has a Plastiq account. You provide the payment details, Plastiq charges your card, and it sends the money to your landlord electronically or by cheque.

Plastiq’s base card-processing fee is 2.99%. Additional charges may apply depending on the delivery method, the card’s country of issue or whether you request expedited delivery.

Plastiq does not offer its own rewards program. Whether the payment earns card rewards, and how it is classified, depends on the card and issuer. Plastiq has card-specific restrictions, and some cards may not earn rewards on its transactions, so make sure to review the applicable policy before paying.

Delivery can take several business days, particularly by cheque, so schedule the first payment early. A Plastiq payment doesn’t by itself add rent payments to your credit report.

» MORE: How to earn credit card rewards on rent, taxes and other bills

TenantPay accepts pre-authorized debit, Visa Debit, Visa credit cards and Mastercard credit cards. Its current fees are $4.99 for pre-authorized debit, 0.99% for Visa Debit, 1.75% for Visa credit cards and 2.75% for Mastercard credit cards. American Express is listed as coming soon.

Every payment method earns TenantPay Points and entries in the service’s rent draws. Credit card payments can also earn the card issuer’s rewards, allowing renters to stack the two programs.

You can redeem the TenantPay Points you earn for rent credits or gift cards. The value depends on the redemption, and reward estimates may include points earned through early payments, account activity and referrals rather than the rent payment alone.

TenantPay automatically reports eligible on-time payments to Equifax for free. It doesn’t report to TransUnion.

Whether your landlord needs to be involved is less clear. TenantPay’s current renter pages say no, but some of its other materials describe accounts set up by landlords or property managers. Check with TenantPay before making your first payment.

If a credit card is your only source of available money, you could take out a cash advance and pay your landlord through their usual method.

This is generally one of the most expensive options. Cash advances commonly carry a transaction fee and a higher interest rate than regular purchases. There is no grace period, so interest starts accruing on the day you receive the money.

Before using a cash advance for rent, compare the cost with lower-interest options such as a line of credit or personal loan, if available.

Credit card cheques, also called convenience or promotional cheques, work much like personal cheques but draw from your credit card account.

Your landlord must accept cheques, and your card issuer must have provided the cheques to you. Interest generally starts on the day the cheque is used, often at a rate higher than the card’s purchase rate.

Promotional cheques may carry a lower rate temporarily, but the terms and payment-allocation rules can be complicated. They generally don’t earn credit card rewards.

Paying $2,000 in monthly rent by credit card puts $24,000 of annual spending through the card. Whether that produces value depends on the card, the service fee and how the transaction is classified.

A quick way to estimate the annual value is:

Also worth knowing: even when rent payments are marketed as eligible recurring payments, your card issuer and network will ultimately determine how a transaction is classified. Try one payment and confirm the earn rate before building an annual strategy around it.​

A rent payment may also help you reach the spending requirement for a welcome bonus. Paying a processing fee once or twice can be worthwhile if it unlocks a bonus worth hundreds of dollars. This only works if you already budgeted for rent and can pay the balance in full.

Platform rewards can add another layer. TenantPay Points, fee reductions, referrals or temporary promotions may improve the result, but use the value you can realistically earn and redeem. A rewards calculator that assumes multiple referrals or extra activities can make the ordinary rent payment look more valuable than it is.

» MORE: Common types of credit card fees

Interest

Standard credit card purchase rates are often around 20% or higher. Any rewards you earn can be overwhelmed quickly if you carry the rent balance beyond the payment due date.

If you’re paying through a third-party service, confirm that the transaction posts as a purchase. Cash advances, credit card cheques and other cash-like transactions begin accruing interest immediately.

Not into math? Try out out credit card interest calculator

Credit utilization

Putting rent on your card can produce a large jump in your credit utilization ratio, which compares your credit card balances with your available credit.

For example, charging $2,000 to a card with a $5,000 limit would use 40% of that card’s available credit before accounting for any other purchases.

It’s best to use less than 30% of your total available credit. That isn’t a hard cutoff, but lower utilization is generally better. A high balance may affect your credit score even if you eventually pay the statement in full.

If you’re paying rent by card for rewards, aim to pay down the charge as soon as possible rather than waiting for the due date to keep your outstanding balance and credit utilization lower.

» MORE: How to use a credit card wisely

Rent reporting

Paying rent with a credit card doesn’t automatically place your rent payments on your credit report.​

Your card issuer may report your balance and whether you pay your credit card bill on time. A rent-reporting service separately sends your rental payment history to a credit bureau.

On-time rent reporting may help someone with a limited credit history. Depending on the program, missed or late payments may also be reported and hurt rather than help. Review the reporting terms before opting in.

When you make your payment

Give yourself some room here. An expired card, limited available credit, or an issuer blocking a charge as possible fraud could all cause a failed payment. Third-party services can also take a few business days to get the money to your landlord.

Schedule your first payment early and make sure it actually arrives. Keep a backup way to pay until you know the process works. A problem with the card or service won’t change when your rent is due.

» MORE: When is the best time to pay my credit card bill?

Paying rent with a credit card can make sense when:

Avoid it when: