If your rent is due soon but you don’t have enough money to pay for it yet, you may consider paying with a credit card. If you’re wondering whether or not you can pay rent with a credit card, the answer is yes, however this might not be something you should do.
There are some consequences to paying rent with a card, so be sure to consider all the pros and cons before you make this decision. Be sure to keep reading to learn more about paying rent with a credit card.
Table of Contents
How To Pay Rent With a Credit Card
Although it is possible to pay rent with a card, the majority of landlords usually only accept checks. However, you can still pay with a credit card, but you will need to use a third-party service, which charges you a fee for this service.
Some companies that offer this service include Venmo, Plastiq, RentShare and Avail. Furthermore, you may have the opportunity to build your credit because some companies may report your payment to credit bureaus.
Pros and Cons of Paying Rent With a Credit Card
- You might need to reach a credit card spending requirement in order to receive a reward or extra points
- Good if your rent is due before pay day
- Your credit score can improve if the company you’re using reports to credit bureaus
- There is a fee for this service
- You might lose money if the fee is greater than the cash-back rewards on your credit card
- It will increase your utilization ratio, which is the amount of credit you’re using versus the amount you have available
Who Should Pay Rent With a Credit Card
For the most part, you shouldn’t pay rent with a card if you can avoid it. A lot of people don’t pay off their credit card each month, so the amount of interest on a rent expense will be very large. In addition, you will also have to pay the fee the company charges. However, some companies offer a cheaper price and even offer the ability for your landlord to waive the fee. I would only recommend paying with a credit card if you are able to pay off your credit card on time.
Overall, you are able to pay rent with a credit card, however be sure to consider all the pros and cons of this. Furthermore, I only recommend doing so if it is absolutely necessary.