How to Pay Rent with a Credit Card

The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate credit cards to write unbiased product reviews .

• Paying rent with a credit card is possible, but it comes with several pros and cons.
• Paying rent with a credit card will cost you additional money in interest and fees.
• If you're having trouble with rent, you can try working with your landlord on a payment plan.

The Possibility of Paying Rent with a Credit Card

Many landlords and property management companies now offer the option to pay rent with a credit card, facilitated by third-party online payment platforms. This payment method provides convenience and the opportunity to earn rewards or cash back on a significant monthly expense. However, it's crucial to consider the potential transaction fees, as these can offset the benefits of any rewards earned.

Benefits of Paying Rent with a Credit Card

Earning Rewards and Cash Back

One of the benefits of paying rent with a credit card is being able to utilize a rewards card. You can accumulate significant points, miles, or cash back, especially if rent is your largest monthly expense, and really reap the rewards.

Building Credit History

Consistent, on-time credit card payments, including for large transactions like rent, can positively impact your credit score over time.

Avoid Late Payment Penalties

If you use third-party services for credit card rent payments, they will most likely come with payment guarantees. This means you won't be responsible for late fees .

Potential Drawbacks and Costs

Transaction Fees

Paying rent with a credit card often comes with a transaction fee, typically ranging from 1% to 3% of the payment amount. This can significantly reduce the financial benefits.

Risk of Carrying a Balance

If you're unable to pay off your credit card balance in full each month, interest charges can quickly accrue, leading to debt that far exceeds the original rent amount.

Impact on Credit

Paying rent with a credit card can result in a high credit utilization ratio , which can damage your credit score.

How to Pay Rent with a Credit Card

To pay rent with a credit card, first verify with your landlord or property management whether they accept credit card payments directly, or through a third-party service. Always calculate the cost of any transaction fees and how they stack against the rewards earned to make sure it's financially beneficial.

Strategies to Maximize Rewards and Minimize Costs

Choosing the Right Credit Card

Opt for a credit card offering high rewards on everyday purchases or with a significant sign-up bonus to offset transaction fees.

Paying Off the Balance Monthly

To avoid interest charges, ensure you can pay off the balance in full each month. Make certain that you maintain a budget that accommodates your rent payment as a credit card expense.

The Bilt Mastercard is the first credit card to offer rewards for paying rent without paying additional transaction fees — and you can redeem your points for travel, merchandise, and more. Compare the best credit cards to find the option that works best for you.

FAQs

Can all landlords accept rent payments via credit card?

Not all landlords or property management companies accept credit cards due to transaction fees and processing requirements. It's essential to check with your landlord directly.

Are there ways to avoid transaction fees when paying rent with a credit card?

Some landlords may absorb the transaction fees, or you may find promotional offers through payment platforms that waive fees for the first few months.

How do I know if paying rent with a credit card is worth it?

Calculate the net benefit by subtracting any transaction fees from the rewards or cash back earned. Consider the impact on your credit score and the potential for interest charges.

Can using a credit card for rent payments impact my credit score?

Yes, positively if you manage payments well, but carrying a high balance can negatively affect your credit utilization ratio, lowering your score.

What should I do if my landlord doesn't accept credit card payments?

Look into third-party payment services that allow you to pay rent with a credit card, which will then remit payment to your landlord, though fees may apply.