Rent is likely your biggest expense every month, but it seems like virtually every landlord prefers just one payment method: Good old-fashioned checks.
With all of those miles and points you can earn for credit card rewards, charging your rent to a rewards card sounds appealing. Read on to find out how to pay rent with a credit card, and whether or not it makes sense for you.
How to set up rental payments with a credit card
Paying your rent with a credit card is not as simple as paying with a check, but the rewards can be well worth your while. In general, there are two methods to do this: through your landlord’s payment center, or through an online credit card bill payment platform.
Use your landlord’s payment system
Can you pay rent with a credit card through your landlord’s current system? If you rent from a large company or have a landlord using an online tenant management platform, you might already be able to.
I live in an apartment managed by a company that uses RentPayment. I can pay my rent directly from my bank account for $4.95, with a debit card for a 0.95% fee, or a credit card for a 2.95% fee.
Going with their credit card option would leave me with nearly $70 in fees every month, but using my bank’s bill pay is free, so that’s how I pay my rent.
However, that doesn’t mean I’ve never considered paying with a credit card for a month or two to earn a major signup bonus.
Try a third-party company
If your landlord does not offer online rent payments or you would have to pay a high fee like me, there are other options available.
Companies such as RentShare and RentTrack give you the option to pay your rent with a credit card. When you do, the vendor will charge your card and either mail your landlord a check or direct deposit the funds to your landlord’s bank account.
One of the most popular options for paying rent with a credit card is Plastiq. They generally charge 2.5% for credit card payments (one of the lowest fees around), but there are often promotions where you can pay even less.
You will need to plan ahead with this method; according to some reviews, paper checks can take up to two weeks to deliver, so if you decide to pay your rent with Plastiq make sure to send it early enough to avoid a late fee.
Do the math for yourself to decide
It’s certainly possible to pay rent using a credit card, but are those 2 to 3% fees worth it? Let’s do the math and find out.
For a simple example, assume your rent is $1,000 per month. If you were to pay your rent directly to your landlord with a check, your annual cost for rent is $12,000 per year.
Using Plastiq, you would pay an additional 2.5% in fees, assuming you didn’t use a promotion. That’s $25 per month, or $300 per year, in fees.
If you use the Chase Sapphire Preferred card, one of the best cards for travel hacking, you would charge $12,300 per year for rent to your card. Assuming you get 2 cents per point for the card’s reward program, you would earn 12,300 points worth $246.
It’s a narrow margin, but you would be losing money by paying with a credit card in this case. It would cost you $300 to use your credit card, but you’d only earn $246 back in rewards.
To break even, you have to get at least 2.4 cents in value from your miles and points to make it worthwhile.
That’s tough to pull off, but completely possible. If, for example, you use your points for international business class flights, you can get about three times that per point.
The decision to use your rewards credit card to pay your rent should be made carefully. Consider what card you want to charge rent to, study its reward program, and decide how to use your miles and points to your biggest advantage.
Do your habits allow you to pay rent with a credit card?
Now that you know how to pay rent with a credit card, it’s important to decide if you should pay rent with a credit card. Everyone has different habits when it comes to credit cards, and getting into debt to pay the rent can be a big personal finance mistake.
If you want to pay rent with a credit card, you need to pay off your bill in full and on time every month to avoid finance charges. This will ensure you improve your credit score and don’t end up spending hundreds or thousands of dollars on interest and fees.
If your history with credit cards is anything but perfect, you should seriously consider whether or not this is worthwhile for you. If there’s a chance that paying your rent with a credit card will lead to future money problems, don’t risk it.
Paying rent with your credit card can be smart
Paying your rent with your credit card is not only possible, but in some cases, it can make a lot of sense. Even if you would lose money paying your regular rent with your credit card, paying for just one or two months could be enough to help you reach a big signup bonus.
To decide what’s right for you, consider your rent amount, credit card fees, and how you use your credit card rewards.
Be strategic and plan ahead. In some cases, you’ll get a great deal. In others, you could end up losing money paying your rent with your credit card.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 6.97% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.30% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.47% – 6.30%1||Undergrad & Graduate|
|2.51% – 8.09%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.69% – 7.21%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|