Finance Credit Cards

Best Credit Cards For Rent Payments

Best Credit Cards For Rent Payments
Best Credit Cards For Rent Payments

Are you looking for the Best Credit Cards For Rent Payments? If Yes, ou are at the right place.

In this article, we are sharing all the information about Best Credit Cards For Rent Payments.

Among the millions of Americans who rent a home, have you ever wondered if you can use a credit card to pay rent? You should use a credit card to pay rent for various reasons – for example, if you don’t have the money this month, I’d like to do it indefinitely. If you use the right credit card, you will be able to earn a lot of rewards on such a large bill.

Just about anyone can use a credit card to pay rent. This usually involves large fees, and your credit score may be temporarily lowered.

Most people have rent or mortgage as one of their most recurring expenses. These monthly balances can be paid without additional fees if you have a bank account. Most landlords and banks would lose 2%-3% of monthly rent or mortgage payments if they accepted credit cards without a surcharge due to bank interchange fees.

Can You Use Credit Cards For Rent Payments?

Can You Use Credit Cards For Rent Payments?
Can You Use Credit Cards For Rent Payments?

The possibility of paying rent with a credit card exists, but your landlord or management company may not allow it. Payments by credit cards may be less likely to be accepted by independent landlords or small management groups because of processing fees and cumbersome collection processes. An organization that allows online payments may also offer credit card payment options (in addition to cash and checks).

There is a merchant processing fee associated with each credit card transaction. Merchants or their service providers pay this fee to credit card companies and networks, but your landlord might have a way out. Ensure you read your landlord’s fine print before using a credit card to pay your rent- landlords may charge you up to 3% in fees if they accept credit cards.

Rent can be paid with a credit card regardless of whether your landlord accepts credit cards. Many third-party programs allow rent to be paid without additional fees. Your rent can earn you rewards if you use the right card.

4 Best Credit Cards For Rent Payments

The use of a credit card for rent payments can allow you to earn thousands of extra points each month. We will now look at some of the best credit cards to maximize your rewards based on our understanding of the fees associated with paying rent with a credit card.

Here are the top 4 Best Credit Cards For Rent Payments

Bilt World Elite Mastercard

Bilt World Elite Mastercard
Bilt World Elite Mastercard

Bilt World Elite Mastercards are free of annual fees and offer one point for every dollar spent on rent (up to 100,000 points each year) plus three points for dining, two points for travel bookings (booked through Bilt Travel Portal or directly with airlines, hotels, car rental companies, and cruise companies), and one point for other purchases.

Bilt cardholders can use their credit cards to pay rent even if their landlord doesn’t participate. By paying Bilt, cardholders can have a check written on their behalf and sent to the private landlord by Bilt. A cardholder’s credit score can also be boosted when they consistently pay on-time rent. Rewards can be redeemed for dining, travel, or future rent payments.

If you plan on applying for a Bilt card, ensure it will provide you with more than just the ability to pay rent. Bilt Rewards can be earned on travel, dining, and other purchases made with the Bilt Mastercard, but depending on your spending habits, you might be better off paying rent with a check or cash.

Southwest Credit Cards

Southwest Rapid Rewards Plus Credit Card
Southwest Rapid Rewards Plus Credit Card

Southwest Airlines credit cards are also a good option for obtaining points to qualify for the Companion Pass. If you fly with a travel companion for up to two years, you can reduce their flight fees and taxes (usually $5.60 one-way).

Get a Southwest credit card and earn bonus Rapid Rewards. The minimum spending requirement for a bonus offer can be met with the payment of rent. Additionally, these bonus miles count towards Companion Pass status.

Your card may also come with Upgraded Booking, Bonus Points on Card Anniversaries, and Tier Qualification Points (TQPs) if you qualify for A-List membership.

Capital One Venture Card

Capital One Venture Rewards Credit Card
Capital One Venture Rewards Credit Card

Capital One Venture card offers excellent travel rewards with an annual fee of just $95. There is a good welcome bonus offer and a good rate of earning miles on everyday purchases. Several different redemption options and earning valuable Capital One miles are available.

The card offers 2x miles on every purchase, making it an excellent choice for everyday spending. It is also a good card for non-bonus spending areas, such as rent, that are not available on other cards. Capital One Venture cardholders can earn 5x miles on hotels and rental cars booked through Capital One Travel.

The Capital One card allows you to earn Capital One miles. The value of Capital One miles is 1.8 cents per point based on our valuations. Using the Capital One Venture card for everyday spending, including rent, results in a 3.6% return on spending. The Capital One Venture card is a solid choice if you can pay rent with your credit card for less than 3.6%.

Capital One Venture X card

Capital One Venture X Rewards Credit Card
Capital One Venture X Rewards Credit Card

The Capital One Venture X card is undoubtedly one of the best credit cards available today. This ultra-premium travel rewards card has a huge welcome bonus offer, solid rewards-earning potential, and a wide range of travel benefits.

The bonus categories include an unlimited 10x mile for hotels and rental cars through Capital One Travel, 5x miles for flights through Capital One Travel, and 2x for all other purchases.

The Capital One Venture X card offers 2x miles on all non-bonus purchases, making it an excellent choice for paying rent. Capital One Venture X card, as does the Capital One Venture card, also offers Capital One miles, worth 1.8 cents per point. The Capital One Venture X card is an excellent choice if the fees associated with renting with a credit card are less than 3.6%.

How to Use Credit Cards For Rent Payments?

Regarding finding a credit card for paying rent long-term, the Bilt World Elite Mastercard is your best option due to its no-transaction-fee policy. A fee-free credit card with good rewards is one of the best ways to pay rent. Here are some additional tips for how to pay rent using a credit card:

  • Your Landlord Should Accept Credit Card Payments: Some landlords do not accept credit cards. If your landlord does not accept payments, you must find another option. 
  • Be Sure to Read the Fine Print: You must read the fine print on any credit card before signing up. Some cards restrict how you can use them for rent payments. You may only be able to pay rent once a month with some credit cards.
  • Make Sure You Pay Your Bills on Time: Your credit card bill will be charged interest if you don’t pay it on time. Your rewards can be quickly depleted if you do this.

If you want to meet the spending challenge more easily, consider rotating to the best limited-time credit card offers. It is common for outsized bonuses to exceed transaction fees.

Is Using a Credit Card a Good Idea for Rent Payments?

For several reasons, using a credit card to pay rent isn’t always a good idea.

Convenience Fees Apply

The costs of using a credit card compared to a check, money order, or direct deposit can erode your earning potential and exceed any benefits you receive. If your property manager accepts credit cards, compare the total costs of using a credit card versus paying via check, money order, or direct deposit.

Landlord Doesn’t Accept Credit Card Payments

Many small-time landlords only accept payments by check or cash, which can be deposited into their accounts by going to a physical branch or submitting a check via mobile device. As a result, tenants aren’t able to accept credit card payments because setting up the framework isn’t worth the hassle. 

Consider the Bilt World Elite Mastercard if your landlord previously said “no,” as it can effortlessly mail a check each month to the rent collector without any special signups from the landlord.

Too Many New Accounts

When applying for credit cards, you should time them so that you won’t open too many at once if you are paying rent to earn a signup bonus. There are different rules for credit card applications at each bank, but if you’ve opened too many new accounts recently, your application will likely be denied. 

To qualify for a Chase 5/24 card, applicants must have opened up to five credit cards within 24 months (or been added as an authorized user). If you are applying for a card from another issuer, the restrictions include applying for two cards within 30-60 days (depending on the platform used). You should also be aware of having too many accounts with one institution, such as five American Express cards.

Don’t Qualify for the Signup Bonus

Suppose you cannot qualify for the introductory offer on your new credit card. In that case, you should be strategic about using it to pay rent. Banks often limit bonus earnings to one every two years for existing and previous cardholders. As an example, you can only earn a Chase Sapphire bonus if you have a Sapphire card and have had a Sapphire bonus in the last 48 months. 

There are several strings attached to the Southwest credit card offer. The number of personal cards you can have at one time is limited. Between bonuses, there is a 24-month waiting period.

Advantages and Disadvantages of Paying Rent With Credit

Advantages of Paying Rent With Credit

A credit card is a convenient way to pay rent. Here are several advantages.

Earn Credit Card Signup Bonuses

Rent payments in the United States average $2,100 per month, so meeting the spending requirement for limited-time credit offers should be fine. You can also earn rewards on your monthly rent payments after you receive your signup bonus. Determining whether the rewards are worth more than the processing fees you might encounter is important. A credit card can earn points, similar to paying taxes. A fee may be involved, but the benefits can be worth it.

Can Build Credit

Building credit by paying rent with a credit card is also possible. A few platforms allow you to pay rent online and have Experian, Equifax, and TransUnion report your payments to their credit bureaus. Most commonly, only loans and revolving credit accounts are reported, and the only housing payment to be reported is the mortgage. This bureau also offers a free service called Experian Boost that can improve your score.

Disadvantages of Paying Rent With Credit

Using a credit card as your preferred payment method may sometimes be worth the effort. The following are some reasons why you should refrain from using a credit card to pay for rent.

Expensive Processing Fees

The processing fees associated with credit card payments are usually passed on to the tenant if the tenant wishes to pay with a credit card. Most payment platforms charge between 2.5% and 3.5%. Whenever the fee is not disclosed upfront, inquire about a discount for cash, check, or bank draft payments.

If so, the fee is baked into the monthly price and is a “hidden fee.” Only using a credit card may make sense when earning a welcome offer. If you want to make a cheaper payment option after that, consider using the Bilt World Elite Mastercard since neither party has to pay an extra fee.

High Credit Utilization Ratio

You will have a poor credit utilization ratio if you charge rent to your card without a high spending limit or mid-cycle balance payments. You should only use 30% of your credit card’s total spending power at a time to avoid a credit score drop. Consider paying partially after Rent Day to reduce the balance to less than 30% of your credit limit.

Potential Interest Charges

When you struggle to pay rent and life’s other expenses, using your credit card is a lifesaver. Additionally, it can be more affordable than payday loans and title loans. The remaining balance will, however, be subject to interest charges after the due date.

Should You Pay Rent with Your Credit Card?

You can pay rent with a credit card if you need flexibility and don’t want to write checks — especially if you pay off your credit card bill in full monthly and earn rewards that cover convenience fees.

The risk of putting rent on your credit card is higher if your credit limit is low or your income is unstable. Your wallet and credit score could be safe if you pay it off in time. Make the best decision for your situation after weighing the pros and cons.

FAQs Related to Best Credit Cards For Rent Payments

Is There Any Fee for Paying Rent with a Credit Card?

There are different fees for different apartment complexes. The use of a credit card for rent payment typically entails fees.

Does Paying Bills Build Credit?

If you don’t pay your rent or utility bills, it won’t impact your credit score unless you have fallen behind on payments to the point that your account has been sent to collections or the credit bureaus have reported your delinquency. The result is a negative impact on your credit.

Generally, your credit card and loan payments immediately impact your credit. A good strategy for building your credit is to use a credit card for what you can and then use cash for what you have charged monthly. Having a positive payment history will demonstrate that you are a responsible borrower.

Is It a Good Idea to Pay Rent with a Credit Card If Fees are Charged?

If the rewards you’ll earn outweigh the costs associated with earning those rewards, you should only consider paying rent with a credit card.

About the author

Vishal Agrahari

Vishal Agrahari is an experienced content writer and financial expert. With his creative and technical expertise in finance and credit cards, he creates content on AquilaResources that is both engaging and useful for readers. He brings a strong background in finance and credit cards that make bring authenticity to his content along with an interest in research to every project he works on.

Add Comment

Click here to post a comment