What if you could pay rent with a credit card?
Paying with plastic could give you a few extra weeks to cover the bill or evenhelp you earn rewards.
If your landlord offers it as an option, keep in mind there may be expensive fees and drawbacks.
Otherwise you could easily rack up credit card debt and hefty interest charges.
Like any decision, ensure the benefits outweigh the risks.
There are typically additional costs, and the landlord will likely pass those on to you during the transaction.
You input your landlord’s payment address and information before charging your card.
From there, your landlord can be paid via ACH transfer or a paper check sent by mail.
Plastiqcharges a 2.9% feefor card payments, which will be tacked on to your charge upfront.
Plastiq filed for Chapter 11 bankruptcy in 2023, although it is still operating and servicing customers.
The website remains up, but the company’s future is uncertain.
You also have to get your landlord on board with using them.
However, this app charges renters a 3.25% fee to pay with a credit card.
Cardholders can pay rent with theBilt Mastercardwith no transaction fees, provided their landlord accepts ACH payments or checks.
You have to make at least five purchases on the card each statement period to earn rewards.
Read more:Earn Rewards for Paying Rent or Mortgage on a Credit Card?
If you don’t, any rewards you earn will be instantly erased by steep interest charges.
Aside from this, consider the potential impacts on your overall finances.
Credit limit:Your ability to charge rent to a credit card may depend onyour credit limit.
A high credit utilization ratio could hurt your credit score.
If you want to pay rent with a credit card without any fees, look into theBilt Mastercard.
