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Can You Pay Rent with a Credit Card

Your rent is due today, but you don’t get paid for another week. You don’t want to have that uncomfortable conversation with your landlord explaining why you can’t pay your rent on time. Can you avoid this situation by paying your rent with a credit card? 

Keep reading to find out everything you need to know about paying your rent with a credit card! 

Can You Pay Apartment Rent with a Credit Card?

The answer to whether you can pay rent with a credit card is yes. But there may be additional fees involved. Therefore, it is good to consider the extra costs you may incur before moving forward and paying the rent with a credit card.

Using a credit card to cover your rent allows you to pay it without having the actual cash in your account. Your landlord may not accept credit card payments. If that’s the case, you can use rent payment services to pay with a credit card. While it’s convenient, you will likely have to pay more than if you had just written a check.

Should I Pay My Rent with a Credit Card?

One of the benefits of using a credit card to pay rent is the rewards you get by using it. 

For example, if you get miles or points for each transaction, your rewards may offset some of the cost. However, if you have to pay a fee for the transaction, you will probably walk away with a net loss.

Credit card rewards usually max out at two percent on most transactions. So the average cost for making a rent payment with your credit card is around 2.9 percent. Doing the math, if your rent is $1,000 and your credit card gives you a two percent reward, you will make $20. But you will have to pay out $29 for the fee. This leaves you with a net deficit of nine dollars.

However, say you have a new credit card, and they are offering you a sign-up bonus. The bonus is that they’ll reward you if you spend X dollars within the first few months. Then, you can justify using your credit card. You’ll likely get rewarded with more than the fee it costs to pay rent. 

For example, some credit card companies offer many travel rewards to customers who use their cards. The reward may be more than $1,000, making spending $30 on a fee very worthwhile! 

Ways to Pay Your Rent with a Credit Card

Your landlord may have a virtual property management solution in place that handles rent payments. If that’s the case, you can get in touch with them through your apartment complex’s website. 

It should be easy for you to message them and ask if they have the option to pay rent online. If so, hopefully, you’ll be able to pay using a credit card.

If you can’t pay rent to them directly online, there are other options. 

I’ve outlined some of these options for you below: 

PlacePay

PlacePay is a company that used to be known as RentShare. To use PlacePlay, your landlord needs to accept direct deposits from you.

If you use a debit card, there is a flat fee of $1.95. With a credit card, there will be a 2.99 percent fee. 

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PlacePay is convenient because roommates can split the rent between themselves. Plus, if you don’t want to forget to pay rent, you don’t have to. With PlacePay, you can set up automatic payments as well! 

RentTrack

RentTrack is a service you can use without involving your landlord. Remember, though, that it can get a little spendy using a credit card using platforms like these. You will get charged a 2.9 percent fee if you use your credit card or $6.95 if you make an ACH payment.

Things to Consider Before Using Your Credit Card to Pay Rent

Before taking the plunge and paying with a credit card, there are a few other things to consider. 

Fees: The cost of fees can cancel out any rewards from your credit card. Some services offer ACH payments for free. However, you lose the flexibility to pay your rent if you don’t have the cash in your account.

Interest Payments: Using a credit card allows you to pay your rent if you don’t have cash for it at the moment. Yet, if you don’t pay the credit card in full each month, you’ll, unfortunately, have interest payments. So, keep in mind with this method, your balance will pile up quickly.

Your Credit Score: Using your credit card for your rent increases your credit utilization ratio. This is a crucial factor in your credit score and something you should keep in mind. To keep your credit score high, you must pay off your credit card in full each month. 


Final Thoughts

It would help if you weighed the pros and cons of using a credit card before choosing this option to pay your rent. If you’re in a bind and can’t pay rent on time, then paying with a credit card may be beneficial. Just remember to pay your balance in full before the month ends. That way, you’ll avoid any additional interest charges.

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