Is it possible to pay your rent with a credit card? Here’s everything you should know

This post is updated regularly with the latest information.

Rent or mortgage payments are typically among your largest monthly expenses. Unfortunately, paying these bills without incurring extra fees usually requires a bank account. Because of bank interchange fees, landlords and banks generally face a loss of 2%-3% of the rent or mortgage payment each month if they accept credit cards without a surcharge.

One recent solution is Bilt Rewards and the Bilt Mastercard® (see rates and fees), which enables users to pay rent without transaction fees. What's more, it also provides World Elite Mastercard benefits and has no annual fee.

Beyond this specific card, there are multiple ways to pay your rent or mortgage using a credit card, allowing you to earn a significant amount of points and miles. This guide will explore various methods and highlight when it’s beneficial to utilize a credit card.

Pay your rent with a credit card without incurring fees

A limited number of apartment complexes and landlords accept credit cards through an online platform or their small businesses without extra charges. This should be a key question during your apartment search due to the potential rewards over a year’s lease.

For instance, if your monthly rent is $1,200 and you use a Chase Freedom Unlimited® card, you'll earn 1.5% cash back (equivalent to 1.5 Ultimate Rewards points). After 12 months of payments, you would accumulate $216 cash back or 21,600 Ultimate Rewards points, valued at approximately $443 according to TPG's July 2024 valuations.

Alternatively, you can use the Bilt Mastercard. This card, which has no annual fee, is currently the only option that allows renters to pay their rent with a credit card without incurring any transaction fees (see rates and fees).

Renters can accumulate 1 point for every dollar spent on rent payments, capping at 100,000 points annually. However, you must complete at least five transactions on your card each month to qualify for points. Simply making a rent payment with the card won't suffice (refer to rewards and benefits).

It's important to highlight that the card facilitates rent payments even if your landlord or property management doesn't accept credit cards. Just use the Bilt Mastercard via the Bilt Rewards app to pay your rent, and Bilt will send a check to your landlord each month. You'll earn points while ensuring your landlord is paid — a win-win situation.

With the Bilt Mastercard, you can also gain 3 points for every dollar spent on dining, 2 points for travel expenses, and 1 point for other purchases. This is in addition to earning 1 point per dollar on rent payments.

You can also earn an extra 1,000 points each month from purchases made on the first day. Thanks to Bilt's "Rent Day" promotion, you'll receive double points on non-rent transactions on the first of the month, coinciding with the rent due date for many people.

Bilt points can be redeemed for various options, including transferring them to the following travel partners at a 1:1 exchange rate:

• Aer Lingus AerClub
• Air France-KLM Flying Blue
• Air Canada Aeroplan
• Alaska Airlines Mileage Plan
• Avianca Lifemiles
• British Airways Executive Club
• Cathay Pacific Asia Miles
• Emirates Skywards
• Hilton Honors
• Iberia Plus
• Marriott Bonvoy
• Turkish Miles&Smiles
• United Airlines MileagePlus
• Virgin Atlantic Flying Club/Virgin Points
• IHG Rewards
• World of Hyatt

You might occasionally encounter a landlord or bank that accepts debit card payments without an extra charge. Due to the Durbin Amendment established in 2010, debit card interchange fees have been reduced, making it a more affordable payment method, as landlords incur lower fees compared to credit cards.

Ways to pay rent using a credit card

Certain third-party service providers enable you to pay your rent, mortgage, and nearly any other bill using a variety of credit and debit cards. However, fees can range from 2% to 3% for credit card transactions, while debit card payments usually involve a flat fee.

Here’s a table showing third-party payment providers that accept credit cards along with their associated fees.

Certain providers, such as Venmo, necessitate registration for both landlords and tenants before they can use the service. Plastiq remains the most favored option and offers the lowest fees, often running promotions that reduce costs even further.

However, it's worth noting that the fee for paying rent with a credit card through Plastiq has risen several times in recent years, and Plastiq does not accept American Express cards.

When is it reasonable to incur a fee?

A common scenario to justify paying an extra fee on your rent is when you need to meet a minimum spending requirement to unlock a sign-up bonus — especially for cards that require spending $5,000 or more within a set timeframe. For instance, the British Airways Visa Signature® Card demands $5,000 in spending within the first three months of account opening to access the full 85,000 bonus Avios. This bonus is valued at $1,190 according to TPG's September 2024 assessments. If your fees are lower than this amount (and if you lack other ways to meet the spending requirement), it may be worthwhile to accept these fees.

Alternatively, assess the value of the points or miles you will earn to see if they exceed the fees you'll incur. If the costs associated with using a credit card are higher than the value of the rewards you’ll receive, it’s likely unwise to pay your rent or mortgage with a credit card.

However, if Plastiq runs promotions, or if you can get enough friends and family to register using your promo code (which provides you with fee-free dollars), you can end up saving money.

Using a credit card to pay your mortgage

The same principle applies to paying your monthly mortgage with a credit card. This is typically very difficult or comes with high fees. However, there’s a card that can be advantageous during a promotion or when you have fee-free dollars: the Citi Double Cash® Card (see rates and fees). This card rewards you with 2 ThankYou points per dollar spent — 1 point when you make the purchase and another point when you pay your bill.

If you opt to pay a $2,000 mortgage through Plastiq during a 2% promotional period, you would incur $40 in fees while earning $72 in points. If you’re not on the Plastiq email list for promotional alerts, consider signing up.

Regrettably, there are limited choices for using a credit card to pay your mortgage through Plastiq. American Express and Visa credit cards are not accepted for these transactions. However, Visa debit cards, along with Discover, Diners Club, and Mastercard, can be used.

Important considerations before paying rent or mortgage with a credit card

Beyond ensuring that the rewards you earn exceed your fees, there are other factors to consider when making payments through these services.

Firstly, make sure that these payments do not register as cash advance charges, which do not earn rewards on credit cards and come with high interest rates. The services mentioned above claim these payments won’t show up as cash advances on your credit card statement, but it’s wise to conduct small test transactions first to confirm. To avoid accidental cash advances, request your card issuer to set your cash advance limit to $0 or as low as possible, preventing any unintended cash advances.

Secondly, be aware of the time it may take for these payments to process. If the service sends a physical check to your bank or landlord, you won’t be able to request the payment just a day before it's due. It’s best to allow ample time and keep an eye on the payment until you receive confirmation that it has been received. Plan for at least a full week from when you submit the payment for your landlord or mortgage provider to receive the check.

Most importantly, never charge your rent or mortgage to your credit card simply to cover a payment you can’t afford. The key to benefiting from rewards credit cards is to sidestep interest charges by paying your bills in full and on time.

Final thoughts

Unless you’re among the fortunate few who can pay their rent or mortgage with a credit card without incurring fees, you need to evaluate whether using a third-party payment provider is worthwhile when considering the associated fees. For those looking to earn points on monthly rent payments, the Bilt Mastercard is a sensible choice for many individuals.

If you have a rewards-earning debit card, verify if Venmo payments are eligible for your debit card rewards program and encourage your landlord to accept payments through the app.

Alternatively, as a last option, you can utilize a service that charges a fee when you pay your rent or mortgage with a credit card. Only proceed if it makes financial sense and if you’re accumulating enough rewards to warrant the fee for using this service. Typically, this only becomes advantageous when it helps you secure a valuable sign-up bonus or welcome offer.