How to Pay Rent With Credit Card Following Very Simple Steps
– How to Pay Rent With Credit Card –
How to Pay Rent With Credit Card: You can pay with a credit card for pretty much anything these days: your power bill, your car payment, airfare for your next international holiday. And yes, you can also use a Credit Card to pay your Rent.
Paying your rent with a credit card has its advantages. For example, you don’t need to go through the trouble of writing a paper check and waiting to cash it out.
Moreover, it offers versatility to you. If your rent is due before payday, you can cover the costs with your card and payback when your paycheck arrives, all while avoiding an uncomfortable discussion over late fees with your landlord.
The pros and cons of using your credit card for rent
- You could earn rewards points
- Payment convenience – you can pay over the phone or online with the click of a button
- May assist in meeting your minimum spend to earn bonus rewards points, if applicable – read the terms and conditions of your credit card provider to see if they offer a bonus point system and if rent is an eligible purchase
- Could help you build your credit score if you make payments on time
- Likely to incur fees and surcharges that could outweigh the benefits you may receive from redeeming the points
- Putting payments on your card, which you may not have capacity to pay off in time, could risk leading to debt
- Could lower your credit score if you don’t pay your card balance on time, potentially resulting in an increase in interest rate
How Do You Pay Rent With a Credit Card?
For certain lucky renters, their landlords or property managers offer an online rent payment method with no fees. Those who aren’t so lucky, however, will need a third party to pay their rent with credit card.
Here are five options, along with their fees.
|Company||Credit Card Fee||Payment Sent Via||Cards Accepted||Perks|
|Plastiq||2.5%||Check, wire transfer/ACH, direct deposit||Visa, Mastercard, American Express, Discover, JCB, Diners Club||Occasional discounts for subscribers, guaranteed on-time delivery|
|RadPad||2.99%||Check||Visa, Mastercard, American Express, Discover, Apple Pay||100% on-time guarantee, ability to split with friends|
|Place (formerly RentShare)||2.99%||Direct deposit||Visa, Mastercard, American Express, Discover||Reminders about when to pay or if your roommates haven’t paid|
|RentMoola||2.99%||Direct deposit||Visa, Mastercard, American Express||“MoolaPerks” (discounts on travel, shopping, etc.) to registered users|
|Venmo||3%||Venmo||Visa, Mastercard, American Express, Discover|
Since Plastiq has the lowest credit card fees, it’s probably your best bet. Sign up for its email list, and you may even find out about promotions that further reduce the fees you’ll owe.
Alternatively, if you have a rewards-earning debit card, you should consider that, too. Some of the sites offer lower fees for debit transactions, and Venmo doesn’t charge any debit card fees at all.
Note that some vendors may process credit card rent payments as cash advances — which is not what you want. Read the fine print to ensure your transactions register as purchases; that way, they’ll earn rewards and won’t start accruing interest immediately.
How to pay through third-party services
An alternative to paying your landlord directly is to use a company that acts as an intermediary. The general process is simple:
- Sign up with the company.
- Identify your landlord.
- Enter your rent amount and due date.
- The company charges your card and sends your landlord the money in the form of a paper check or electronic transfer.
- You receive a bill from your credit card company and can send any amount that is at least the minimum payment.
You should have no trouble paying any landlord this way if the third party sends your rent with a paper check. It’s the same as if it were coming straight from your own checkbook.
However, if the company sends payments electronically, your landlord would need to register for an account so the money can be deposited. But charging rent with a third-party company is becoming popular. Review a variety of third-party companies before deciding on one, paying close attention to the fee structure and whatever unique benefits they may have.
|Third-party service||Transaction fee||Benefits/Perks|
|Plastiq||2.5%||Up to 2% cashback on transactions.|
|RentMoola||2.99%||Earn “MoolaPerks” for deals on travel, shopping, home service providers, etc.|
|SparkRental||2.99%||Designed for landlords with a more challenging tenant base.|
|RentPayment||2.95%||Can pay via the app, by replying to a text or by phone.|
|RadPad||2.99%||For landlords who prefer paper checks.|
|Cozy||2.75%||Can add low-cost renter’s insurance to the payment.|
Steps to Follow When Trying to Pay your Rent with a Credit Card
1. Ask if your landlord accepts credit card payments. Some landlords, especially those who are part of major rental companies, accept credit card payments with little to no hassle. However, many small and independent landlords do not because of the additional fees involved.
2. Inquire about additional fees associated with credit card payments. Almost all landlords charge a transaction fee to make a payment using a credit card. In addition, some landlords charge a variety of small, hidden fees that you may not notice until you get your billing statement.
3. Create an online payment account if necessary. In order to make payments using a credit card, you may need to create an online payment account on your landlord’s official tenant management website. To do so, visit the site and look for a button labeled “Setup Account” or something similar. Then, follow the on-screen instructions to create your account.
4. Pay online through your landlord’s tenant management website. If you want to pay your rent online, visit your landlord’s tenant management website, login to your account, and search for a button labeled “Pay My Bill” or something similar. Click on the button, then follow the on-screen instructions to pay your rent.
5. Call your landlord if you want to pay over the phone. Most major landlords let tenants pay their rent by calling an official customer service hotline. If your landlord uses an automated system, navigate to a payment or billing section and enter your personal and credit card information. If you end up talking to a customer service operator, ask them to walk you through the payment process.
6. Pay in person if your landlord allows you to.
To decide if using your credit card to pay rent is worth it for you, it all comes down to what rewards you can get from putting that spend on your credit card and how that aligns with what you want, and the total fees involved in the payment process.
Consider these variables and make sure to read the terms and conditions of your credit card redemption program along with those of the payment platform involved.
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