How To Pay Rent with A Credit Card
Rent is high. We can probably note that obvious statement again. A recent report stated how rent in NYC hit a new milestone at $5,000 per month.
This is certainly concerning news and is something to think about over the long term. It is essential to think about how the cost of living is progressing and how one should manage their finances to account for increased costs over the near term and long term.
In these situations, it is important to look at the various options that you have to pay your rent. Of course, you want to make it to where you can handle your rent with the regular ACH payments or withdrawal from your bank account.
But what about times when you do not have the money on hand for whatever reason? Maybe you had unexpected expenses and don’t have the cash on in the bank account.
Renting using a credit card has numerous benefits. You may save the time and effort of writing and cashing a check. If your rent is due before your next paycheck, you may use a credit card to cover the cost and pay it off in installments. For a charge, rent processing providers accept credit card payments.
It is pretty enticing to be able to charge the cost of your monthly rent to a credit card rather than having to send a check-in place. And if you’re a renter who sends in your monthly bill by online banking, you’ve probably considered how you might speed up the accumulation of cash back, points, or mileage by using your credit card instead.
Let us take a look!
Pro Tip: If you are looking for apartments, ask your apartment consultant or leasing agent if they accept credit cards as a payment option. If they do, are there extra charges involved?
Why Should You Consider Using a Credit Card to Pay Your Rent Instead of Cash?
First, let’s go through some of the reasons why using a credit card to pay your rent can be in your best interest if you use it responsibly.
- Accumulate Points for Rewards
Paying your rent using a credit card instead of cash transactions might earn you reward points, which can then be used for discounts on future purchases or reservations made with well-known companies.
One such network is called Magicbricks, which allows users to pay their rent using credit cards while also allowing them to earn reward points and exclusive discounts. For those who are not aware of Magicbricks, this is a platform that is present in India. It is important to note because it shows you that this option is becoming more prevalent across the world.
- Grace Period for Free Use of Credit
If you pay your rent using a credit card, you will get a certain amount of more days of the interest-free period. Therefore, you won’t be required to make any interest payments on your credit card balance if you pay it off within the allotted timeframe.
- Payments that are made on time
Let’s say that the first of the month is when your rent is due, but your paycheck doesn’t arrive until the fifth or sixth of the month. If this happens to you, paying your rent using a credit card will save you the humiliation of having to convince your landlord that you are not late with your payment. To avoid paying interest on your rent, you may also pay the credit card account during the grace period , free of charge.
- Raise your FICO score by doing the following
If your credit score is lower (below 750), you may raise it (to 750 or above) by often completing substantial purchases. This will help enhance your credit standing (like rent). Before determining whether or not an individual is qualified for a loan, financial institutions like banks and non-bank financial companies (NBFCs) look at that person’s credit score. However, it is recommended that you keep your credit usage ratio below 30 percent since anything more than that might negatively influence your credit score.
- Basic Requirements
All of the websites that enable you to pay rent with a credit card provide cutting-edge technology to guarantee that paying rent is as simple as possible. In addition, you will only need to enter your landlord’s information once, and then (provided that your credit card issuer permits it), you will be able to automate the transaction for the remainder of the year.
- Stay under the allotted spending limit for the year
The problem of exceeding one’s credit card’s yearly spending limit plagues many cardholders who use credit cards. However, if you pay each month’s rent using a credit card, you will easily be able to achieve the yearly spending limit that you have set for yourself.
Options for Credit Card Rent Payments
There are more credit card alternatives for paying rent than mortgages. This will need some more steps.
Plastiq lets you pay rent via credit card. Plastiq charges a fixed fee of 2.5 percent on each transaction. Use Visa, Mastercard, American Express, etc. After your transaction, your landlord gets paid by check or ACH. Sign up for Plastiq here.
RadPad allowed credit card rent payments in the past. It does not anymore. It worked like this. Your landlord didn’t need to sign for payment,. Apple Pay, Visa, Mastercard, Amex, and Discover are accepted. Debit cards and ACH transfers don’t earn points. It does NOT have this option anymore!
RentMoola charges 2.99%-3.99% for credit card rent payments. MoolaPerks give savings on travel and shopping in addition to credit card rewards.
Your landlord may accept PayPal if they have one. You’re at ease because Paypal accepts credit cards.
The BILT credit card can be a game changer for you. Individuals say that it does a fantastic job of helping you to make your rent payment. It can be helpful for those who want to pay rent to landlords who don’t accept credit cards. The firm can mail physical checks out to the landlords to solve any hassles.
Users are pleased with this option and usually tell their friends about it because it is a great experience overall. People really love the transfer partners that are associated with this card and are highly effusive about the rewards and benefits of going with this option.
Also: BILT has made things a little easier. They have gone ahead and made it to where you can pay rent directly through your landlord’s online payment platform without having to suffer from excessive fees with their BILT Rent Account.
This way, you can make sure to
It works like this, BILT will generate a specific routing and account number that you would utilize in the landlord payment platform. When those routing and account numbers are processed, then BILT will place are charge your BILT Mastercard for the equivalent.
That way, you earn points on rent without paying the processing fees normally associated with using a credit card in an online payment portal!
But it is a fantastic idea to go ahead and call and talk to them if you have any questions or concerns.
The Step-by-Step Guide to Using a Credit Card to Pay Rent
Let’s look at the proper technique to make a rent payment using a credit card now that we’ve discussed the numerous payment methods that may be used and the cards that should be considered. The following is a list of the steps that you should follow:
- Choose your card – Choose a rewards card that provides a generous welcome bonus for new cardholders.
- Select your payment option – Find the third-party payment system that works best for you by consulting the possibilities provided in the list above of payment methods.
- Get in touch with your landlord — If necessary, get in touch with your landlord and let them know about your intentions.
- Use your third-party account to pay your rent a few weeks before your payment is due. This is particularly important if you selected the “pay by check” option when setting up your rent payment. You may be able to set up automatic payments, but this will depend on the company you choose.
- Pay off your card – It is of the utmost significance that you pay off your credit card balance at the end of every month! If you do not comply with this requirement, you risk losing potential advantages and incurring additional financial obligations that might total several thousand dollars.
Use Your Credit Card To Pay Rent If Needed
If you find that you can be forgetful in making payments on your credit card or expect to have potential issues with your job in the future, it is necessary to avoid this route altogether.
You should never use a credit card to pay your rent, until you have everything sorted out quite well. It might be beneficial to earn incentives if you intend to pay off the debt in full regularly.
Responsibility is critical when it comes to anything involving debt. Always use debt smartly.
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