A couple of days ago, I reflected on a question asked by one of our readers: Can you pay the rent with a credit card?
The answer is quite simple because nowadays, it is possible to pay the rent of your apartment using this mechanism.
It guarantees a series of advantages, which we will analyze below. We will also review how to pay and consider when making the transaction.
Five ways to pay the rent with a credit card
Here are five different must-have ways to pay rent with your credit card. They will come in handy in California or Texas, where rentals have increased significantly.
1. Plastiq
Plastiq is an effective payment system that facilitates any transaction. Thanks to it, you will pay the rent of a property, even if the landlord does not have a bank account.
It is important to know that Plastiq charges up to 2.85% each time you make a transaction. The best thing is that the procedure can be done manually or through automatic programming.
After that, Plastiq representatives will deliver the money to the beneficiary by check or electronic payment.
2. Paypal
Paypal transactions have been one of the most profitable businesses worldwide. It has also been used to pay rent and ensure trust and transparency.
If the lessor has registered a credit card to his profile on this platform, he will make any money movement online without any limit.
3. Place Pay
Can I use my credit card to pay the rent through Place Pay? The answer is a resounding “yes.” The issue is that landlords must approve any deposits directly.
If you share an apartment with other people, this platform is perfect. It allows each tenant to split the total amount and know how much money they are paying.
But it also allows them to choose their payment method. For these reasons, Place Pay has become a good option for carrying out this type of transaction.
4. RadPad
If you haven’t heard of RadPad, start discovering its benefits. The first is that it allows you to pay your rent using a credit card.
But to use the card through this platform, you will have to pay a 2.99% fee. In recent years, it has gained a positive reputation for its benefits to all its users.
5. Rent Track
With the help of this website, paying your rent will be much easier. The interesting thing is that it does not require the intervention of the property owner.
You only have to make the respective deposit, and the company will pay the landlord with a check. If you use a credit card, Rent Track will take a 2.95% commission. But if you opt for ACH payments, they will charge a fee of US$6.95.
How to pay my rent using credit cards?
It is important to know how to use your credit card to pay your rent. To understand how to do it, pay attention to the following procedure:
- Choose the card: Choose a card that guarantees an acceptable sign-up bonus. You can use Capital One or Reddit because they offer excellent benefits when executing any transaction. But Discover Bank’s card guarantees an easy sign-up and excellent support.
- Choose the right payment option: Choose the third-party payment option that fits your needs or requirements.
- Inform the landlord of the procedure: Be sure to inform the landlord of your intention to use credit cards to make rental payments.
- Pay the rent: Make the payment days before the due date. The landlord may receive a check for the amount owing. Do the procedure manually or program it automatically.
- Pay the card: The last step is to pay the corresponding amount to your credit card. It is important to do it every month to avoid losing the multiple benefits and accumulating dollars in debt.
What elements to consider before paying your rent with a credit card?
Although paying the rent with a credit card ensures many advantages, it is not always right. To find out if it is a good option, take a look at these elements:
1. The rate
While paying by credit card offers some rewards, operations could diminish any profits. It is important to consider this factor before choosing to pay your rent.
2. Interest
Using your credit card for rent payments can be a quick solution, especially when getting the cash on time.
If you don’t pay your debt to the bank on time, the interest rates on the current amount could be truly disastrous.
3. Credit Score
Using your credit card frequently to pay rent could increase your credit score, as it also increases your credit card usage rate.
For banking purposes, it is important to keep these levels low. Experts recommend that it should be around 30%. But this figure will grow if you use a lot of money for rent, for example.
Is it wise to use this mechanism to pay the rent?
It is a good alternative as long as it is inconvenient to write checks every month. Credit cards are also useful if you are getting any transaction rewards.
It is not advisable to use this method when the bank has imposed a fairly low credit limit or when income is not constant. These factors will hurt your credit score, especially if payments are not timely.
But who shouldn’t use a credit card to pay rent?
If you have any drawbacks, you shouldn’t use a credit card to pay your next rent.
- When you don’t have enough money to make the payments.
- If you don’t want to get sign-up bonuses through a rewards card.
- If you have had problems with credit card payments.
- When budgeting is a problem every month.
Now that you have all the information, you can decide to pay your rent with a credit card and enjoy the many benefits.