Best Credit Card For Paying Rent
April 2024
Paying rent with a credit card may seem like an unusual choice, but it can offer several benefits to renters who are looking to maximize their rewards and earn cash back or other perks
SuperMoney may receive compensation from some or all of the companies featured, and the order of results are influenced by advertising bids, with exception for mortgage and home lending related products. Learn more
Rent is one of the biggest monthly expenses for many people, and most landlords allow you to pay your rent with a credit card (often for a fee). By paying your rent with a credit card, you can earn rewards and build credit, if you make regular and on-time payments. Here is our list of the best credit cards for paying rent every month:
Why pay rent with a credit card?
There are several reasons why you might consider paying your rent with a credit card:
- Earn rewards: Many credit cards offer rewards programs that allow you to earn cash back, points, or miles for every dollar you spend. By paying your rent with a credit card, you can earn rewards on a large expense that you're already paying each month.
- Meet spending requirements: Some credit cards offer sign-up bonuses or other rewards that require you to spend a certain amount of money within a specific timeframe. If you're trying to meet these spending requirements, paying your rent with a credit card can help you reach the necessary spending threshold more quickly.
- Build credit: Consistently paying your rent with a credit card and making on-time payments can help you build credit over time. By using your credit card responsibly and paying off your balance in full each month, you can demonstrate to lenders that you're a responsible borrower.
- Convenience: Paying your rent with a credit card can also be convenient, especially if you're used to paying bills online. Many property management companies and landlords now offer online rent payment options that allow you to pay your rent with a credit card or other electronic payment method.
Factors to consider when choosing a credit card for rent payments
If you're considering paying your rent with a credit card, here are some factors to keep in mind when choosing the right card:
- Rewards program: Look for a credit card with a rewards program that offers cash back or points for every dollar you spend. Some credit cards offer higher rewards rates for specific categories, such as groceries or gas, so make sure to choose a card that fits your spending habits.
- Annual fee: Consider the annual fee of the credit card, as well as any other fees that may be associated with the card, such as foreign transaction fees or balance transfer fees. If you're only using the card to pay your rent, make sure the rewards you'll earn outweigh the annual fee and any other costs.
- Interest rate: If you plan to carry a balance on your credit card, pay attention to the interest rate. Look for a card with a low-interest rate, or consider using a balance transfer offer to move your balance to a card with a lower rate.
- Acceptance: Check if your landlord or property management company accepts credit card payments, and if there are any fees associated with using a credit card to pay rent. Some landlords may charge a convenience fee or processing fee for credit card payments, which could negate any rewards or cash back you earn.
- Credit score: Some credit cards require a higher credit score to qualify, so make sure to check the requirements before applying. Applying for too many credit cards at once can also negatively impact your credit score.
FAQ
Can I pay my rent with any credit card?
Not all landlords or property management companies accept credit card payments, so it's important to check with your landlord first to see if it's an option. Additionally, some credit cards may not be accepted by your landlord's payment processing system, so it's important to choose a credit card that is widely accepted.
Will I be charged a fee for paying rent with a credit card?
Some landlords or property management companies may charge a convenience fee for paying rent with a credit card, typically around 2-3% of the total payment. Additionally, if you don't pay off your credit card balance in full each month, you could be charged interest on the balance, which could end up costing more than any rewards earned.
Will paying rent with a credit card help my credit score?
Paying rent with a credit card can help you build credit if your landlord reports rent payments to credit bureaus. However, not all landlords report rent payments, so it's important to check with your landlord to see if they report to credit bureaus. Additionally, making timely payments and keeping your credit utilization low can help improve your credit score over time.
Bottom line
Paying your rent with a credit card can be a good way to earn rewards, meet spending requirements, build credit, and enjoy the convenience of online payments. However, it's important to choose the right credit card for your needs, and to be aware of any potential fees or interest charges. Before deciding to pay your rent with a credit card, consider the pros and cons, and make sure you can pay off your balance in full each month to avoid accumulating debt. By choosing the right credit card and using it responsibly, you can make paying your rent a more rewarding experience.
About the Author
SuperMoney
SuperMoney is the most comprehensive financial services comparison site around. We have published hundreds of personal finance articles and provide detailed reviews on thousands of financial products and services. Our unbiased advice and free comparison tools help consumers make smart financial decisions based on hard data, not marketing gimmicks.