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In some cases, you can pay rent with a credit card, but it may be more trouble than it’s worth. 

Some landlords accept credit card payments, while others may require you to use a third-party service or online platform to process the transaction. You may earn rewards if you pay your rent with a credit card, but the extra fees and the effect on your credit score may outweigh the benefits. 

Here’s what to consider before paying your rent with a credit card. 

There are some advantages to using a credit card to pay your rent. 

However, there are downsides to putting your rent on plastic:

Deciding if it’s a good idea to put your rent on your credit card depends on the potential fees, your ability to manage your credit card bill, and any potential rewards you could earn on the transaction. 

For one, most landlords only accept direct bank payments or checks. If they do allow card payments, they’ll likely charge a processing fee, which is an average of 1.5%-3.5% of the total transaction.

If your landlord doesn’t accept card payments, you may need to use a third-party platform to process the payment. 

Plastiq, PlacePay, and RentMoola are examples of payment platforms that allow you to pay rent with a credit card for a fee. Plastiq charges a processing fee of up to 2.9%, while PlacePay and RentMoola charge a processing fee of 2.99%. 

Some landlords may accept rent via Venmo or PayPal, which are peer-to-peer payment apps that allow you to pay with a credit card. To use a credit card, Venmo charges a 3% processing fee, while PayPal charges a 2.9% processing fee plus a $0.30 fixed cost. 

The Bilt Mastercard® is a rare card that’s designed for renters, allowing tenants to earn rewards points on their rent payments and avoid paying transaction or processing fees. 

With the Bilt credit card, renters can earn rewards on everyday purchases and earn points on their rent payments. The card offers bonus points on various spending categories, such as dining, groceries, and travel. 

The Bilt app simplifies the process of paying rent on the card. You can choose to have a check sent directly to your landlord or rental agency, or utilize the app’s to pay rent through online portals without incurring any transaction fees. You can also earn rewards when you pay your rent with Venmo and PayPal.

The Bilt card also typically requires good to excellent credit to qualify, which means renters with fair or bad credit may not be able to benefit from the card. 

Paying rent with a credit card can increase your card’s balance. This affects your credit utilization ratio, which compares the amount of credit you use to your total available credit. If your credit utilization ratio becomes too high, it can have a negative impact on your credit score. 

You’ll incur interest charges if you carry a balance on your credit card from paying rent and don’t pay it off in full. High-interest debt can easily accumulate and become difficult to manage, leading to financial strain. Missing payments or making late payments can harm your credit score.

Making on-time credit card payments can help avoid late penalties and potential negative marks on your credit report. 

First, determine if it’s even possible to pay rent with a credit card. Then, figure out if the rewards outweigh the costs. Consider your ability to pay your credit card bill and avoid accumulating high-interest debt. 

Review the fees you’ll have to pay. For example, if your monthly rent is $2,054 (the national average in June 2023) and you’re charged a 2.9% processing fee, you’d pay almost $60 in fees every time you pay your rent with a card. That’s an extra $720 in fees each year. 

Compare these fees with the potential rewards you could earn. Each credit card has its own rewards system, whether in points, travel rewards, dining experiences, or cashback. If the rewards you will earn on your credit card are higher than the fee, it may be worth it. But in many cases, it’s better to focus on earning rewards in other spending categories instead of rent. 

Paying rent with a credit card is typically not a good idea. 

The transaction fees charged by landlords or payment platforms often outweigh potential rewards or benefits. Carrying a balance on your credit card from rent payments can also result in interest charges. Paying rent with a credit card can negatively impact your credit utilization ratio and harm your credit score. 

In most cases, it’s a better idea to explore alternative payment methods to avoid the unnecessary fees and potential financial risks.