Can I Pay My Rent with a Credit Card? (2024)

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Credit cards are a secure and easy way to make all kinds of purchases, from buying a gadget online to dining out on a Friday night.

How to pay rent with a credit card

In many cases you might not be allowed to pay your rent with a credit card. Family-run rentals, individual landlords or smaller property management companies might not give you the option of paying this way. That's largely due to hefty merchant processing fees and more time to process the payment on their end — which eats into their profits.Larger property management companies and groups, on the other hand, might accept credit cards as a form of payment. If this is the case, be sure to check if there are any credit card processing fees that might get passed over to you. These can be anything from 1.5% to 3.5% of your monthly rent.

A few third-party platforms let tenants pay their rent with a credit card, but there’s a good chance you’ll be hit with extra fees. ClickPay, RentPayment and Zego are a few platforms, but your landlord or property management will need to create an account first.

‌PayPal and Venmo also allow you to pay rent as long as your landlord agrees to it — and you’ll likely have to pay a fee that can be as high as 2% to 3%.

Paying rent with a credit card pros and cons

Let's walk through the potential perks and downsides of paying rent with a credit card.

Pros

Staying on top of your credit card payments can help build your credit score.
Paying rent with your credit card is a convenient way to pay rent. You won't have to worry about a check getting lost in the mail or having to trek to your property management office to drop off payment. Plus, you don't have to mail the check a week out to ensure payment arrives on time.
Credit cards are a secure way to pay rent. In case of fraud, the liability on credit cards is capped at $50.
As housing is one of your largest expenses, you can accumulate rewards on your credit card more quickly than if you pay with a debit card or by check.

Cons

Depending on the card or payment platform, you might be on the hook for an additional 1.5% or 2.5% of the transaction fees. This can add up quickly. For instance, paying a 2.5% transaction fee on a $2,500 rental is $62.50 a month — that’s $750 per year.
A significant, ongoing purchase on your credit card can increase your credit utilization, which means less of a credit limit toward other purchases. Higher credit usage can negatively impact your credit score.
When you put a large purchase on your card, like rent, ideally you'll want to have the funds already sitting in your savings account, then pay your balance in full each month. Otherwise, carrying a balance on your card means you'll pay more on rent because of the interest fees.

When should you pay your rent with a credit card?

There are some circ*mstances when it can make sense to pay your rent with a credit card. This could be the case if:

You can pay off the balance each month. Paying off the card balance each month means you won’t pay any interest. Plus, you can enjoy any rewards that come with the credit cards.
There is a late payment fee. Some landlords charge a late fee if you send your payment late. When you drop a check in the mail or set up bill pay through your checking account, there's a chance the check might arrive after the first of the month. In that case, it might be a safer bet to pay with a credit card.
You can shave off transaction fees. If there's a credit card that offers no or low transaction fees or the property owner doesn’t charge them to you, then you can enjoy the perks of paying rent with a card without paying the additional costs.

Frequently asked questions (FAQs)

What are the fees involved In paying rent with credit cards?

You will typically pay transaction fees when you use a credit card to pay your rent. These usually are a percentage of the amount charged. Depending on the card or payment platform, you might also need to pay a flat transaction fee. For example, if it's a 2.5% flat transaction fee, and your rent is $2,500, you're looking at $62.50 in transaction fees each month.

Is it better to pay bills with a credit or debit card?

Using a credit card is more secure than paying your rent with a debit card, and you can also earn credit card rewards points. On the other hand, paying with a debit card means you won't need to pay off a balance on your credit or interest. However, landlords typically charge you a transaction fee for using your debit card.

Is paying rent with a credit card bad for your credit score?

Paying rent with your credit card can hurt your credit in some ways, but it can help in others. Using a credit card to pay rent can hurt your credit by increasing your credit utilization ratio. Should you fall behind on your payments and slip into default or delinquency, this can also lower your score.

Does paying rent with a credit card count as a cash advance?

Cards such as Bilt are designed for you to use a credit card to pay for your rent. In turn, they're treated as a standard purchase but with transaction fees. You can take out a cash advance to pay your rent, but note that cash advances come with heftier fees — these can be 3% or 5% of the amount of the request. So, if you are requesting $2,500, it might cost you anywhere from $75 to $125.

This story was written by NJ Personal Finance, a partner of NJ.com. The information presented here is created independently from the NJ.com editorial staff, and purchases made through links in this article may result in NJ.com earning a commission.