How to Pay Rent with Credit Card

Posted by Mayank on August 15, 2013 in Personal Finance

Your monthly home rent is likely to be the biggest expense of the month if you live in a rented home or an apartment. Also, it is likely that you do a transfer from your bank account, either with a online transfer facility or dropping/issuing a physical check to the landlord. Did you ever wonder if it is possible to pay rent with credit card. Probably you did and then forgot about it. It is in fact possible to pay rent with credit card.

Why would you pay your rent with a credit card? Here are some of the reasons:

  • Your cash balance is running low and you defer cash and use use credit instead.
  • You want to reach the minimum spend to get bonus signup points of your new credit card.
  • You want to earn 1% or 2% points on your credit card.
  • You want to build or improve your credit history.

There may be more reasons to pay rent by credit card and the ones mentioned above are the common ones and are genuine ones too. Consider this, if your rent is $1800 per month and your credit card offers 2% cash back on all purchases, you’re actually saving $36 per month by paying with credit card. Also, if you acquired a new credit card and need to meet the minimum spend to get the bonus points – paying rent with a credit card will knock off the biggest chunk of the minimum spend requirement.

How to Pay Rent with a Credit Card

While there are a variety of ways to pay rent with credit card, I will discuss the one I used earlier. I used Williampaid to pay my rent with my credit card. Williampaid is not limited to paying your rent with credit card, you can also use the service to pay your rent with cash and bank account.

Williampaid charges 2.95% to pay rent with a credit card and $10 to pay rent with cash. Using bank account to pay for your rent is free. Williampaid works with any landlord – you just need to signup and use your preferred payment method to schedule your payment. It also sends you reminders on any upcoming payments – a great way to avoid penalty on non-payments.

To make the payments, once you signup, you will be asked to your landlord details and enter the day of the month you want to send the payments. Note that the payments are sent via US Postal Mail and the delivery duration is usually 3-5 business days excluding holidays. So, make sure that you schedule (“Send Date“)your payment around a week in advance. There is an optional feature to inform Experian about your payments. This feature will help you build or repair your credit score. However, I never tried it. You also have the option to pay rent by splitting it between 2 credit cards.

The terms of use restrict you from making a payment more than $2,500 in a 24 hour period or more than $5,000 in a month unless you request approval. They also restrict you from using the service to make cash advances or to liquidate gift cards. :)

Bottom Line:  It is pretty easy to set up my rent payment with credit card using Williampaid. I did’t like the 2.95% convenience fee in case of credit cards, so I don’t use it often. Only when I’m hard pressed to meet my minimum spend, I use this option to stack up the bonuses.

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