Can You Pay Rent With a Credit Card?

It’s entirely possible to pay rent with a credit card, though this method is very nuanced. First, you have to ask your landlord if they’re willing to accept credit cards for rent payments. If you’re approved, the payment service that your landlord uses may add on a processing fee between 2.5% to 2.9%.

Here we’ll weigh the pros and cons of paying rent with a credit card. We’ll also explore other ways to  that may suit your needs.

Key Takeaways

• Landlords must approve your request to pay rent with a credit card.
• Paying with a credit card can help build credit.
• A small selection of commercial cards can be used for rent without fees.

Table of contents:

• Does Paying Rent Build Credit?
• How to Pay Rent With a Credit Card
• Are There Fees for Paying Rent With Your Credit Card?
• Build Your Credit With Credit.com

Does Paying Rent Build Credit?

Paying rent with a debit card, paper check, or checking account will not automatically build credit. In those instances, you must utilize a rent-reporting service to get credit for your payments. 

Credit.com’s ExtraCredit®, Clear Now, and RentReporters are several rent-reporting services that can help you get credit for a fee. Equifax®, Experian® and TransUnion® also offer rental credit programs that may not be as robust as a private rent reporting service.

How to Pay Rent With a Credit Card

Making purchases with a credit card can be an excellent way to earn cash back, mileage, or points-based rewards. Responsibly using a credit card will build credit, which might be why a person would want to use their card for rent payments. Here’s how you can pay rent with a credit card, along with some of the main caveats to this method.

1. Talk With Your Landlord

Ask your landlord if they currently allow (or would consider allowing) credit card rent payments. If you feel strongly about wanting to pay by credit card, it may be a good idea to come prepared with information about how this payment method could benefit your landlord. 

For example, having tenants pay their rent with a credit card allows for more flexibility, increasing the odds that payments are made on time. You may also mention that this will eliminate the concern of checks getting lost or delayed in the mail.

2. Find Out About Fees

It’s important you find out what other fees may be tied to the payment you plan on using. For example, if your landlord accepts your payment using Square Cash or PayPal, you may have to pay a transaction fee. Conversely, if they use an online rent payment platform like RentPayment, there will be a service fee.

The cost of covering payment method charges can essentially raise your monthly rent. Remember to factor these fees into your budget and decide if paying rent with your credit card is financially viable.

3. Make Sure You Pay on Time and in Full

Having your bill set to autopay can help you routinely make payments on time, so long as you manage your spending habits. Make sure that the card you plan to pay rent with has an ample available balance. That way, your rent payment won’t cause you to exceed your credit limit or increase your credit utilization rate too much.

If you pay your rent and your credit card on time, you can profoundly improve your credit. Payment history makes up 35% of your FICO^® credit score. Paying rent with a credit card can also help cardholders earn sign-on bonus rewards for new cards.

4. Consider Using a Rewards Credit Card

It may make even more sense to pay your rent with a rewards credit card, as doing so could help you rack up perks from an expense you’d already be paying anyway. If this is the route you choose, it’s a good idea to shop around and find the credit card that is right for you. 

Reward credit cards have specific eligibility requirements, so it helps to have a full picture of your credit profile before applying for a card. Credit.com offers a free credit score with a Credit Report Card that is updated every 14 days.

5. Other Things to Think About Before Paying Rent With a Credit Card

Lastly, keep any credit card fees you might have in mind before committing to this method. Many rewards credit cards carry an annual fee and cash advance fees when you withdraw funds against your credit limit. It’s also best not to use your rent credit card to make other purchases so you won’t increase your balance too much.

Keep in mind that balances may show up on your credit report even if you pay all your charges off in full every month. This is because issuers report balances to credit bureaus on your statement billing date and not your actual due date. For the best results, aim to pay off any big charges long before that billing date.

Can I Pay Rent With a Credit Card Without Fees?

Many traditional payment services will charge some sort of fee for credit card payments, but there are other ways to circumvent those fees. For example, American Express’ Send & Split feature will let you send payments through services like PayPal and Venmo without racking up fees in the process.

The Bilt Mastercard® credit card lets cardholders earn rewards for paying rent and avoid most fees, making it an excellent rent credit card.

Build Your Credit With Credit.com

Using a credit card for rent is a viable option for some and a massive setback for others. Fortunately, it’s not the only way to build credit. In fact, you may be able to improve your credit by reviewing your credit report and addressing errors.
Credit.com offers a free credit report card to shed light on what is affecting your credit score—see yours today.

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