Can you pay rent with a credit card?

You can pay rent with a credit card in many instances. Rent or mortgage payments are among the largest monthly expenses most people face, so why not maximize the benefits of what you’re already paying? 

Turning to a credit card can make sense if you want to earn rewards or need financial flexibility. However, it’s important to understand more of the potential advantages and disadvantages that come with it. Keep reading to learn more.

What you’ll learn:

• In some cases, it’s possible to pay rent with a credit card. But it’s a good idea to weigh the pros and cons first.

• Consider whether you can make on-time payments for the credit card bill each month. Missed or late credit card payments can affect your credit and may lead to late fees and higher interest rates. 

• You can weigh potential rewards against costs when deciding whether making a rent payment with a credit card might be useful to you.

• If paying your rent with a credit card causes you to come close to maxing out your available credit, this could hurt your credit scores.

Yes—it’s possible to make your monthly rent payment using a credit card. That’s if your card’s credit limit can cover it and your landlord or property management company allows it. But paying rent with a credit card may come with additional costs like processing or transaction fees.

If your landlord or property management company accepts rent payments via credit cards, you can make your monthly payment to them in person or online—just like you would with a debit card, except rather than the money coming out of your bank account, it shows up on your credit card statement.

There are also third-party services that facilitate paying rent with a credit card. Typically, though, a processing fee will be added to your transaction.

A cash advance lets you borrow funds against your credit card’s line of credit. Cash advances can come with fees and higher interest rates than typical credit card purchases. 

Be sure to check with your credit card issuer to understand what transactions might be considered cash advances.

There are both potential benefits and drawbacks to consider before deciding whether paying your rent with a credit card is the right choice for you:

Potential benefits of using a credit card to pay for rent include: 

• Building credit: Using your card responsibly over time can help you build a credit history and improve your credit scores.

• Accessing digital tools: You may be able to take advantage of your credit card’s digital benefits. For example, Capital One offers Bill Pay, which can help you pay your bills on time. 

• Earning rewards: Depending on your card, you may be able to earn rewards miles or cash back when you pay your rent with a credit card.

Using a credit card to pay rent means you’re creating another bill to pay. So make sure you understand the terms of the credit card and that you can pay the bill on time to avoid credit card debt. Other potential drawbacks of using a credit card to pay rent include:

• Extra costs if you don’t pay off your balance: Depending on your credit card’s interest rate, you could spend more over the course of your lease paying with a credit card than if you used a debit card, paper check, direct deposit or an ACH transfer to send money directly from your bank account.

• Potential for third-party merchant fees: Some landlords may accept credit card payments from third-party services, which can incur additional fees. These fees can vary widely, and they might negate any rewards or benefits you gain from using your credit card. Always review the payment method to understand the total cost before proceeding.

If your credit card activity is reported to the credit bureaus, paying rent with your credit card could help you build credit history and improve your credit scores—as long as you use your card responsibly.

However, late or missed payments or a high credit utilization ratio may negatively impact your credit scores. To help protect your credit scores, the Consumer Financial Protection Bureau (CFPB) recommends making payments on time, paying your balance in full and keeping your credit utilization ratio under 30%.

Paying your rent with a credit card might be possible if your landlord or property management company allows it. It can be a helpful option for those looking to earn cash back or rewards, or temporarily ease a financial burden. But you may want to weigh the pros and cons first.

Looking for the right credit card for expenses outside of your rent payments? Compare credit card options from Capital One to find the right card for you. The best part? Before applying, you can see if you’re pre-approved without any impact on your credit scores.