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Paying rent with a credit card is absolutely possible, and charging your rent to a credit card can even offer certain perks.
For one, it eliminates the need for writing checks and waiting for them to clear. Secondly, it can be a great way to quickly rack up points on credit cards that offer rewards.
It also offers flexibility; if your rent is due before you get paid, using your credit card can give you a buffer until your paycheck arrives, helping you avoid late fees and uncomfortable conversations with your landlord.
But be aware, paying rent with a credit card may also come with an additional charge, so before you do, check if the benefits and convenience outweighs any extra fees. However, some credit cards and services might help you avoid fees and some credit cards may have rewards that make up for the fees when using them to pay rent. (See below.)
How to pay rent using a credit card
There are several ways renters can pay online, with or without their landlordâs participation.
Kasheesh
Kasheesh is a payment service that lets you split your rent payment across multiple cardsâincluding credit cards, debit cards, and prepaid gift cards; or any combination of the three.
It works by letting you link the cards you want to use and then generating a digital Kasheesh debit card that acts as a stand-in for the combination of the cards youâve selected; charging exactly how much you choose to each of your cards. You can split a payment across up to five cards, but you can also choose to just use one underlying card.
This gives you ultimate flexibility when paying rent with credit cards, as it allows you to pay at least part of your rent with any credit card regardless of the card's available credit limit.
For example: you could charge half of your rent to a credit card with a smaller limit, and the remaining half to another credit card or your debit card. This helps you maximize rewards on any card.
Another big perk is that Kasheesh can help you avoid the higher credit card âconvenience feeâ that landlords and payment platforms often charge, as it essentially turns your credit card(s) into a digital debit cardâand debit cards often incur a lower fee.
Learn more about how to pay rent with multiple credit cards.
Paying rent with Kasheesh â Pros and Cons:
Pros:
⢠â Pay rent with any credit card to maximize rewards
⢠â Split your rent across up to five cards.
⢠â Works with credit, debit, and even prepaid gift cards.â
⢠â No credit checks or rejections.
⢠â No landlord participationâyour landlord won't even know!
Cons:
⢠â Won't work if your landlord doesn't accept card payments.
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Bilt World Elite MastercardÂŽ Credit Card
The Bilt World Elite MastercardÂŽ offers no annual fee and rewards when paying rent with no processing fees, it does however require landlord participation to take advantage of all features. If your landlord doesnât participate in the Bilt Alliance, you can still earn rewards by paying rent via the Bilt app. And if your landlord doesnât take card payments, Bilt will send them a check. To qualify for most rewards, you'll need to make at least five purchases per billing cycle.
A downside is that Bilt will perform a hard credit check, which affects your credit score, and that those who would benefit the most may not qualify: the recommended credit score to apply for this card is good to excellent (670-850).
Paying rent with Bilt credit card â Pros and Cons:
Pros:
⢠â Earn rewards
⢠â No fees
Cons:
⢠â Performs a credit check (will affect credit score)
⢠â You have to sign up for a new credit card â closing it in the future may impact your credit score.
⢠â Requires Good to Excellent credit (670-850)
⢠â Requires some form of landlord involvement
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Plastiq
Plastiq lets you pay rent with a credit card without requiring your landlord to sign up, as the service facilitates one-time or recurring payments for bills such as rent, mortgage, utilities, homeowners association fees, and other expenses. You add a debit or credit card to your Plastiq account and charge it in the amount of the bill, and then Plastiq pays the company on your behalf via a method that the vendor accepts: ACH, wire transfer or an old-fashioned paper check.
Plastic charges a fee of 2.9% for every credit or debit card transaction. You can set up either manual or automatic payments, and Plastiq sends a check or an electronic payment to your landlord.
Paying rent with Plastiq â Pros and Cons:
Pros:
⢠â Works if your landlord doesn't accept card payments
⢠â No landlord participation required
⢠â Works for mortgage payments
Cons:
⢠â High 2.9% processing fee
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PlacePay
PlacePay (Previously known as RentShare) requires your landlord to accept direct deposit. A 2.99% fee applies for credit card payments, while ACH transfers incur a $1.95 flat fee. Roommates can split rent and choose their preferred payment method, with the option to automate or manually manage payments through an app for iPhone and Android.
Paying rent with PlacePay â Pros and Cons:
Pros:
⢠â Optimized for splitting rent between roommates.
Cons:
⢠â High 2.99% processing fee
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Things to think about before using a credit card for rent
While paying rent with a credit card offers convenience and benefits, it can also come with some setbacks if youâre not using it wisely. Be sure to consider these points first:
Interest Costs
Putting rent on a credit card can be helpful if you need cash for other things or can't cover rent immediately due to having too little funds in your checking account. But if you donât pay off the balance in full each month, interest charges will build up fast. Combine that with the processing fee, and using a credit card could significantly increase your overall expenses.
When paying rent with one or multiple credit cards, make sure that you have a plan for how to pay off the balance over the next monthâor at the very least pay it off as quickly as possible.
Processing Fees
Many rent payment services highlight the potential to earn rewards when paying rent with a credit card, but the fees involved may cancel out any benefits. For example, if your rent is $1,000 and the processing fee is 2%, you're looking at an extra $20 every month.Â
Credit cards have varying reward rates that often donât cover the cost of the fee. However, a noteworthy upside is that rent payments can help you meet the spending requirement for a valuable sign-up bonus on certain cards.
Impact on Credit Score
Charging rent to your credit card can also affect your credit score by increasing your credit utilization ratio. Since credit utilization plays a big role in your credit score, itâs generally advised to keep it low, ideally under 30%. Charging large amounts like rent can push that ratio up temporarily.
Credit utilization ratio affects your credit score in two ways: the total amount of debt you're carrying in ratio to your total available credit (across all cards), as well as the credit utilization ratio on each individual card.Â
For instance, if your total credit limit is $10,000 and your total balance across cards is $5,000, your total utilization would be 50%. But if your utilization on one of those credit cards is 90%, or if you were to max out a card, it will still negatively affect your credit score.
A clever way to avoid maxing out a card is to spread out your rent payment across multiple cards, by utilizing a service like Kasheesh.
Struggling to pay rent? Also consider:
⢠What to do if you canât pay rent on time
⢠Can't pay your taxes? Here's what to do
⢠How to pay off your medical bills: 6 options
Is Paying Rent With a Credit Card Right for You?
For those who need flexibility or want to skip writing checks, using a credit card for rent might be a good solutionâespecially if you can pay off the full balance monthly and earn rewards to offset the fees. However, if you have an uncertain income, putting rent on a credit card could be risky. It may negatively affect your budget if you donât pay it off in a timely manner. Weigh the pros and cons and make the decision that works best for your financial situation.
If you do decide to pay rent using a credit card, aim to use one with the lowest possible interest rate, and consider requesting a higher credit limit from your provider. Also, make sure to pay off the balance in full each month, or at least pay as much as you can.
FAQ
Which is the best app for rent payment?
It depends on your specific needs and situation: Kasheesh lets you split your rent across multiple cards, giving ultimate flexibility. Bilt offers rent payments without fees and earning rewards if you sign up for their credit card, but requires a good credit score. Plastiq might be best if your landlord doesnât accept card payments.
Is it better to pay bills with credit or debit?
Credit is often better for bills due to rewards, fraud protection, and credit-building--as long as you use it responsibly. Debit on the other hand helps avoid debt and interest.
Should you pay your rent on a credit card to get points?
Only if the rewards outweigh processing fees and you're able to pay off the balance in full each month.
Can I pay rent with Klarna or other Buy Now Pay Later apps?
No, Klarna does not let you pay your rent with their service. If you want to split your rent into more manageble payments, consider better alternatives like Kasheesh or Flex Pay.
Are there any downsides to paying rent with a credit card?
Potential processing fees, potential interest costs (if cards arenât paid off in full every month), and possible negative effects on your credit score if you max out a card.
What is a typical credit card transaction fee?
The typical fee for paying rent with a credit card is around 2% to 3%.
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Want to pay rent with multiple cards?
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