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Hey there, fellow mortgage-jugglers! Ever wondered if you could pay your mortgage with a credit card? Well, the answer is a qualified yes, but there are some important things to know before you swipe away
Let’s dive into the nitty-gritty:
The Short Answer:
Technically, you can’t directly pay your mortgage with a credit card However, there are workarounds, like using a third-party service like Plastiq or converting gift cards into money orders.
The Long Answer:
Why Can’t I Pay Directly?
Mortgage lenders typically don’t accept credit cards because of the transaction fees involved. They also don’t want you to replace one debt with another.
The Workarounds:
1. Plastiq:
This service lets you pay your mortgage with a credit card for a 2.9% fee. It’s a good option if you’re chasing a lucrative credit card bonus.
2. Gift Cards & Money Orders:
Buy pin-enabled Visa gift cards with your rewards card, then use them to purchase money orders for your mortgage payment. This is a more complex process and may not work everywhere.
Pros & Cons:
Pros:
- Earn credit card rewards
- Avoid late payments (by “delaying” the due date with a credit card)
- Maximize credit card benefits
Cons:
- Workarounds are needed
- Can worsen your financial situation if not managed properly
- Plastiq fees can add up
When It Makes Sense:
- Earning a big welcome bonus
- Avoiding late fees (if you can pay your credit card bill in full)
When It Doesn’t Make Sense:
- You’re already struggling financially
- You can’t pay your credit card bill in full
- The fees outweigh the rewards
Remember:
- Paying your mortgage with a credit card should be a temporary strategy, not a long-term solution.
- Focus on paying off your credit card in full each month to avoid interest charges.
- Explore other ways to earn rewards and manage your finances.
Bonus Tip: Check if you can pay other bills (utilities, tuition, etc.) with a credit card to maximize your rewards.
It is possible to use a credit card to pay your mortgage, but you should exercise caution and weigh the associated costs and risks.
Happy swiping (responsibly)!
Can you pay the mortgage with a credit card?
Its your credit card and its your mortgage. As long as the bill is paid, you would think it would be easy to use the former to cover the latter. You could do this to earn credit card rewards on a large purchase or, if you’re tight on cash, to buy some time before having to make your house payment. But thats not always the case.
In fact, it’s generally a stretch to find companies that accept debt-for-debt payments. The terms of the credit card issuer, your mortgage lender, and the network of credit cards you use—Visa, Mastercard, American Express, or Discover—will all determine whether you can pay your mortgage with a credit card.
For a fee, a third-party service might be able to help you get past some of the obstacles, but you should consider whether this is the best course of action.
How to pay your mortgage with a credit card
A third-party payment service like Plastiq facilitates mortgage payments with a Discover or Mastercard credit card. Visa and American Express don’t currently allow mortgage payments through this service.
You pay Plastiq a fee equaling 2. 9% of your mortgage payment every time you use your credit card. The mortgage lender, credit card issuer, and credit card payment network (Visa, Mastercard, etc.) are no longer required when Plastiq delivers an electronic payment or writes the mortgage lender a check, if the lender approves it. ) — to approve the transaction.
You can pay manually this way or set up automatic payments. You also have the option of making a one-time payment.
Then, ideally, you quickly repay your credit card for the full amount of the mortgage payment plus the processing fee. You will receive rewards as you would with any other purchase if you used an eligible rewards credit card to make the transaction.
How To Pay Mortgage With Credit Card (3 Simple Methods)
FAQ
Can I pay my mortgage payment with a credit card?
Is it possible to pay off mortgage with credit card?
Can I use Visa credit card to pay mortgage?
Why can’t you pay mortgage with debit card?
Can a credit card be used for a mortgage payment?
With Plastiq, for example, Visa and American Express cards can’t be used for mortgage payments. Set up your mortgage payment through the service. A fee will be tacked onto the amount of your mortgage payment and will appear on your bill. Pay your credit card bill in full as soon as possible.
What happens if you pay a mortgage on a credit card?
Let’s say your mortgage payment is $1,000. If you incur a 2.85% fee to make that payment, you’re losing $28.50. Still, you might be able to come out ahead in one of these scenarios: Your credit card offers ongoing cash back (or the equivalent in points or miles) of 3.0% or more on this payment.
Can I withdraw money from a credit card to pay my mortgage?
You can withdraw your mortgage payment amount using a credit card at an ATM or bank, and use that money to pay your mortgage. However, cash advances on a credit card often incur substantial fees. A typical fee is 5% of the cash advance amount. Also, if you withdraw the money at an ATM, you could incur additional fees.
How do I pay my mortgage with a credit card?
The following methods outline how to pay your mortgage with a credit card. You can pay your mortgage with a credit card using a third-party service. Once your payment is received, the third-party service will send a paper check or electronic payment through an automated clearing house (ACH) to your mortgage lender.