It’s important to understand how and when you can pay for rent with a credit card so you are financially responsible, stay in control of your finances and don’t violate your lease.
You’ve found the perfect apartment or house to rent and now you’re wondering one thing — can you pay for rent with a credit card?
Well, it depends on your landlord. Some property owners allow it and for some — it’s a hard no.
If you can pay by card, how do you do it? Below are some options for how to pay for rent with a credit card.
5 ways to pay rent using a credit card
Something great has happened and you’ve found out you can pay for rent using your credit card.
Paying with a credit card or a third-party service will largely depend on your landlord’s or apartment’s guidelines. That being said, there are several third-party services that help residents pay for their rent online. While some will require your landlord to have an account others do not.
Here are five different services you can use to facilitate paying rent with a credit card:
RentPay is a great option for paying your rent online and it’s simple to use. All you have to do is invite your landlord to apply, set up a profile and add a credit or debit card.
You can also pick what type of payment you’d like to do — automatic monthly payments or manual monthly payments. Once your landlord has accepted the payment you’ll be notified.
It’s good to note however that credit cards do have a 3 percent flat fee on all transactions, so your rent will be slightly higher when you use a credit card.
2. Venmo and Paypal
Apps such as Venmo or Paypal easily offer options for a variety of transactions.
They do require both the resident and the landlord to have an account. They’re both easy to use and accept either a credit card or you can add your bank account. These services allow you to quickly send money digitally to your landlord.
PlacePay is another online option for paying rent online or through an app.
This website has many great features for renters. Some include the ability to split the rent between roommates, the ability to receive notifications if your roommate hasn’t paid yet and autopay.
PlacePay does require your landlord to accept direct deposit and has a 2.9 percent fee on credit and debit cards.
ClickPay accepts credit card payments and then deposits the funds into your landlord accounts. This does mean that your landlord will have to have an account, as well.
They also charge a 2.95 percent fee, however, your landlord can choose to cover that fee for you if they’re willing. It doesn’t hurt to negotiate this into your lease if you plan to pay using this service.
5. Pay directly with a credit card
It is sometimes possible to pay for your rent directly with a credit card through your landlord. You could pay with cards like MasterCard, American Express or a Visa.
While this is rare, it’s not impossible. However, if your landlord does allow this there is a chance they’ll charge a large fee for the service.
Things to consider when paying rent with your credit card
While paying for rent with a credit card is convenient, at the end of the day there are things you need to consider to determine if it’s worth it or not.
- Fees are something you’ll want to consider before deciding to use your credit card for rent. At first, they might seem like little things but over time the fees can add up costing you more monthly. For instance, if your rent is $1,200 monthly and you have a 3 percent fee that will cost you an extra $36 a month. At the end of one year, that’s an extra $432 in fees.
- Your credit score is something to consider as well. Paying for rent on a credit card has the potential to hurt your credit score due to your credit utilization ratio. Your credit utilization ratio is the amount of available credit you’re using. If you keep charging rent, you’ll owe more on the balance and have less credit available. This is fine as long as you pay your balance and don’t accrue more debt.
- Maxing out your credit card is a possibility as well. This would then prohibit you from using it for other purchases as the credit is already taken.
- Interest payments are something else to think about. It’s important to pay your credit card bills in full to prevent high-interest payments.
- Paying the rent with a credit card can have some upsides like not having to write a check or spend your cash.
- Paying for rent with a credit card makes it so you don’t have to worry about being late as you can schedule it.
Options for paying rent when you can’t use a credit card
Sometimes you have no control and your landlord will not allow the use of credit cards for rent. What do you do then? Here are some other options for rent payment.
You can always go the good old-fashioned way and pay for rent with a check. You can either use a personal check or a cashier’s check. One of the best benefits of a cashier’s check is that there is a paper trail. Checks are easy to keep track of and are reliable.
While it is difficult to watch your cold, hard cash fly out of your hands, it’s another great option to pay for rent. This way you don’t have to wait for the check or deposit to land. You know right then and there exactly that the money is in the right hands.
If you’re going to use cash, however, make sure to keep track of it and keep notes in case you ever need to prove you’ve paid.
Set up a direct deposit from your account to your landlord’s account. This method is an inexpensive, easy way to pay your rent on time.
Options for paying rent
Paying rent is never fun, however, it’s a necessary part of life. The good news is there are many different ways to go about paying rent whether it’s cash, a check or a credit card. Just remember to do your research before paying with a credit card and to make sure your landlord allows it. By doing these things ahead of time, when rent comes due, you’ll be all ready to go.