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Can you pay your mortgage with a credit card? The short answer is yes, and it really isn’t that difficult. Of course, you need to do it the right way and for the right reasons. Keep reading to learn how!
For years, my family has been using credit card rewards to travel the globe for (almost) free. We’ve visited places like Rome, Paris, London, Athens, numerous Caribbean islands, and more. Using credit card rewards has saved our family tens of thousands of dollars, allowing us to travel anywhere we’ve wanted for pennies on the dollar.
So, if you love points and miles like I do, you’ve probably wondered if it’s possible to pay for big ticket items with a credit card to earn more rewards. You know, the big stuff – your mortgage, daycare, and car payment.
Fortunately, you can! In fact, I’ve actually used credit cards to pay over $100,000 on my mortgage to earn additional points. Through the process, I discovered a few ways to get the job done with minimal hassle and expense.
Still, you must tread carefully. Playing the credit card rewards game can be dangerous, especially if you’re considering paying your mortgage with a credit card. Do it right, and you’ll earn thousands in free stuff. Do it wrong, and you’ll end up in a complete financial mess.
If paying your mortgage with a credit card sounds too risky, just close this page now. There’s no shame in knowing your limits. However, if you want to earn extra points, have the discipline to do it right, and have the guts to take the plunge, keep on reading!
How to Pay Your Mortgage With a Credit Card: The Basics
Paying your mortgage with a credit card isn’t super difficult, but you should consider reserving this tactic for special occasions —like earning a signup bonus. Let’s take a look at how to do this properly so you can get the most bang for your buck.
- Pick a card – Choose the rewards card (or cards) that offers the best signup bonus and fits your goals. Find our favorite cards here.
- Grab a signup bonus – Before you use a credit card to pay your mortgage, you need to make sure the math works. Because extra fees may be involved, this tactic works best when you are attempting to earn a signup bonus.
- Choose a payment option – Most lenders will not allow you to pay them directly with a credit card. Thus, you’ll need to use a third party to handle the transaction. We’ve included a few options for you to consider below.
- Pay mortgage with a credit card – Use your rewards credit card to pay your mortgage (or other legitimate bills like your rent, health insurance, car payment, etc.)
- Pay it off – You don’t want to cut into your rewards earnings by paying interest. So, pay your credit card bill in-full at least once a month.
Ta-da! There you have it. Not too tough, right?
2 Ways to Pay Your Mortgage With a Credit Card
Although there are several ways to pay your rent with a credit card, unfortunately, most mortgage companies don’t offer this option. Paying your mortgage with a credit card does take a little work, so you’ll have to get a bit creative.
Luckily, there are several third-party options available. Here are 2 ways that you can pay your mortgage with a credit card and start earning some massive points.
Oh, and one last time: Do this at your own risk!!!
Plastiq is our favorite way to pay your rent or mortgage with a credit card. This has been our “go to” option, and you can count us impressed.
Frankly, Plastiq is a great way to pay ANY big ticket item – like your mortgage, student loans, and more. We’ve used it to pay off our house AND a new addition that we built.
Again, you can use it any time, but it’s most valuable when trying to meet minimum spending requirements. (Please note, you can no longer pay mortgage bills with Visa or American Express through Plastiq. Other brands and types of bills are still good to go though!)
To get started, simply create a free account, connect your favorite credit card, and direct them who to pay. Plastiq will then send the money via paper check or bank transfer before the due date.
The biggest downside to using Plastiq is that they charge a fee of up to 2.5% on each transaction. Because of this, it’s really only a good option for most people if they are chasing a signup bonus.
To put the fee into perspective, if you’re trying to meet a $4,000 minimum spend, you’ll end up owing $100 in fees. That might seem like a lot, but some signup bonuses are worth up to $500 in gift cards. They’re worth even more if you book travel and or experiences through credit card portals. So, even with the fees, you usually come out ahead – especially when meeting a minimum spending requirement.
With that said, Club Thrifty readers can use our special referral code to get $500 in “fee free” transactions. Just use the code “671741” when you sign up using our link below.
2) Money Orders
If you’re able to buy PIN-enabled gift cards in your area, you can also use them to buy money orders, provided you can find a store that will allow it. My local Kroger couldn’t care less how you pay for money orders, but CVS is kinda a stickler. Try taking your PIN-enabled gift card anywhere money orders are sold and see what you can (discreetly) get away with.
If your mortgage is with a big bank like Chase, you can simply take your money orders into the bank and pay your mortgage in person. If you need to mail your money orders in, make sure to save your money order tracking numbers!
Pay Mortgage With a Credit Card: Rules of the Game
Now that you know where you can pay your mortgage with a credit card, let’s cover some things to watch out for.
As you probably know, the credit card company isn’t giving you a signup bonus just to be nice. They want to make some money off of you. With the signup bonus, they are hoping to whet your appetite just enough so you’ll continue spending on the card.
You need to understand that, while the credit card companies make money every time you swipe your card, the real money is made when you carry a balance. They want to suck you in and get you addicted to their drug, so they offer you this fancy free gift so you’ll take your first sniff.
Always remember, you want to use these rewards to create more freedom for yourself, not less. As such, your job is to avoid falling for their trap at all costs.
If you don’t think you can handle it, DO NOT play the game.
To get the most out of your rewards points, you need to make sure to follow 2 simple rules:
1) You Can Never, Ever Pay Interest…Ever
Was that clear enough? By using a credit card to pay your mortgage, you are attempting to earn points that will help make things cheaper. Paying interest on your purchases does not help the cause.
When you carry a balance and end up paying interest, you pretty much defeat the entire purpose of chasing points. Besides that, your mortgage payment has interest wrapped into it already. Carrying a balance means you’ll be paying your mortgage at a much higher interest rate. This causes a mess of problems that will restrict your lifestyle rather than improve it.
Remember, your goal is to get free stuff by working the system, not paying more for the stuff you already have.
2) Don’t Buy More Than You Would Without the Card
Spending money on junk you wouldn’t normally buy just to hit a minimum spending requirement is just plain stupid. For example, spending an extra $500 on a bedding set you weren’t planning to buy means you haven’t saved any money on that $500 hotel room stay. See what I mean?
Use the card to pay for stuff you’d normally buy or already have plans to buy. Don’t use it as an excuse to overspend. Again, you are trying to get stuff for free, not buy more junk that you don’t need.
Frequently Asked Questions
Still not sure if you want to pay your mortgage with a credit card? Use the FAQs to answer some of your questions.
Before you start using this method, it is important to ask yourself if it even makes sense. In other words, are the points and miles you’re trying to earn worth more than the fees you’re paying?
The fact is that paying your mortgage with a credit card should only be done when you have a lot to gain. For most people, the math simply doesn’t make sense. In my personal experience, doing this has only been worth it if I’m earning a sign-up bonus…and only in an emergency.
Thanks so much for reading. Be careful, have fun, and good luck!