Want to pay your mortgage with a credit card? Yeah, so did I.
You see, I’m completely obsessed with earning points and miles with my credit cards.
Can you blame me?
We’ve used credit card rewards to travel the globe for (almost) free. I’m talking about trips to places like Rome, Paris, London, Athens, all across the Caribbean, and more. Seriously, credit card rewards have saved our family tens of thousands of dollars, allowing us to travel anywhere we’ve wanted to go for pennies on the dollar.
If you’re into earning points and miles like me, you’ve probably wondered if it’s possible to pay for big ticket items with a credit card. You know, the big stuff – your mortgage, daycare, and car payment.
Fortunately, you can! It is possible, and there are several ways to get the job done with minimal hassle and expense.
While the process itself is easy, there’s a lot of strategy that goes into earning your points and miles. Getting the most out of your rewards takes knowledge and planning.
But 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 get 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 run away 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
So, how do you actually go about paying your mortgage with a credit card? Let’s take a look at how to do this properly. The steps are simple, just make sure you follow them!
- Pick a card – Choose the rewards card (or cards) that offers the best sign-up bonus and fits your goals. Find our favorite cards here.
- Grab a signup bonus – Wait for and über huge sign-up bonus to be offered. Ask us if you are getting the best deal available by clicking here.
- Choose a payment option – Decide which payment option works best for you from the options covered in detail 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 – Pay your credit card off in-full at least once a month
Ta-da! There you have it. Not too difficult is it?
Personally, I like to pay my credit cards off more than once a month, just to make sure that I don’t carry any sort of balance. I absolutely abhor owing money, especially on a credit card. Regardless, just make sure that its paid before interest is due.
What Credit Card Should I Get?
With so many different rewards cards on the market, it can be overwhelming to choose. To get started, set a clear goal about the type of rewards you’d like to earn.
Although cash back credit cards are good because they’re so versatile, I believe travel rewards provide the most bang for your buck. If you travel often or want to save for a specific trip, it’s important to select the best card (or cards) to make those travel plans happen…and happen cheaply. To help you get started, we’ve created this awesome guide on how to travel for free. (Hurry and check it out, we’ll wait 😉 )
With oodles of different airlines and hotel chains across the world, getting the most from your travel points takes a little time and effort. Also, keeping all of the offers straight can get confusing. Creating a travel plan ahead of time can be super helpful, that way you know exactly which cards will be most beneficial for your trip.
If you need help selecting the right card, I can help. Let me know where you’re going and when, and I can help you find the best card to fit your travel plans. To get started with your personalized plan, just fill out a short form for my free travel rewards advice here.
My Favorite Travel Rewards Card for Beginners
Chase Sapphire Preferred Card – The Chase Sapphire Preferred Card is my favorite travel card to recommend for most beginners. The signup bonus is huge, the points transfer to almost a dozen different loyalty programs, and you can even redeem your points for cash if you want. I recommend this card to almost everybody who has never had it, so I’d check this one out first. You won’t be sorry.
Unfortunately, there is one problem – you can’t use this card with one of the two payment options listed below. So, if you want to pay with Plastiq, you’ll need to find a Mastercard that works instead. You can find a list of all our favorite rewards cards here.
2 Ways to Pay Your Mortgage With a Credit Card
Even if you do everything right, paying your mortgage with a credit card takes a little work.
Although there are several ways to pay your rent with a credit card, unfortunately, most mortgage companies don’t offer this option. So, we 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. So, it definitely isn’t the cheap. Because of this, it’s really only a good option for most people if they are chasing a signup bonus.
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 here!
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.
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!
See Also: Unison Review – A New Way to Avoid PMI
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.
Can I Pay My Mortgage With a Credit Card?
Yes, you really can. Even though you may have to jump through some hoops, you can definitely use a credit card to pay your mortgage, rent, and other large bills.
Why Would I Pay My Mortgage With a Credit Card?
The whole point of paying your mortgage with a credit card is to earn additional rewards points that you’ll redeem to make expensive things cheaper (even free!). You can use these points to stay and fly for free to places like Europe, the Caribbean, and even China!
If you don’t want to travel, you may be able to redeem your points for “cash back.” You can even earn points to earn free gift cards, tickets to events, and more.
While it’s possible to use this strategy with any type of card, the biggest pot of gold comes from earning the massive credit card signup bonuses. Generally speaking, paying your mortgage with a credit card is most valuable when meeting spending requirements for a signup bonus.
What About Debt?
We all know that debt blows goats. Its sucks. And both mortgages and credit cards are types of debt, right?
Why the heck would you even want to mess with this stuff? Aren’t you just kicking the can down the road…and paying extra for that can besides?
Of course not, silly!
Every time you use a credit card to pay your mortgage, you are going to be paying it off – with cash – in full. You’ll do this at least once a month. (More on that in a minute!)
You see, if our master plan is going to work, you can’t start accumulating more debt! Owing money is completely restrictive. It ties you down, forces you to work longer and harder than you have to, and hampers your ability to do the things you really want to do with your life.
Use this method to gain more freedom, not less. You want to make the bank’s own scheme work for you, not them.
Pay your mortgage with the credit card. Pay off the balance. Get free stuff.
Spectacular, isn’t it!?!
What is a Sign-Up Bonus?
Let’s start with how a basic rewards card works.
Typically, you earn a set amount of points for spending money on your credit card. For instance, every dollar you spend on a card may earn you 2 points. You can redeem these points for flights, gift cards, hotels, or other merchandise. You may also be able to transfer these points to partner loyalty programs to gain even more value.
Not bad, right?
While earning these points is a nice perk, the Holy Grail of rewards points is landing the ginormous sign-up bonuses that are regularly offered by credit card companies. You see, most of these companies give you oodles of points just for signing up to use their card. (Amazing, right?) In fact, it isn’t unheard of for cards to offer upwards of 50,000 bonus points just for enrolling in the program.
Usually, you must earn these bonuses by spending a specified amount of money on the card within a stated period of time. For instance, you may need to spend $3,000 on the card within 90 days to qualify for the sign-up bonus.
That’s where paying for big ticket items, like your mortgage, comes in.
Will Chasing Credit Card Rewards Ruin My Credit?
That is a great question! In fact, it’s such a great question that we have written an entire article about it. If you want to know the effect of credit card rewards on your credit score, simply follow the link to read more!
What About Options Like Bluebird, Target REDCard, and Others?
At one time, there were several different ways to pay your mortgage with a credit card. Unfortunately, most of those options are no longer available or reliable. While there may be some random stories of people using Bluebird to make this happen, it’s simply not a reliable option any more for most people.
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 helping the cause.
By carrying a balance and paying interest, you pretty much defeat the entire purpose of chasing points. Besides that, your mortgage payment already has interest wrapped into it. By carrying a balance, you’re paying off your mortgage interest using a credit card loan that is probably charging you a much higher interest rate. Now you’ve created a giant shitstorm that is going to restrict your lifestyle rather than improve it.
Your goal is to get free stuff through 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 crap that you wouldn’t normally buy just to hit a spending limit is pretty much the definition of stupidity. For example, if you spend an extra $500 on a bedding set you weren’t planning to buy, you haven’t saved yourself any money on that $500 hotel room stay, have you?
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.
Before you start using any of these methods, it’s 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?
To me, it’s usually only worth it if I’m earning a sign-up bonus and only in an emergency.
For most people, spending money on gift cards, paying a percentage of the total, and taking the time to chase all of this down just doesn’t make sense. It costs a lot of time (and some money) that may be better spent elsewhere.
On the other hand, there are options for paying your mortgage with a credit card. However, you should only use them when you have a lot to gain (ie: meeting a minimum spend for a large signup bonus).
Don’t forget, we are here to help you keep all of this rewards business straight. If you’d like to receive alerts about rewards points, you can always sign up for our VIP Club Newsletter. We like to send out special email alerts when some of our favorite credit cards are offering their best signup bonuses, but we can’t get them to you if we don’t have your info.
Thanks so much for reading. Be careful, have fun, and good luck!