Can You Pay Rent With a Credit Card?

Yes, sometimes.

You can pay rent with a credit card if your landlord accepts credit cards, or if you use a third-party service that charges your card and then pays your landlord by cheque or transfer.

Just know that it usually comes with extra fees, so it can cost more than paying by e-Transfer or debit.

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How People Pay Rent With a Credit Card

1) Your landlord accepts credit cards

Some property management companies let you pay rent by card through an online portal. If they do, they may charge a processing fee.

2) You use a third-party payment service

Some services let you pay by credit card, then they send your landlord the rent another way (like a cheque or electronic payment).

These services usually charge a fee that can be around 1% to 3% (or more), depending on the provider and card type.

Why Paying Rent by Credit Card Can Get Expensive

Here’s what to watch for:

• Processing fees (this is the big one)
  Even a 2.5% fee on $2,000 rent is $50 extra each month.

• Interest if you do not pay your card off right away
  If rent puts you into a balance you cannot pay in full, interest can add up fast.

• Cash advance risk in some cases
  Some “cash-like” transactions can be treated differently by card issuers. Cash advances have no grace period, and interest starts immediately.

When Paying Rent With a Credit Card Might Make Sense

It can sometimes be worth it if:

• You can pay the credit card off in full right away

• The fee is small, or there is no fee

• You are using it for a short-term situation and you understand the cost

If the fees are higher than the rewards you earn, you are usually better off paying rent the normal way.

What to Check Before You Try It

• Does your lease allow credit card payments, and does your landlord accept them?

• What is the exact fee (flat fee or percent)?

• Will the payment be treated as a purchase or something else?

• Will you earn rewards on it, or not?

• Can you pay the balance in full to avoid interest?

If you are unsure, call the number on the back of your credit card and ask how that payment type is treated.