Can You Pay Rent With A Credit Card?

Paying rent is an unavoidable expense for most people. As rents continue rising across the UK, you may be wondering if you can pay rent with a credit card to earn rewards, buy yourself some extra time to pay, or access cash.

Key Takeaways

• Paying rent with a credit card can allow you to earn rewards points and sign-up bonuses, but the value may not offset fees charged.
• Treating rent payments as a cash advance from your credit card is extremely costly due to fees around 3-5% and high interest rates near 20% APR.
• Many landlords do not accept credit card rent payments to avoid processing fees and delays in getting paid if balances aren’t paid quickly.
• If paying rent with a credit card, pay the balance off in full each month to avoid interest charges that can quickly snowball out of control.
• Alternatives like debit cards, bank transfers, cash, or money orders are typically safer options than paying rent with a credit card in the long run.

Can You Pay Rent With A Credit Card?

You can pay rent with a credit card, but proceed with caution. The main risks are high interest rates around 20% APR if you carry a balance, cash advance fees typically 3-5% of the amount paid, and credit damage if you cannot pay off the balance quickly.

First verify if your landlord accepts credit card payments to avoid issues. Have a plan to pay off the full balance by the due date. With prudent use, credit cards can provide convenience and even rewards. But if mishandled, the fees and interest can spiral quickly.

Safer options are debit cards, bank transfers, cash, or money orders. Given the tradeoffs, credit cards should not be your primary long-term method for rent.

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Pros of Paying Rent With a Credit Card

Paying rent with a credit card can offer some potential benefits:

• Earn rewards points and sign-up bonuses: Some travel or cashback reward credit cards offer generous bonus points for reaching a minimum spend threshold within a set timeframe. Depending on your rent amount, you could earn thousands of points to put toward free flights, hotel stays, gift cards, or cash back. However, you’ll need to make sure the value of the rewards outweighs any fees.
• Access cash in a pinch: If you have available credit, paying rent on your card functions as a cash advance, allowing you to withdraw money to pay your landlord. This can be useful in an emergency. But it is an extremely costly way to borrow cash due to high interest rates.
• Delay payment due date: Credit cards essentially buy you a 30+ day interest-free loan depending on your billing cycle. If your rent is due on the 1st but your credit card bill isn’t due until the 25th, you’ve bought yourself a few extra weeks as long as you pay off the balance in full.

Credit Card Rewards Example

Card	Sign-up Bonus	Rewards Rate	Annual Fee
Chase Sapphire Preferred	60,000 points	2x on travel/dining	£0 intro for 1st year then £99

Based on £1,000 monthly rent, you could earn 60,000 point sign-up bonus plus 24,000 points in the first year. Valued at ~£700.

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Cons of Paying Rent with a Credit Card

While potentially rewarding, paying rent with a credit card also carries some risks:

• Cash advance fees: Credit card companies charge fees for cash advances, usually around 3-5% of the amount advanced. This applies when paying rent since you are accessing cash to pay your landlord.
• High interest rates: The average credit card interest rate hovers around 20% APR. If you cannot pay off the balance in full, interest starts accruing immediately and can quickly spiral out of control.
• Credit damage: Maxing out your credit card or carrying a high balance can hurt your credit score by increasing your credit utilization rate. Poor credit can jeopardize approval chances for loans or mortgages.

What Do Landlords Allow?

Before paying rent with a card, you’ll need to verify what your landlord accepts:

• Many landlords prohibit rent payments by credit card to avoid transaction fees which eat into their rental income. Large housing associations in particular tend to not accept credit cards.
• Landlords may fear delays in getting paid if you cannot pay off the credit card balance right away and get hit with interest and penalties.
• Smaller landlords may be more flexible to accept credit card payments to avoid late rent checks.

Tips for Asking Your Landlord

• Check your lease agreement for the accepted payment methods
• Call your landlord or property manager to ask about credit card policies
• Clarify which credit cards they accept and if there are any fees

Best Practices for Paying Rent with a Credit Card

If you decide to pay rent with a credit card, make sure to:

• Verify landlord accepts credit card payments
• Understand if there are any convenience or processing fees
• Pay your credit card balance in full each month to avoid interest charges
• Set payment reminders to avoid late fees and credit damage

Good first credit card options for paying rent:

- Chase Freedom (No annual fee, 0% APR intro period)  
- Citi Double Cash (2% flat cash back on all purchases)

Should You Take Out a Cash Advance to Pay Rent?

• Cash advance fees are typically around 5% of the advanced amount
• Cash advance interest rates are steep at 25%+ APR
• Requires having sufficient available credit limit to withdraw the needed cash

As you can see, the risks and downsides typically outweigh potential upside. Proceed with extreme caution if taking a cash advance to pay the landlord.

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Alternatives to Pay Rent with a Credit Card

Paying rent with a credit card has some benefits but also risks. Safer options to explore first:

• Debit card
• Bank transfer
• Money order
• Cash
• Personal check

While not as rewarding as credit card points, these options avoid hefty fees and interest charges that can quickly snowball out of control.

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Conclusion

Paying rent with a credit card can work in a pinch or to maximize rewards, but only if you pay off the balance in full each month. And only after verifying your landlord accepts credit cards with no processing fees. Because of high interest rates and credit risks, it should not be used as an ongoing method to borrow cash to pay your landlord when lacking funds.

Review your lease agreement and clarify with your landlord about credit card rent payments first. And have a plan for paying the balance to protect your finances and credit standing. With prudent use, paying rent via credit card can provide some advantages – but it also carries risk if mishandled.