Can You Pay Rent With a Credit Card?

If you are a renter or landlord new to online payments, you might be wondering – can you pay rent with a credit card? The simple answer is, yes, through secure online rent payment platforms tenants can pay rent with a credit card. With an increasing amount of back-rent owed throughout the U.S. due to the current economic crisis, renters and landlords are both struggling. Bear in mind, the CDC’s Eviction Moratorium does not relieve tenants of paying rent or provide rent relief of any kind – this means landlord-tenant communication is essential to come up with a payment plan or an alternative option that will work for both landlords and tenants.

While there are a variety of ways to pay and collect rent, paying with a credit card can be a practical solution for renters who need more time at the beginning of the month, or who might want to keep paying rent as best they can so they can avoid a build-up of rent, late fees, and interest. Keep reading below to find out how to pay and collect rent with a credit card as well as the benefits of doing so. 

Benefits of Paying Rent with a Credit Card

Paying rent with a credit card has many advantages, mainly, it allows for flexibility. If renters don’t have enough cash in the bank to make their rent payments when they are due, using a credit card can buy them time to avoid missing rent. Additionally, there are personal benefits for renters when they pay with a credit card which include the following:

  • Earning Rewards: Credit cards typically come with different types of rewards for account holders. Some incentives include cash back, travel rewards, and 0% APR, meaning there will be no interest on balances or transfers for a certain period of time. For example, if you pay rent with a credit card with cash back rewards, you can receive a percentage back over time which often makes up for processing fees and, in the long-run, can be a great benefit.
  • You Can Build Your Credit Score: If you are just starting to build your credit score, remember, you won’t have an official score until six-months of consistent payments and data. However, once you continually make rent payments on-time along with other payments, your score will grow which is extremely beneficial for your financial stability and future investments.
  • Gives You More Time: Because credit cards don’t have to be paid off until you get your monthly statement through the credit card company, paying your rent with a credit card can help alleviate financial stress. Everyone’s pay schedule is different and some people may not receive their paychecks until later in the month while rent is due at the beginning.

While paying rent with a credit card can be a great return on investment for renters, it’s important to note the only drawback with credit card payments, is that they usually come with an online processing fee of around 3.49%. However, if you are using a credit card with rewards, you can easily gain the fee from processing back through cash back or travel rewards.

How to Pay Rent with a Credit Card

Communicating with your landlord during difficult times will enable you to have open and honest conversations so you both can figure out a solution where you can pay rent on time by either coming up with a rent payment plan or negotiating other options. Renters can easily pay their rent with a credit card through online rent collection accounts their landlords set up through property management software – this is a safe and effective way to pay rent online that works for both sides.

When you’re paying rent with a credit card, it is vital you try to keep up with credit card bills as best you can so you don’t hurt your credit score or incur interest on the amount owed. Luckily, paying your rent the first of the month when bills are typically due at the end or the next month allows you time to pay yourself back. Additionally, people’s paychecks will come at different times so if yours won’t come in until mid-month or even later, you can still pay your rent on time with a credit card and avoid late fees. Some other easy things you can do if you are using a credit card to pay rent is to, first, avoid charging other expenses on your credit card and, second, to set reminders for when rent is due as well as when your credit card payment is due. If you are worried about a processing fee, consider connecting your bank account for an ACH transfer that will not include a fee.

Landlords: Collecting Rent with a Credit Card 

As we mentioned above, landlords need to communicate with renters before rent is due to avoid missed payments which can be detrimental to both renters and landlords. If you’re wondering how to collect rent online as a landlord, read our full guide here. Collecting rent online has many benefits and with world dynamic being primarily contactless, it is also a necessity. You can easily set up online rent payments through your TurboTenant account in less than five minutes for free. Tenants have the option of setting up an ACH account or to pay rent with a debit or credit card with a 3.49% processing fee. 

Being flexible, especially during the pandemic, is crucial – landlords should consider halting late fees and interest for rent payments while also considering partial credit or partial cash payments if necessary. If a tenant comes to you to negotiate rent, there are a variety of different payment plans or alternate options to consider. 

What is the Best Credit Card to Use for Rent?

When it comes to credit cards, you should always do your research to learn what will work best for your lifestyle and financial situation. Cards that give you cash back are extremely popular and can be useful in times when money can be short. Travel rewards, on the other hand, might not be as pertinent right now with COVID-19 cases on the rise and the decrease in traveling both domestically and internationally. Here is a helpful list for first time credit cards if you are new to the process. Remember, building credit takes time and it’s important to take credit card payments seriously as it can impact your rental process, loans, and other future investments you hope to make.

Overall, paying rent with a credit card has many benefits for renters, if used wisely. If you are struggling to make rent payments using cash or checks, talk to your landlord about collecting rent online so you can pay with a credit card to not only buy yourself more time in the month, but to also boost your credit score and collect rewards.

FAQs 

Is it safe to pay rent with a credit card?

Yes, it is safe to pay with a credit card as long as you are going through a secure site where your information is encrypted. TurboTenant uses industry leaders Stripe and Plaid to process and transfer rent payments safely.

Should I pay rent with a credit card or debit card?

With a debit or a credit card, a processing fee is usually collected. Obviously, it is up to your financial situation to see if you have enough funds in your checking account to pay your rent – debit cards will instantly draw cash from your accounts while credit card bills won’t be due until the end of the period.

Does paying rent with a credit card impact my credit score?

Paying for rent with a credit card is like any other credit card purchase – as long as you stay within your allowed limit and pay your credit card bills on time, your credit score can be positively impacted. If you are late on credit card payments, however, this can affect your score negatively.

Share on facebook
Share on twitter
Share on linkedin
Most Popular Posts

Interested in streamlining your rental process?

TurboTenant makes managing your property simple with features like one-click rental marketing, extensive online applications, and free credit & background checks for landlords.

NEWSLETTER SIGN UP

Stay up to date on the ins and outs of being a landlord.

Subscribe to our weekly newsletter so you don’t miss out on our latest articles and resources.

TURBOTENANT BLOG

Read Our Latest Articles

Join 250,000+ landlords that choose TurboTenant to streamline how they manage their properties.

It’s completely FREE for landlords. No tricks or trials to worry about. So what’s the harm? Try it today!

NEWSLETTER SIGN UP

Stay up to date on the ins and outs of being a landlord.

Subscribe to our weekly newsletter so you don’t miss out on our latest articles and resources.