Yes, you can pay your mortgage with a credit card. However, you will typically have to use a third-party provider or get a cash advance. Most financial institutions will not accept credit card payments directly, so you cannot just give them your credit card number and set up automatic payments. Instead, you’ll have to find a way to pay through a third party.
- Use Plastiq
- Get a Cash Advance
- Use Venmo
- Convert Gift Cards to Money Orders
1. Use Plastiq
The best way of paying your mortgage with a credit card is by using Plastiq. Plastiq is a service that allows people to pay various bills with a credit card, including their mortgage. Plastiq charges a 2.9% fee for the use of all debit and credit cards. However, for mortgage payments, they only accept Discover and certain types of Mastercard. The added fees will make it slightly more expensive than paying directly from your bank account. But, if you can find a card that offers 3% cash back or other rewards, it may pay for itself.
2. Get a Cash Advance
A cash advance is when you withdraw cash against your credit limit using your credit card. It’s essentially a short-term cash loan you can use toward whatever you like, including paying your mortgage. Not all credit cards allow cash advances, so you’ll have to check with the provider to find out what’s permitted. Plus, some cards charge substantial cash advance fees and have a high APR, making this technique expensive in the long run. But if you just need a quick loan to help you bridge the gap between your next paycheck, a cash advance is an easy solution.
3. Use Venmo
Venmo is another popular option for paying a mortgage with a credit card. You can use Venmo to provide a cash advance by simply inputting your card information and sending a Venmo payment to yourself. Venmo charges a 3% fee for sending money, so be careful about using cards that also charge a large cash advance fee. For this technique, American Express is often recommended because they don’t charge cash advance fees, so all you’ll pay is the expense of using Venmo. This can be an easy way to transfer funds into your account when needed, then pay down the balance over time.
4. Convert Gift Cards to Money Orders
Another way to pay your mortgage using a credit card is to use purchase gift cards that you then convert to money orders. This technique can be a bit more complex but may save you in fees. First, you’ll go to a store that sells gift cards and purchase enough to cover your mortgage payment using your credit card. Depending on the denominations offered, you may have to buy a large batch. But make sure that the card can be used for anything and isn’t exclusive to a particular brand or establishment.
Some gift cards charge activation and inactivity fees, so research which type is best for your situation. If you’re smart with your calculations, you can often spend less than you would on the typical transaction fee through a third-party provider like Venmo or Plastiq.
Then, go to an establishment that sells money orders and purchase one using gift cards. Most merchants won’t accept credit card payments for money orders, which is why you’ll need the gift cards. Many mortgage lenders will accept money orders as payment if they have a local branch you can visit in person. This strategy requires more leg work but can save you a ton in fees.
Using a credit card to pay your mortgage can be a good idea if you're in a financial pinch. It can also be a good way to earn miles or points, but to be fair, those points will typically be worth less than the fees you might incur to make a mortgage payment on your card.
Keep in mind that you should only use a credit card to pay your mortgage if you have a realistic strategy for repaying the money. If you’re already behind on payments, you’ll only make things worse by adding high-interest credit card debt and potentially maxing out your credit lines. However, there are plenty of situations where paying your mortgage with a credit card makes sense, and you can do it in several ways.
Ultimately, paying your mortgage with a credit card can be risky if you don’t have a strategy to pay it back. You may be better off negotiating with your lender or selling your home if you’re at risk of long-term default. But if you know, you have the income to repay and just need a quick loan or want to take advantage of any rewards or incentives your provider offers, paying your mortgage with a credit card can be a great solution.