For many renters, their monthly rent payment is the biggest recurring expense. If you have a rewards credit card or are struggling to keep up with your basic needs, you may wonder if you can use your credit card to pay your landlord.

While it's technically possible to pay rent with a credit card, it's important to understand the potential pitfalls and the right way to do it. Here's what you need to know.

Can you pay rent with a credit card?

Yes, it's possible to pay rent with a credit card. You may have a few different options, depending on your situation.

Pay your landlord or property manager directly

Some landlords and property managers use a payment system that allows tenants to pay with a credit card. Unfortunately, many of these services charge a convenience fee, which typically ranges from 2% to 3% of the payment amount but can be higher.

Even if you have a 2% credit card like the Citi Double Cash® Card or the Wells Fargo Active Cash® Card, you likely won't earn enough in rewards to make that extra charge worth it.

Some payment services may offer fee-free rent payments with a credit card, but they're rare.

Use the Bilt Mastercard®

The Bilt Mastercard®, issued by Wells Fargo, is the only credit card currently available that allows you to pay rent to any landlord without a fee. You'll also earn 1 point per dollar on up to $100,000 in rent payments yearly.

Simply download the Bilt app, and add your landlord's information before submitting your payment. Even if your landlord is in the Bilt Rewards Alliance and only accepts checks, Bilt will send them a check in the mail.

You'll also earn 3 points per dollar on dining, 2 points per dollar on travel, and 1 point per dollar on all other purchases, and those rates are doubled on the first day of each month. Note, however, that you'll need to use the card at least five times per statement period to earn rewards. The card doesn't charge an annual fee.

Use a cash advance

Most credit cards allow you to get a cash advance, typically via an ATM or a bank teller. You can use that cash however you'd like, including rent payments.

However, it's important to understand that cash advances typically charge higher interest rates than regular card purchases. What's more, they don't qualify for the same grace period as purchases, so interest will start accruing from the transaction date.

Finally, credit cards typically charge an upfront cash advance fee, which can be 3% to 5% of the advance amount or higher. In other words, it's best to avoid cash advances entirely.

Use a balance transfer check

Some credit cards, including the Wells Fargo Reflect® Card and the Citi Simplicity® Card, offer balance transfer promotions to new cardholders, allowing you to transfer debt from another credit card and pay it down interest-free.

But even if you don't want to open a new card, your existing card issuer may offer balance transfer checks you can use for just about anything you want, often with no interest or a low interest rate.

Some card issuers may send you checks in the mail at random. Others may let you request a check through your online account or by calling the number on the back of your card. Bank of America, which offers cards like the Bank of America® Premium Rewards credit card, skips the checks altogether, offering to deposit the funds directly into your checking account.

While these promotions may come with a low or even 0% APR, there's often a balance transfer fee of 3% to 5% of the check amount.

Use a third-party service

Third-party payment services like Rent Track, PlacePay, PayPal, Venmo, and Zelle allow you to use a credit card to send rent payments to your landlord.

However, these services typically charge a transaction fee of around 3%. So, again, you're unlikely to earn enough in rewards to make it worth your while.

Does paying rent build credit?

Historically, rent payments haven't been included in consumer credit reports because there's no credit relationship like there is with a mortgage loan.

However, FICO and the credit bureaus have long had the infrastructure for landlords to report rent payments and include that payment history in your credit score. The only reason it's not a standard practice is because landlords have been slow to buy in. The majority of landlords are individuals, and reporting rent payments is an expense they may want to avoid paying.

According to a 2022 survey by TransUnion, one of the three major credit bureaus, just 27% of property managers who are aware that they can report rent payments do so.

How to get credit for your rent payments

While your landlord or property manager may not report your rent payments, some services make it possible for renters to add their rent payments to one or more of their credit reports and use them to build credit.

In December 2023, Self Financial announced that it would begin reporting rent payments to all three credit bureaus at no cost. You can also add two years' worth of previous rent payments for a one-time fee of $49.95.

Experian Boost is another free service that allows you to add rent payments, as well as utility, phone, and streaming subscription payments, but it only impacts your Experian credit report.

There are many other rent reporting services, including RentTrack, PayYourRent, and RentReporters, but you may have to pay a monthly fee or live in a participating rental property. Additionally, some rent reporting services only report to one or two of the major credit bureaus.

The bottom line

If your landlord or property manager accepts fee-free credit card payments, it can be a great way to earn rewards on one of your largest expenses. However, it's generally best to avoid using cash advances, balance transfer checks, or third-party services to pay rent due to the fees involved.

If other fee-free options aren't available to you, the Bilt Mastercard can be worth considering. Just be sure to meet the monthly transaction minimum to avoid missing out on points.

Regardless of whether or not you use a credit card to pay rent, it can make sense to sign up for a service like Self Financial to ensure that your rent payments help you establish and maintain a positive credit history.

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