Have you ever wished you could pay rent with plastic? Then check out three different ways to make rent payments via credit card, either for commercial or residential spaces.
When you’re low on cash, utilizing credit cards as a payment method to make rent can be a lifesaver. If done properly, you can even boost your credit score simply by paying your rent on time.
How it Works
These methods used to pay rent with a credit card are quite simple and can even be used when your landlord won’t accept anything but a check for payment.
If they accept ACH direct deposit or bank wire, then you can schedule automatic payments to be charged to your card and sent to your landlord.
If your landlord only accepts cash, then you could still add yourself as the Payee with the online payment service, then withdraw the cash from your bank account.
Lastly, you even try your best to convince your landlord to use a rent payment service, so you can just swipe your card every month.
Get cash rewards and a $50k limit!
Divvy credit limits are determined by spending ability, not credit scores. Small business owners that can prove steady monthly revenues can apply for a Divvy corporate visa card.
No personal guarantee is required! All cardholders can also earn up to 7x reward points on hotels and 5x on restaurant purchases.
Credit Score Boost
Before we get into specific methods of paying your rent with credit cards, do note that the same methods can be used to boost your credit score.
Some rent payment services will also report your transactions to major credit bureaus, and if pay your credit card bill on time, that also will be reported positively.
If you’re looking to increase your credit score quickly, this double boost will do just that. If you simply take a credit card cash advance and pay it off quickly, that too can help boost your score.
Online Payment Services
From homes to commercial locations, you can use online payment services to pay your rent on time. Providers like CardUp, Plastiq, or LandlordStation allow you to use your credit card for payments, while your landlord receives your rent via check, wire, or direct deposit.
Transaction Fees
The catch-22 to using one of these online payment services is that they charge a transaction fee of 2.5-3.0% on top of your rent payment. If you’re able to collect rewards points on your credit card, you can offset some of the extra cost.
CardUp
CardUp currently offers the cheapest transaction fees at 2.6% but has even a better intro offer at 1.79% for both business and personal rent payments. To take advantage of this special deal, you have to enter a coupon code of SAVERENT179 or BIZ17, when setting up your payment.
Need help getting a fast loan?
Do you need startup financing, working capital for your business, funding for equipment or real estate? Would you like to get approval in as little as 48 – 72 hours, and your funds released within days?
Various lending products ranging are available for most business owners, including those with limited history or bad credit.
Plastiq
Another option is to pay your rent online is Plastiq, which has a standard transaction fee of 2.85% for all credit cards.
Landlord Station
A third option to use a credit card for paying rent is to have ask your landlord sign up to LandlordStation. Another selling point making sure tenants pay their rent on time, is that this company can also process application fees, HOA dues, and other items for your landlord.
Rent Payment Services
A rent payment service requires cooperation from your landlord since they would need to set up an account that will allow them to accept credit card payments.
A little convincing may be required to get your landlord on board, so you might want to become very knowledgeable about their options before proposing a specific rent payment service to them.
Some providers to look into include LetUs, PayYourRent, RentTrak, and Venmo, along with the online payment providers mentioned above in CardUp and Platiq.
Landlord Tips
When trying to convince your landlord to use a rent payment service, always make sure you note the benefits they would receive, rather than what would benefit you.
- Scheduling credit card payments on specific dates can ensure rent gets paid on time
- Figuring out whose rent is up-to-date is much easier with electronic payment tracking
- Easier payment methods for tenants might generate better on-time payment compliance
- No checks to cash or doors to knock on when they bounce
You might also throw in the fact that numerous real estate management companies use these types of payment systems since they’re easier, faster, and more reliable than checks.
Cash Advance
This last option is generally only good in a pinch, as the interest rates associated with cash advances on credit cards are steep. On top of that, there usually will be a transaction fee of 3-4% to make a cash withdrawal. If you can qualify for a payday loan, it will probably be cheaper.
With 0% Interest
You can avoid paying interest, as well as extend the time required to pay back your cash advance by utilizing a 0% intro APR balance transfer. This process requires having two credit cards:
- The first card should have a high cash advance limit that is enough to cover your rent. It should also come with low transaction fees of 3% or less on withdrawals.
- The second card should either come with 0% APR convenience checks or 0% intro APR balance transfers.
For the cash advance used to pay your rent, you’ll then have 9-15 months of 0% interest to fully pay it off via low monthly payments on your card.
Bottom Line
The easiest method to pay your rent with a credit card is to use an online payment service. If your landlord likes direct deposits, then it’s as simple as inputting their deposit info. If they prefer checks then one will be mailed out to them.
If you’re able to convince your landlord to accept credit cards using a rent payment service, then it could be as easy as swiping your card or setting up an automatic payment.
If you’re in a pinch, then a cash advance might be worth looking into. This is best done via a 0% balance transfer offer, so you can turn credit into cash without paying interest.
Tax refund up to $26k per employee!
Through the Employee Retention Tax Credit, the IRS grants eligible employers a credit equal to 70% of qualifying wages per W2 employee, PER quarter.
If your business experienced a significant decline in gross receipts or was impacted by government shutdowns due to COVID-19, then let us help you solve the IRS’s refund application puzzle. You can prequalify today, just by answering 8 simple Yes or No questions.