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Using a credit card to pay rent

It’s that time again — your rent payment is due. Instead of paying by cash or cheque, is there any way to pay rent with a credit card?

The answer is yes – paying by credit card can be much more convenient than sending a cheque to your landlord or meeting up with them in person to hand over cash that you might not have. While paying your rent with a credit card can be a convenient option, it’ll probably come with some extra fees.

SimplyCash™ Preferred Card from American Express

SimplyCash™ Preferred Card from American Express

19.99 % APR

Purchase interest rate

SimplyCash™ Preferred Card from American Express

Apply today and receive up to 5% or $300 cashback in the first 6 months of card membership.

  • Purchase interest rate: 19.99%
  • Cash advance rate: 22.99%
  • Balance transfer intro rate: 1.99% for the first 6 months
  • Regular balance transfer rate: 22.99%
  • Annual fee: $99
  • Credit rating: Good, Excellent
  • Minimum age: Age of majority in province/territory of residence.
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Compare cash back credit cards

Name Product Welcome Offer Purchase Interest Rate Cash Advance Rate Annual Fee
Earn up to 5% or $300 cashback in your first six months.
19.99%
22.99%
$99
Offers 1.99% balance transfer rate in the first 6 months. No balance transfer fee upon application.
Earn up to 2.5% or $150 cashback in your first 3 months.
19.99%
22.99%
$0
Offers 1.99% balance transfer rate in the first 6 months. No balance transfer fee upon application.
Get 10% cash back on purchases with min. spend of $2,000 in the first three months. Ends 30 June 2019.

19.99%
22.99%
$0 annual fee for the first year ($99 thereafter)
Enjoy a $0 annual fee for the first year.
7.99% introductory interest rate on all spend for the first six months. Ends 30 June 2019.
7.99% intro APR for the first 6 months, 19.99% thereafter
22.99%
$0
Get 1% cash back on payments made at gas stations, grocery stores and pharmacies, including recurring payments.
Offers a 7.99% introductory interest rate on all spend for the first 6 months. Ends 30 June 2019.
7.99% intro APR for the first 6 months, 19.99% thereafter
22.99%
$0
Receive 1% cash back on payments made at petrol stations, supermarkets, pharmacies and recurring bill payments.
Offers a 2.99% introductory balance transfer rate for the first 6 months. Ends 30 June 2019.
19.99%
22.99%
$39
2% cash back on eligible gas stations, grocery and drug store purchases including recurring payments. T&C's apply.
Get 1.95% interest rate on balance transfers for the first six months. Valid within the first 30 days of account opening.
19.95%
19.95%
$0
Earn 4% Money-Back Rewards in three categories of your choice such as groceries, dining, petrol and more. Ends 31 July 2019.
Waived annual fee for the first year of membership. Ends 30 June 2019.
19.99%
22.99%
$0 annual fee for the first year ($79 thereafter)
Get up to 5% in GM Earnings upon initial spend of $10,000 in the first year and 2% subsequently.
No available introductory offer.
17.99%
17.99%
$0
Get up to 5% in GM Earnings on your initial spend of $5,000 in the first year.

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Cost of using a credit card to pay rent

Paying rent by cash or cheque has one big advantage: While you might have to walk it over to your building’s office or mail it to your landlord, you won’t have to pay any big fees. Using a credit card to pay rent will cost you extra.

  • If you use a rent pay service, you’ll likely be looking at credit card fees of 1% to 2.5%.
  • If your landlord directly accepts credit cards, banks typically charge them a 2% to 3% fee for each transaction – which they’ll likely pass on to you.

So if your rent is $1,000 and you pay with a credit card, you could pay an additional fee of $10 to $30, sometimes more.

How to pay rent with a credit card

Most landlords won’t let you pay rent with plastic — they’ll insist on cheques, cash in hand or direct deposits. Ask your landlord if they accept credit card payments. If your landlord doesn’t take credit cards, you still have options.

You can use your credit card with an online rent pay service, which collects your payment and directly deposits the money into your landlords account on your behalf.

Though your credit card payment to the rent pay service is instant, it generally takes two to seven days for your landlord to receive a direct deposit or a physical cheque in the mail.

Here’s an example of possible fees from a couple of popular rent pay services.

ServiceCredit card feeCredit cards accepted
Plastiq2.5%Visa, Mastercard, Amex
RentMoola0.99 – 2.99%Visa, Mastercard, Amex

How to pay your landlord through a rent pay service

While it can vary between services, you’ll usually need to:

  1. Sign up for an online account with the rent pay service of your choice.
  2. Initiate a new payment.
  3. Add your landlord’s name and address.
  4. Add your payment info and submit your payment.

When you should — and shouldn’t — pay rent with a credit card

For most people, paying rent with a credit card is not worth the expense. Weigh the pros and cons to decide for yourself.

Consider paying rent with your credit card if…

  • You’re trying to meet your credit card’s minimum spend requirement for a signup bonus. Many signup bonuses require you to spend a minimum amount of money within a specified number of months. Since rent is a significant expense that you have to pay anyway, using a card can get you closer to meeting that minimum. Just make sure that your card’s fees don’t eat up what you’ll earn as a signup bonus, whether that’s cash back, points or miles.
  • It’s extremely inconvenient to pay with methods currently available. Maybe your landlord accepts mailed cheques only, and the closest post office is several miles away. Paying your rent with a credit card might make sense if it’s much more convenient — even if you have to pay a fee.
  • Your credit card offers rewards that outweigh your fees. If the rewards you earn from using your credit card to pay rent are greater than the fee charged by your landlord or the rent pay service, then this could be a good option for you.
  • You’re looking to improve your credit score and don’t mind the extra fees. If you’re trying to increase your credit score and you know you can pay off your rent – and any other credit card expenses – in full each month, then paying your rent with your card could be a good idea.

Avoid paying rent with your credit card if…

  • You’re just trying to kick the can down the road. You can defer your rent payment by putting it on your credit card – but next month, the same payment will be due like clockwork. If you’re having trouble paying your rent, contact your landlord. They may be willing to work with you to make rent payments more manageable.
  • It’s not much more convenient than paying through existing methods. On a rent payment of a few hundred or thousand dollars, a 3% fee can significantly increase your rent costs.
  • You’re keeping an eye on your credit score. Putting a big charge on your credit card will raise your credit utilization ratio, which could put a dent in your credit score. If you’re looking to open a line of credit soon — such as a mortgage, car loan or another credit card — it may be wise to avoid taking on more debt right now.
  • You’ll have trouble keeping up with credit card payments. It’s never a good idea to rack up a lot of debt on your credit card. If you plan on paying only the minimum toward your balance each month, consider avoiding a credit card rent payment. You stand to quickly accumulate interest that could throw you into an endless cycle of debt.

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