Using a credit card to pay a mortgage | finder.com
Using a credit card to pay a mortgage

Using a credit card to pay a mortgage

To pay your mortgage with your credit card, look into third-party bill pay.

When it comes to paying your mortgage, using a credit card can sound like a good option.

With big mortgage payments, for example, you could collect a lot of rewards points. And instead of having to spend money on your mortgage immediately, you could instead shell out the dough when your card bill arrives.

Unfortunately, most mortgage servicers don’t allow credit card payments. Furthermore, you’ll usually have to pay processing fees if you use your card.

But you do have a way to get around any restrictions: using a third-party bill pay service.

Why you should — and shouldn’t — use a credit card to pay your mortgage

If you’re able to use your credit card to pay your mortgage, you might pay processing fees of 2% to 3%. And such high fees could erase any rewards you’ll earn from credit card rewards.

That said, you’ll find situations where using your card could save you money or time.

Consider paying your mortgage with a credit card if you want to:

  • Reach a minimum spend for a signup bonus. Signup bonuses typically require spending a few thousand dollars. You can reach yours more easily by paying your mortgage with your credit card. Just make sure that processing fees don’t erase what you’d gain from your bonus.
  • Defer your mortgage payment.You can take advantage of your credit card’s grace period, during which your balance won’t accrue interest. Instead, you can use the funds for something else before your card bill is due.

Which credit card is the best for rewards?

There’s no “best” credit card — but that’s part of the fun. It means you can compare the pros and cons of many cards to find the best one for you. To get started, take a look at our list of 2017’s best credit cards.

Consider not paying your mortgage with a credit card if:

  • You’re having trouble making your mortgage payments. Putting mortgage payments on your card can lead to a mountain of debt due to snowballing interest. If you’re in a financial difficulty, your mortgage servicer may be willing to work with you to avoid foreclosure.
  • You just want a convenient payment option. Instead of paying a processing fee to use your credit card, pay your mortgage for free through your bank account. Many mortgage servicers even offer autopay.

How to pay your mortgage with a credit card

To pay your mortgage with your credit card, consider two third-party bill pay services: Tio and Amex Bluebird.

Tio

Through Tio (formerly ChargeSmart), you can pay your mortgage with a few dozen servicers. Wells Fargo, Quicken Loans, Sallie Mae, Farmers Insurance, Bank of America Home Loans and Chase Home Finance are just a few options.

To pay by credit card, through, Tio charges a processing fee equal to about 2.8% of your transaction.

American Express Bluebird

Amex Bluebird is a checking alternative through which you can pay your bills. Unfortunately, it’s not the most convenient option if you want to pay your mortgage with plastic.

The key reason is because you can’t load your Bluebird account directly with a credit card — instead, you’re limited to options like your checking account, savings account and debit card.

You can add money to Bluebird through credit card, albeit indirectly. A common method is to use plastic to purchase pin-activated Visa gift cards that work like debit cards. They cost around $5 apiece, and you can use them to load your Bluebird account and subsequently pay your mortgage.

Though you’ll have to pay for the Visa gift cards, you won’t have to pay anything to open a Bluebird account online. Paying bills through Bluebird is free too.

Compare credit cards

Rates last updated April 23rd, 2018
Name Product APR for Purchases ( Purchase Rate ) Intro APR for Balance Transfer Annual fee Product Description
Deserve® Classic Card
Deserve® Classic Card
24.24% variable
$39
Designed to help build credit history with no deposit required and access to benefits.
Luxury Card Mastercard® Titanium Card™
16.49% variable
0% Intro APR for for the first 15 billing cycles (with whichever is greater: $5 or 3% balance transfer fee)
$195
Enjoy unique excursions, privileged access to exclusive events and insider opportunities.
Indigo® Platinum Mastercard® Credit Card
23.9% variable
$75 annual fee for the first year ($0 to $99 thereafter)
With this card you get a 23.9% variable APR.
Barclaycard Ring™ Mastercard®
10.49% variable
$0
A low, variable APR on purchases, balance transfers and cash advances.
Barclaycard Arrival Plus® World Elite Mastercard®
17.24%, 21.24% or 24.24% variable
0% Intro APR for 12 months (with whichever is greater: $5 or 3% balance transfer fee)
$0 annual fee for the first year ($89 thereafter)
Enjoy 40000
bonus miles after you spend on purchases in the first 90 days — that's enough to redeem for a $400 travel statement credit toward an eligible travel purchase.
Credit One Bank® Visa® with Free Credit Score Tracking
19.15% - 25.24% Variable
$0 to $75 first year annual fee for the first year ($0 to $99 thereafter)
Get 1% cash back rewards on eligible purchases including gas, groceries, and services such as mobile phone, internet, cable and satellite TV, terms apply.
Credit One Bank® Unsecured Platinum Visa®
19.15% - 25.24% variable
$0 to $75 first year annual fee for the first year ($0 to $99 thereafter)
Give your credit a boost with credit line increase opportunities, a fee may apply.
The First Access VISA® Credit Card
29.99% variable
$75.00 for first year. After that, $48.00 annually.
Access credit even if you have poor or limited credit history.
Simmons Bank Visa® Platinum
9.50% variable
$0
The Simmons Bank Visa® Platinum Card offers multiple perks, including one of the lowest available APRs on the market.
Credit One Bank® Unsecured Visa® with Free Credit Score Tracking
19.15% - 25.24% variable
$0 to $75 first year annual fee for the first year ($0 to $99 thereafter)
Get 1% cash back rewards on eligible purchase, terms apply.
Simmons Bank Visa® Platinum Rewards
11.50% variable
$0
Excellent Credit Required - Applicants that do not have excellent credit will not be approved

Compare up to 4 providers

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US Credit Card Offers

Important Information*
Deserve® Classic Card
Deserve® Classic Card

APR

24.24
variable

Annual fee

0 For the first year
More info
Luxury Card Mastercard® Gold Card™
Luxury Card Mastercard® Gold Card™

APR

16.49
variable

Annual fee

0 For the first year
More info
The First Access VISA® Credit Card
The First Access VISA® Credit Card

APR

29.99
variable

Annual fee

75 For the first year
More info
Indigo® Platinum Mastercard® Credit Card
Indigo® Platinum Mastercard® Credit Card

APR

23.9
variable

Annual fee

75 For the first year
More info
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