Is it Possible to Use My Credit Card to Pay My Mortgage?
Generally, no. Most credit card companies do not allow you to use a credit card to directly make a mortgage payment. However, there are a few ways you might be able to use a credit card to pay your mortgage indirectly. Max Cash® is here to educate you about the ins and outs of credit cards and how mortgages can be repaid.
You could use a credit card to pay your bills, and then use the money you would have used to pay those bills to pay your mortgage instead. This can be a good way to earn rewards on your credit card, but it’s important to make sure you have the money available to pay off your credit card balance in full each month, as carrying a balance will result in interest charges that can add up quickly.
Some mortgage lenders will allow you to set up automatic payments from your credit card.
In this case, the mortgage lender would charge your credit card each month for your mortgage payment. This can be a convenient way to pay your mortgage, but it’s important to be aware that you may be charged a processing fee for this service, and that you will be responsible for paying off your credit card balance in full each month to avoid interest charges.
Some credit card companies offer a feature called “bill pay” that allows you to use your credit card to pay certain bills, including your mortgage. In this case, the credit card company would send a check to your mortgage lender on your behalf. While potentially a convenience, again it’s important to know that fees charged for this service can rack up and make this option not worth it. You need to pay off your credit card balance in full each month to avoid interest charges.
While it is possible to use a credit card to pay your mortgage indirectly, it is generally not recommended, as it can be expensive due to additional fees and interest charges. If you are having difficulty paying your mortgage, it is important to reach out to your mortgage lender as soon as possible to discuss your options.
Is it a Good Idea to Pay My Mortgage with a Card?
Using a credit card to pay a mortgage may seem like an unusual or even risky financial decision, but it can actually be a smart way to manage your money and improve your credit score. Here are some things to consider if you’re wondering whether you can use a credit card to pay your mortgage:
Paying with a credit card may earn you credit card rewards or points, such as cash back. Many credit cards offer rewards or points for every dollar spent. Paying your mortgage with a credit card can help you rack up these rewards faster. Just be sure to pay off your credit card balance in full each month to avoid accruing interest charges as well as high interest credit card debt.
Credit card payments can be more flexible than mortgage payments. Most mortgage lenders only allow you to make payments on a mortgage once a month. With a credit card however, you can make multiple payments throughout the month if you need. This can be helpful if you have a fluctuating income or if you want to pay down your mortgage balance more quickly. You can make one large payment with the card and pay off the balance in installments. It can also be useful in an effort to avoid foreclosure if you have no other options.
How Can I Use a Credit Card to Pay My Monthly Mortgage Payment?
Credit card payments can improve your credit score.
Paying your mortgage with a credit card can help improve your credit score by showing that you’re using credit responsibly. Make your payments on time, as late payments can have a negative impact on your credit score.
There may be fees involved. The third-party services that allow you to pay with a credit card like Plastiq usually charge a fee themselves. This is in addition to any fees or interest from the card itself. Some mortgage lenders charge a fee for paying with a credit card as well. Check with your lender before deciding to pay your mortgage with a credit card. Credit cards also have much higher interest rates than mortgages.
Paying your mortgage with a credit card can be a smart financial decision. But only if you’re able to pay off your balance in full each month. And whether you’re able to earn rewards or points from doing so that make it worth the hassle. It is generally difficult or not allowed by many card issuers. Just be sure to consider any potential fees and the impact on your credit score before making a final decision.
Rather than using a card directly, a cash advance could be used, though this does come with several drawbacks. If you do not have the credit limit available, you may not be able to use this option. See our post on how to increase your limit here. Another problem is the high interest rates and other cash advance fees that you can incur using this method to make your mortgage payment.
Max Cash Can Find the Perfect Card for You!
Here at Max Cash, we are constantly looking for the best partners to bring you the best credit card offers available. You can choose between four different cards today and we are always adding more! You can even apply for several of the offers with no hit to your credit rating. We offer other loan products as well to help you make ends meet.
