Most landlords do not accept credit cards directly, but you have workarounds
You cannot usually hand your landlord a credit card and pay rent the way you would at a store. Most landlords accept checks, bank transfers, or money orders — not credit cards. The reason is straightforward: credit card payments cost the landlord a processing fee of 2 to 3 percent, which they would rather not pay. Some larger property management companies have started accepting credit cards through their online portals, but this is still uncommon.
If you want to use a credit card to pay rent, you have three realistic options: use a payment service that accepts credit cards and sends money to your landlord, take a cash advance from your credit card and pay with that cash or a check, or use a balance transfer to move money into your checking account. Each option has different costs and consequences for your credit score.
Key Takeaways
- Direct credit card payments to landlords are rare because landlords do not want to pay the processing fees that come with them.
- Third-party payment services like Plastiq or Venmo can send money from your credit card to your landlord, but they charge a fee of 1 to 3 percent.
- A credit card cash advance lets you withdraw money to pay rent, but you pay an upfront fee and a higher interest rate than regular purchases.
- Paying rent with a credit card builds your credit history only if the payment is reported to credit bureaus, which most rent payments are not.
- Using a credit card for rent should be temporary — it costs more than paying with a bank account and can damage your credit if the balance grows.
How third-party payment services work
Services like Plastiq, Venmo, and Square Cash let you send money from a credit card to almost anyone, including your landlord. You enter your landlord's bank details or mailing address, the service processes the payment from your credit card, and the money reaches your landlord as a bank transfer or check. The transaction usually takes one to three business days.
The cost is a percentage fee charged by the service. Plastiq charges around 2.5 percent for credit card payments. Venmo charges no fee if you transfer to a bank account, but charges 1 percent if you use a credit card. Square Cash charges 1.5 percent for credit card transfers. On a $1,500 rent payment, a 2.5 percent fee adds $37.50 to your cost. This fee is separate from any interest your credit card charges you.
These services work best if you have a short-term cash flow problem — you know you will have money in your bank account next week but need to pay rent today. They are not a long-term solution because the fees add up quickly, and you are paying interest on a credit card balance while waiting to pay it off.
Credit card cash advances and their real cost
A cash advance is when you withdraw money directly from your credit card at an ATM or bank. You get the cash when ready and can pay your landlord however they prefer. But cash advances are expensive in ways that regular credit card purchases are not.
Most credit cards charge an upfront fee of 3 to 5 percent just to take the advance out. On a $1,500 advance, that is $45 to $75 before you even use the money. Then the interest rate on the cash advance is usually higher than the rate on regular purchases — often 2 to 3 percentage points higher. If your card charges 18 percent on purchases, the cash advance rate might be 21 percent. Interest starts accruing when ready, with no grace period like you get on regular purchases.
If you take a $1,500 cash advance at a 5 percent fee and 21 percent interest, and you pay it back over three months, you will pay roughly $110 in fees and interest combined. That is significantly more than using a payment service, and much more than paying from your bank account.
Balance transfers and moving money to your checking account
A balance transfer is different from a cash advance. Instead of withdrawing cash, you transfer a balance from your credit card to another account — usually a bank account you control. Some credit cards offer balance transfers to bank accounts at a fixed fee, typically 3 to 5 percent. Once the money is in your checking account, you can pay rent however your landlord prefers.
Balance transfers are sometimes cheaper than cash advances because the interest rate is often lower and there is no daily interest accrual in the same way. However, you still pay the upfront transfer fee, and you are still carrying a credit card balance that costs you money. This option makes sense only if you can pay off the balance quickly — within a month or two.
Some credit cards do not offer balance transfers to bank accounts at all, so check your card's terms before you assume this is available to you. Call the number on the back of your card and ask whether your card supports balance transfers and what the fee is.
How paying rent with a credit card affects your credit score
Paying rent with a credit card does not automatically build your credit history the way paying with a bank account might. Most landlords do not report rent payments to the three credit bureaus (Equifax, Experian, and TransUnion), so your on-time rent payments do not show up on your credit report. This means paying rent with a credit card gives you no credit-building benefit.
However, using a credit card to pay rent can hurt your credit score in two ways. First, it increases your credit utilization ratio — the percentage of your available credit you are using. If you have a $5,000 credit limit and you charge $1,500 in rent, your utilization jumps to 30 percent. High utilization (above 30 percent) lowers your score. Second, if you cannot pay off the balance quickly, you carry a balance month to month, which costs you interest and signals to lenders that you are relying on credit to cover regular expenses.
If you are trying to build credit or improve a low score, paying rent with a credit card is counterproductive. You are better off using a service that reports rent payments to credit bureaus — some newer services like Esusu and RentBureau do this — or focusing on other ways to build credit, like keeping old accounts open and paying other bills on time.
When paying rent with a credit card makes sense
Paying rent with a credit card is reasonable only in specific situations. If you have a temporary cash flow gap — your paycheck is delayed by a week but rent is due today — and you can pay off the credit card balance within a few days, the fee from a payment service is worth the convenience. If you are earning credit card rewards and your card offers a high cash-back rate on all purchases, the rewards might offset some of the payment service fee, though this is rare for rent.
Paying rent with a credit card is not reasonable if you cannot pay off the balance when ready. Carrying a credit card balance to cover rent is a sign that your expenses exceed your income, and using credit to bridge the gap will only make the problem worse. The interest and fees will compound, and you will end up paying significantly more than the original rent amount.
If you are in a situation where you cannot pay rent from your bank account, consider other options first: asking your landlord for a payment plan, looking into emergency rental information programs in your area, or cutting other expenses to free up cash. These options cost you nothing and do not damage your credit.
Landlords who do accept credit cards
Some property management companies and larger landlords have started accepting credit cards through their online rent payment portals. If your landlord uses a service like AppFolio, Rent Manager, or Buildium, you may see a credit card option when you log in to pay. However, these services often pass the processing fee to you — you might pay an extra 2 to 3 percent to use a credit card instead of a bank transfer.
Before you use a credit card through your landlord's portal, ask whether a fee applies. If it does, you are paying the same cost as using a third-party service like Plastiq, so there is no advantage. If no fee applies, using your landlord's portal is simpler than using a third-party service because you do not have to enter your landlord's bank details or trust another company with the transaction.
Frequently Asked Questions
Does paying rent with a credit card help build my credit?
Not usually. Most landlords do not report rent payments to credit bureaus, so on-time rent payments do not appear on your credit report. Using a credit card to pay rent can actually hurt your score by increasing your credit utilization ratio. Some newer services report rent payments to bureaus, but this is uncommon.
What is the cheapest way to pay rent with a credit card?
Using a payment service like Venmo (1 percent fee) is cheaper than a cash advance (3 to 5 percent fee plus higher interest). However, the cheapest way to pay rent is still from your bank account, which costs nothing. If you must use a credit card, a payment service is your best option.
Can I use a credit card to pay rent if my landlord does not accept them?
Yes. You can use a payment service to send money from your credit card to your landlord's bank account, or you can take a cash advance and pay with cash or a check. Both options cost you a fee, but they work even if your landlord does not accept credit cards directly.
Will paying rent with a credit card hurt my credit score?
It can. Charging a large rent payment increases your credit utilization ratio, which lowers your score. If you carry the balance and pay interest, it signals financial stress to lenders. The damage is temporary if you pay off the balance quickly, but it can be significant if the balance stays high.
What should I do if I cannot afford to pay rent?
Do not rely on a credit card. Contact your landlord and explain the situation — many will work out a payment plan. Look into emergency rental information programs through your city or county housing authority. If you are behind on rent, some programs will pay your landlord directly to prevent eviction.