Most mortgage lenders will not accept credit card payments directly, but you have workarounds
Your mortgage servicer — the company that collects your monthly payment — almost never takes credit cards. They accept checks, bank transfers, and sometimes online bill pay, but not Visa or Mastercard. The reason is straightforward: credit card processing fees eat into their margin, and mortgage payments are too large for those fees to make sense.
That said, you can move money from a credit card to your mortgage account through a third party. The most common route is a cash advance or a balance transfer to your checking account, then a regular bank transfer to your servicer. A second route is a payment service like Plastiq or Square Cash that accepts credit cards and sends the money to your lender. Both routes cost you money and carry real risks — so you should understand what you are paying and why you might want to do this in the first place.
Key Takeaways
- Your mortgage servicer does not take credit card payments directly, but you can use a third-party payment service or move money from your card to your bank account first.
- A credit card cash advance to pay your mortgage costs a cash advance fee (usually 3 to 5 percent) plus interest that starts accruing when ready, with no grace period.
- Payment services like Plastiq charge a percentage fee (usually 2 to 3 percent) to send credit card money to your lender, and the payment takes several business days.
- Using a credit card to pay your mortgage should be a last resort for a single missed payment, not a regular strategy, because the fees and interest will cost more than the mortgage payment itself over time.
- If you are behind on your mortgage, contact your servicer about a loan modification or forbearance before you use a credit card, because those programs are free and designed for exactly this situation.
How a cash advance works and what it costs
A cash advance lets you withdraw money from your credit card's credit line as if it were an ATM. You go to an ATM, call your card issuer, or use their app to request the cash, and the money lands in your checking account within one to three business days. From there, you can transfer it to your mortgage servicer like any other bank payment.
The cost is steep. Most card issuers charge a cash advance fee of 3 to 5 percent of the amount you withdraw — so a $2,000 advance costs $60 to $100 just to get the money. On top of that, interest starts accruing the day you take the advance, with no grace period like you get on purchases. The interest rate on cash advances is usually higher than your purchase rate, often 2 to 3 percentage points above it. If your purchase APR is 18 percent, your cash advance APR might be 21 percent.
For a $2,000 mortgage payment covered by cash advance: you pay $60 to $100 upfront, then interest of roughly $35 per month if you carry the balance. That is $95 to $135 in costs for a single payment. If you are doing this monthly, you are paying $1,140 to $1,620 per year just to move money from one account to another.
Using a payment service to send credit card money to your lender
Services like Plastiq, Square Cash, and some bill pay platforms let you link a credit card and send money to almost any recipient, including your mortgage servicer. You enter your servicer's mailing address or account details, choose your credit card as the funding source, and the service sends a check or electronic transfer on your behalf.
The fee is usually 2 to 3 percent of the payment amount. For a $2,000 mortgage payment, that is $40 to $60 per transaction. Unlike a cash advance, you do not pay interest — you are just paying a processing fee. The trade-off is timing: the payment takes 3 to 7 business days to reach your servicer, so you need to plan ahead and cannot use this for a payment that is due tomorrow.
Check your servicer's website or call them before you use a payment service. Some servicers do not accept third-party payments, or they require you to register the payment service in advance. If your servicer rejects the payment, you are out the fee and still owe the mortgage.
Balance transfers as an alternative
A balance transfer moves money from one credit card to another, or from a credit card to a bank account. Some card issuers offer balance transfer checks that you can deposit into your checking account, then transfer to your mortgage servicer. This is technically possible but rarely worth it.
Balance transfer fees are usually 3 to 5 percent, the same as a cash advance fee. The interest rate on a balance transfer is often lower than a cash advance rate, but it still accrues from day one. You are paying nearly the same cost as a cash advance with no real advantage unless your card offers a 0 percent balance transfer promotion — and those promotions almost never explore to transfers to your own bank account, only to transfers between credit cards.
When paying your mortgage with a credit card makes sense
The only scenario where this makes financial sense is a single missed payment that you can pay back when ready. If your mortgage payment is due in three days and you are short $2,000, and you know you will have the money in two weeks, then a payment service fee of $40 to $60 is cheaper than a late fee (usually $100 to $300) plus damage to your credit report.
Even then, contact your servicer first. Many will give you a few extra days without penalty if you call and explain the situation. Some offer loan modification programs that lower your payment permanently, or forbearance that pauses payments for a set period. Both are free and designed for exactly this situation. A forbearance can buy you 3 to 12 months without a payment, which costs nothing and does not show up on your credit report the same way a late payment does.
If you are regularly short on your mortgage payment, a credit card is not the solution. That is a sign you need to talk to your servicer about a modification, refinance to a lower rate, or explore whether you can sell the home. Using a credit card monthly will cost you thousands per year and will not solve the underlying problem.
How credit card payments affect your credit score
Using a credit card to pay your mortgage does not directly hurt your credit score — the mortgage payment still shows up as on-time to the credit bureaus. What does hurt is the credit card balance itself. When you take a cash advance or use a payment service, your credit card balance goes up, which raises your credit utilization ratio (the percentage of your available credit you are using). High utilization can lower your score by 10 to 50 points, depending on how high it goes.
If you are already carrying a balance on the card, the utilization hit is worse. If you max out the card to pay the mortgage, your score can drop significantly. The damage is temporary — your score recovers as you pay down the balance — but it can affect your ability to borrow for other things in the short term.
Better alternatives if you are struggling with your mortgage
If you are behind on your mortgage or worried about making a payment, contact your servicer before you use a credit card. Ask about these programs by name:
- Loan modification: Permanent change to your loan terms (lower rate, longer term, or both) that reduces your monthly payment. Takes 30 to 90 days to process and is free.
- Forbearance: Temporary pause on payments, usually 3 to 12 months. You resume payments after the forbearance ends, sometimes with a lump sum catch-up payment. Free and does not require you to prove hardship in writing the way a modification does.
- Refinance: If you have equity and your credit is decent, refinancing to a lower rate or longer term can lower your payment. Costs $2,000 to $5,000 in closing costs but can save thousands per year.
- HUD counseling: Free nonprofit counseling through the Department of Housing and Urban Development. A counselor can review your situation and tell you which option makes sense. Find a counselor at HUD.gov or call 1-800-569-4287.
All of these are free or cheaper than using a credit card repeatedly. If you are in financial hardship, your servicer is required by law to work with you — they would rather modify your loan than foreclose.
Frequently Asked Questions
What happens if my mortgage servicer rejects a credit card payment?
Most servicers do not accept credit cards at all, so rejection is the default. If you use a payment service and the servicer rejects it, the payment bounces back and you lose the processing fee. Call your servicer before you try a payment service to confirm they accept third-party payments.
Can I use a rewards credit card to pay my mortgage and earn points?
Technically yes, but the rewards do not cover the cost. A 2 percent cash back card on a $2,000 payment earns you $40, but a payment service fee is also $40 to $60. You break even or lose money. A cash advance earns no rewards at all and costs 3 to 5 percent plus interest.
Will paying my mortgage with a credit card hurt my credit score?
Not directly — the mortgage payment still reports as on-time. But the credit card balance goes up, which raises your utilization ratio and can lower your score by 10 to 50 points temporarily. The damage recovers as you pay down the card balance.
How long does it take for a payment service to send money to my mortgage servicer?
Usually 3 to 7 business days. Some services offer expedited delivery for an extra fee. Never use a payment service for a payment due in the next two days — the timing will not work and you will miss the due date.
Is there a way to pay my mortgage with a credit card without a fee?
No. Your servicer does not take credit cards directly, and any third party that moves money from a credit card to your servicer charges a fee. The only way to avoid the fee is to pay from your bank account directly.