Most mortgage lenders do not accept credit card payments directly
Your mortgage servicer — the company that collects your monthly payment — typically will not let you pay with a credit card. They accept bank transfers, checks, and sometimes debit cards, but credit cards create a processing problem they want to avoid. If you try to pay online or by phone, you will see only those options listed.
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, which puts cash in your bank account, which you then transfer to your servicer as a normal bank payment. There are also payment platforms that accept credit cards and forward the money to your lender, though they charge a fee for this service.
The real question is whether you should do this. Credit card interest rates are much higher than mortgage rates, and cash advances come with their own fees and when ready interest charges. You are almost always better off using a debit card, a bank transfer, or a personal loan if you need to borrow. The only scenario where this makes sense is if you are chasing credit card rewards points and can pay off the balance when ready — and even then, the fees often erase the benefit.
Key Takeaways
- Your mortgage servicer will not accept credit card payments directly, so you must use a third-party service or move the money to your bank account first.
- A credit card cash advance puts cash in your account but charges a fee (usually 3 to 5 percent) plus interest starting when ready, making it expensive for most borrowers.
- Payment platforms like Plastiq and Square Cash accept credit cards and send the money to your lender, but they also charge a percentage fee on top of your payment.
- If you are paying your mortgage with a credit card because you are short on cash, you are taking on high-interest debt and should explore other options first, such as a forbearance request or a personal loan.
- Paying with a credit card makes sense only if you are paying the full balance when ready and the rewards points exceed the fees charged.
Using a credit card cash advance to fund your mortgage payment
A cash advance lets you withdraw money against your credit card's available balance. You can do this at an ATM, at a bank teller window, or through your card issuer's app or website. The money lands in your checking account within one to three business days, and you then transfer it to your mortgage servicer as you normally would.
The cost is significant. Most card issuers charge a cash advance fee of 3 to 5 percent of the amount withdrawn — so a $2,000 advance costs $60 to $100 just to get the money. Interest begins accruing when ready, usually at a higher rate than your regular purchase APR. There is no grace period like there is for regular purchases. If your card charges 20 percent APR on purchases, the cash advance rate might be 25 percent, and interest starts the day you withdraw the money.
This method makes sense only if you have a specific, short-term reason to use your credit card and you can pay the balance off within days. For most people facing a cash shortfall, this is the most expensive option available.
Paying through a third-party payment platform
Services like Plastiq, Square Cash, and some bill-pay platforms accept credit card payments and forward the money to your mortgage servicer on your behalf. You log in, enter your mortgage servicer's details and your payment amount, and choose to pay with your credit card. The platform charges a fee — usually 2 to 3 percent of the payment amount — and sends the money to your lender within one to three business days.
This is simpler than a cash advance because you do not have to withdraw cash and transfer it yourself. The downside is the fee. On a $1,500 mortgage payment, a 2.5 percent fee costs $37.50. If you are doing this to earn credit card rewards, the rewards have to exceed the fee to make it worthwhile. Many rewards cards earn 1 to 2 percent cash back, which would net you $15 to $30 on that $1,500 payment — less than the fee you paid.
Check your mortgage servicer's website first to see if they have a preferred payment platform listed. Some servicers partner with specific platforms and may offer reduced fees or waived fees for customers who use them. If your servicer does not list one, search for "pay mortgage with credit card" and your servicer's name to find third-party options.
Using a balance transfer to move credit card funds to your bank account
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 transfers to your own bank account, which is sometimes called a "convenience check" or a direct transfer. You receive the money in your checking account and can then pay your mortgage normally.
Balance transfers usually come with a fee of 3 to 5 percent, similar to a cash advance. The interest rate is often lower than a cash advance rate but higher than your regular purchase rate. The advantage is that some cards offer a 0 percent introductory period on balance transfers — typically 6 to 12 months — which means you can move the money without paying interest during that window. This only works if you can pay off the balance before the promotional period ends.
Ask your card issuer whether they offer balance transfers to your bank account and what the terms are. Not all cards do, and the terms vary widely by issuer and by your credit profile.
When a personal loan is a better choice than a credit card
If you are considering paying your mortgage with a credit card because you do not have the cash on hand, a personal loan is almost always cheaper. Personal loan interest rates typically range from 6 to 36 percent depending on your credit score, which is lower than most credit card rates. Personal loans also do not charge upfront fees like cash advances do, and interest does not start until you receive the money.
You can get a personal loan from a bank, credit union, or online lender. The process takes 15 to 30 minutes, and many lenders fund within one to three business days. If your credit score is good, you may may have access to for a rate well below your credit card APR. Even if your rate is higher, the lack of an upfront fee and the fixed repayment schedule make it more predictable than a credit card advance.
If you are behind on your mortgage payment, contact your servicer before borrowing. Many servicers offer forbearance programs that pause or reduce your payment for a set period, which costs you nothing upfront. This is a better first step than taking on new debt.
Rewards points and whether they justify the fees
The only scenario where paying your mortgage with a credit card makes financial sense is if you earn rewards that exceed the fees and you pay the balance in full when ready. Let's work through the math.
Suppose you pay a $2,000 mortgage with a credit card through a payment platform that charges 2.5 percent. The fee is $50. Your rewards card earns 2 percent cash back, which is $40. You lose $10 on the transaction. If your card earns 3 percent cash back on all purchases, you gain $10. The break-even point is roughly 2.5 percent rewards on a 2.5 percent fee.
This calculation only works if you pay the full $2,000 balance when your credit card bill arrives. If you carry a balance and pay interest, the interest will quickly exceed any rewards you earned. A single month of interest at 18 percent APR on $2,000 is $30 — already eating into your rewards. This method is only for people with the cash to pay when ready and the discipline to do so.
What to do if your mortgage servicer will not accept your payment method
If you are trying to pay your mortgage and your servicer is rejecting your payment method, contact them directly before trying a workaround. Call the number on your mortgage statement and explain the problem. They may be able to process a payment over the phone, set up a one-time exception, or direct you to an alternative payment method they do accept.
Some servicers accept payments through their online portal but not through third-party apps. Others accept debit cards but not credit cards. A few accept only bank transfers and checks. Knowing exactly what your servicer accepts saves you from paying unnecessary fees.
If you are having trouble making your payment at all, ask about a payment plan or forbearance before you resort to borrowing. Your servicer would rather work with you than have you fall behind.
Frequently Asked Questions
Can I pay my mortgage directly with a credit card?
No. Most mortgage servicers do not accept credit card payments directly. You can use a third-party payment platform that accepts credit cards and forwards the money to your servicer, but you will pay a fee for this service. Your servicer's website will list the payment methods they accept.
What is the cheapest way to pay my mortgage with a credit card?
A balance transfer with a 0 percent introductory period is the cheapest option if you may have access to and can pay off the balance before the rate jumps. Otherwise, a payment platform with a 2 to 2.5 percent fee is cheaper than a cash advance, which typically charges 3 to 5 percent plus when ready interest.
Will paying my mortgage with a credit card hurt my credit score?
It can. A cash advance or balance transfer increases your credit utilization ratio, which can lower your score temporarily. If you carry a balance and pay interest, the higher debt will also lower your score. Paying the balance in full when ready minimizes the damage, but it still shows as a cash advance on your credit report.
What if I cannot afford my mortgage payment at all?
Contact your mortgage servicer and ask about forbearance, a loan modification, or a payment plan. These programs pause or reduce your payment without charging you fees or interest. Borrowing on a credit card to cover a payment you cannot afford will only make your situation worse.
Do any mortgage servicers accept credit card payments?
A very small number do, but it is rare. Check your servicer's website or call them to ask. If they do accept credit cards, they may charge a fee. Most servicers accept bank transfers, checks, and debit cards instead.