How to Pay Your Mortgage With a Credit Card
Identify online providers., Find out the fee., Determine if you should pay your mortgage this way., Read online reviews., Pay your mortgage., Pay your credit card balance.
Step-by-Step Guide
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Step 1: Identify online providers.
There are many websites you can use to pay your mortgage.
You pay using a credit card, and the company cuts a check and sends it to your lender.
The more well-known providers include:
Tio.
This company was formerly known as ChargeSmart.
RadPad.
Many people use this website to pay their rent, but you can also use it to pay your mortgage.
Plastique. -
Step 2: Find out the fee.
This online service is rarely provided for free.
Instead, you will be charged a fee.
For example, RadPad currently charges
2.99% on all credit card payments.
Accordingly, if your mortgage is $1,000, then you’ll pay $29.90 as a fee.
Fees are subject to change, so always check before using the service. , Just because you can pay your mortgage this way doesn’t mean you should.
Consider why you want to use your credit card:
You are trying to earn a bonus on a rewards card.
Some rewards cards will give new users a huge number of points (35,000+) if they spend a certain amount of money during a short period of time.In this limited situation, it might be a good idea to make a mortgage payment with your credit card.
For example, your bonus might be $500, which will be more than the fee you pay to use a credit card.
You are trying to earn regular rewards.
Most cards only offer 1-2% cash back rewards.
The online service provider fee will eat up any rewards, so this is rarely a good reason to pay your mortgage with a credit card.
You are facing financial difficulties.
It’s never a good idea to use a credit card to pay a mortgage because you are struggling financially.
Instead, pursue other options with your lender. , Do thorough research before using any online service provider.
Check with your Better Business Bureau and pay attention to complaints that the company doesn't get the mortgage payment to lenders on time.
New companies crop up all the time.
You must perform thorough, independent research before entrusting a company to pay your mortgage. , Some providers require that you register with your name and email address.
Others don’t require registration.
Remember to use the right credit card to make your mortgage payment.
Check that your lender received the mortgage payment on time.
If not, follow up with the online company to find out why.
If you feel you have been scammed, report the company to your local consumer protection office. , Make full payment on the card before the grace period ends.
If you don’t, you’ll owe interest on the balance, which will further eat into any reward that you earned.
Your mortgage payment also includes interest, so you’ll be paying interest on interest—never a good financial decision. -
Step 3: Determine if you should pay your mortgage this way.
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Step 4: Read online reviews.
-
Step 5: Pay your mortgage.
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Step 6: Pay your credit card balance.
Detailed Guide
There are many websites you can use to pay your mortgage.
You pay using a credit card, and the company cuts a check and sends it to your lender.
The more well-known providers include:
Tio.
This company was formerly known as ChargeSmart.
RadPad.
Many people use this website to pay their rent, but you can also use it to pay your mortgage.
Plastique.
This online service is rarely provided for free.
Instead, you will be charged a fee.
For example, RadPad currently charges
2.99% on all credit card payments.
Accordingly, if your mortgage is $1,000, then you’ll pay $29.90 as a fee.
Fees are subject to change, so always check before using the service. , Just because you can pay your mortgage this way doesn’t mean you should.
Consider why you want to use your credit card:
You are trying to earn a bonus on a rewards card.
Some rewards cards will give new users a huge number of points (35,000+) if they spend a certain amount of money during a short period of time.In this limited situation, it might be a good idea to make a mortgage payment with your credit card.
For example, your bonus might be $500, which will be more than the fee you pay to use a credit card.
You are trying to earn regular rewards.
Most cards only offer 1-2% cash back rewards.
The online service provider fee will eat up any rewards, so this is rarely a good reason to pay your mortgage with a credit card.
You are facing financial difficulties.
It’s never a good idea to use a credit card to pay a mortgage because you are struggling financially.
Instead, pursue other options with your lender. , Do thorough research before using any online service provider.
Check with your Better Business Bureau and pay attention to complaints that the company doesn't get the mortgage payment to lenders on time.
New companies crop up all the time.
You must perform thorough, independent research before entrusting a company to pay your mortgage. , Some providers require that you register with your name and email address.
Others don’t require registration.
Remember to use the right credit card to make your mortgage payment.
Check that your lender received the mortgage payment on time.
If not, follow up with the online company to find out why.
If you feel you have been scammed, report the company to your local consumer protection office. , Make full payment on the card before the grace period ends.
If you don’t, you’ll owe interest on the balance, which will further eat into any reward that you earned.
Your mortgage payment also includes interest, so you’ll be paying interest on interest—never a good financial decision.
About the Author
Jacqueline Kennedy
Specializes in breaking down complex lifestyle topics into simple steps.
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