Can I pay my mortgage with a credit card? (2024)

Credit cards can be used to pay for everything from gas and groceries to your tax bill. But can you make your mortgage payment with a credit card?

Most mortgage providers don't accept credit card payments, but there are workarounds.They usually involve fees and come with some risks.

Below, CNBC Select outlines how to make a mortgage payment using a credit card, which cards might reap the biggest rewards and how to weigh the risks against the benefits.

Lenders don't typically accept mortgage payments by credit card because they would have to pay a credit card transaction fee, which can be as high as 3.5%. You'd also be paying a secured debt with an unsecured debt, possibly with a higher interest rate.

There are ways to indirectly use your card to pay your mortgage, however.

Third-party payment platform

Some vendors will make a payment to a lender on your behalf. Plastiq, for example, charges a 2.9% fee and the funds can be sent via cash, check or bank transfer.

Plastiq will only process mortgage payments for cards on the Mastercard and Discover network, however, not Visa or American Express. Check with your issuer about any additional restrictions and to see if transactions are processed as purchases or cash advances.

Cash advance

If your card has a cash advance option, you could use it to pay your mortgage. There is typically a service fee for a cash withdrawal, however, and most card issuers start charging interest as soon as the advance posts on your account, rather than at the end of the billing cycle.

The annual percentage rate (APR) on cash advances is considerably higher than on regular purchases: The APR on regular purchases on a Capital One Venture Rewards Credit Card (see rates and fees), for example, is 19.99% to 29.99% variable (see rates and fees). The rate on cash advances, though, is 29.99%variable (see rates and fees).

A cash advance on the Venture card also comes with a service fee of 3% or $10 (whichever is greater; see rates and fees) and cash advances are not generally included in 0% APR introductory periods or rewards programs.

Balance transfer check

Some card issuers provide account holders with paper checks linked to their account that can be used to buy items, get cash or pay someone for services. Fees for these checks can range from 2% to 5% and transfer checks typically have a higher interest rate than purchases.

If you're approved for a Chase Freedom Flex℠, you may receive balance transfer checks that can be made out to your mortgage provider. The fee for a balance transfer made within 60 days of opening a Freedom Flex card is $5 or 3%, whichever is more. (After the intro period, it goes up to $5 or 5%, whichever is higher.)

In addition, Freedom Flex cardholders may qualify for a 0% intro APR on purchases and balance transfers for the first 15 months from account opening. After that, the base APR ranges from 20.49% to 29.24% variable.

Rocket Visa Signature Card

You can't pay your monthly mortgage bill with a Rocket Visa Signature Card. But, if your home loan is with Rocket Mortgage, you can put the points you earn through purchases toward your principal.

Cardholders earn 5 points for every dollar spent and points can also be redeemed as a statement credit or be put toward a down payment or closing costs on a future Rocket Mortgage loan.

There are upsides to using a card, though financial advisors suggest only doing it if you have the money to cover the payment on time and in full.

Welcome bonus or rewards

Since housing typically makes up the largest chunk of Americans' monthly expenses, charging your mortgage can help you get the most out of your card's rewards program. If you're hoping to take advantage of a welcome bonus, though, you'll have to get approved for a new card and use it within a limited window.

0% introductory APR

With the Discover it® Miles card, you can earn an unlimited 1.5x miles per dollar on every purchase. It's one of the most flexible travel cards on the market, allowing users to book flights on any airline or stay at any hotel. As a welcome bonus for new members, Discover will match all the miles you earn at the end of your first year. If your mortgage payment is $1,500 a month ($18,000 a year), you'd earn 54,000 miles, worth about $540.

The fee from Plastiq would be about $522, so you'd net a modest $18.

But the card also comes with a0% intro APRfor 15 months on purchases (17.24% to 28.24% variable APR afterward). That could give you some flexibility with making payments. Just be sure to pay off the total before the intro period expires or you'll be paying a much higher interest rate than your mortgage has.

There are fees associated with using a card to cover your mortgage payment, especially if you don't pay the balance in full by the end of the billing cycle.

Interest and transaction fees

If you carry a balance, the interest could wipe out any gain from your card's rewards program. Even if you pay in full before the end of the billing cycle, there's still the service fee from Plastiq.

The Capital One Savor Cash Rewards Credit Card comes with a $300 welcome bonus if you spend $3,000 within three months of account opening. The fee for a $1,000 mortgage payment on Plastiq would be $29 (2.9% of $1,000), leaving you with a tidy sum of $271.

The APR on purchases for the Capital One Savor card starts at 19.99%, though, so if you don't make a full payment right away you'll wind up in the red pretty quickly. In addition, the payment to Plastiq isn't eligible for Savor's top cash-back categories — which include 5% cash back on hotels booked through Capital One Travel, 4% cash back on dining and 3% cash back on groceries.

Impact on credit score and credit utilization ratio

On-time payments are the largest factor in determining your FICO credit score. So you could seriously damage your credit if you don't pay the credit card bill by the due date.

Even if you do pay it on time, your credit utilization ratio could take a temporary hit. Because issuers can be slow to reportto the credit bureaus, there tends to be a lag between yourcurrent card balanceand the balance on your credit report, according to Experian.

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