Paying Mortgage with a Credit Card Guide

If you need more time to gather the cash, using a credit card to pay your mortgage can help you avoid late penalties. However, it’s not as easy as just entering your card number and enabling autopay. If you use a credit card to pay your mortgage, there may be additional fees you have to pay for processing.

Can You Pay Your Mortgage with a Credit Card?

Yes, it is possible to use a credit card to make mortgage payments. However, usually you will need to use a service from another company or get a cash advance. Many financial institutions do not allow credit card payments directly. This means you cannot simply provide your credit card number and set up automatic mortgage payments with them. Instead, you usually have to use a third-party service to make your payment, which may require paying extra fees. But sometimes, you can pay your mortgage with a credit card without having to pay extra fees.

How to Pay Your Mortgage with a Credit Card?

Use Plastiq

If you want to pay your mortgage with a credit card, the easiest way is to use Plastiq. Plastiq is a service that lets you use a credit card to pay different bills, like your mortgage. Plastiq charges a fee of 2.9% when you use a debit or credit card. However, when it comes to mortgage payments, they only accept Discover and specific types of Mastercard. Paying with added fees will make it a little more costly than paying directly from your bank account.

Get a Cash Advance

A cash advance is when you take out money from your credit card by using your credit limit. A payday loan is a type of loan that provides you with cash for a short period of time. You can use this money for any purpose, such as paying your mortgage. Some credit cards don’t allow cash advances, so you should contact the provider to see what is allowed. In addition, certain cards have high fees for cash advances and a high annual percentage rate (APR), which can make this method costly over time.

Use Venmo

Venmo is a well-liked choice for using a credit card to pay your mortgage. To get a cash advance using Venmo, all you need to do is enter your card details and send a Venmo payment to yourself. Venmo charges a 3% fee for sending money. Keep in mind that some cards may also have a high cash advance fee, so be cautious when using them. When using this technique, it is often suggested to use American Express because they do not charge any fees for cash advances. This means that the only cost you will incur is the expense of using Venmo.

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Convert Gift Cards to Money Orders

If you want to use a credit card to pay your mortgage without incurring fees, the best option is to buy gift cards and then exchange them for money orders. This method may be a little more difficult, but it will help you avoid paying extra fees. First, you need to go to a store that sells gift cards. Purchase enough gift cards to cover your mortgage payment using your credit card. If the available denominations are limited, you might need to purchase a large quantity at once.

Some gift cards may have activation and inactivity fees. It’s important to do some research to find the best type of gift card for your situation. If you are careful with your calculations, you can often pay less than the usual transaction fee when using a third-party provider like Venmo or Plastiq.

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