How to Pay Your Mortgage With a Credit Card

How to Pay Your Mortgage With a Credit Card

Do you want to pay mortgage with credit card right now? There are a lot of things you will need to know about this topic, and you need to understand each one in order to proceed and get the job done easily and in time.

Below we will explain all the things you need to know about, and we will reveal all the specifics you should take into account. Of course, we will guide you through the process as well, and we hope you will learn all the things you need to know.

Can I Pay My Mortgage With a Credit Card?

Yes, you can pay your mortgage with a credit card. This is not a common thing. As a matter of fact, this is one of the rarest forms of payment and the one that some people don’t even consider. It is rare because of two things.

  • The first one is that many mortgage lenders will not accept payments of this kind.
  • The second thing is that the fees can be very high, which will make the whole process problematic or at least not usable for some people.

Of course, all of these things cannot be generalized. They affect most people but not all, and this is one of the things you need to keep in mind. Your specific situation may be different.

Is It Worth Paying My Mortgage With a Credit Card?

There are a few cases when you may want to pay your mortgage using a credit card. For instance, some people find this an appealing method and will want to do it. These can be powerful reasons why one would use this option. In addition, you can see that for some, it is the last resort, but it is still effective and can prevent a bigger problem easily.

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Earn Bonuses

Credit cards have two main types of bonuses, and each one is different and appealing. The first one is a sign up bonus that is common and very desirable for most people. This is a bonus reserved for new users who will get the card and start to use it.

The bonus can come in the form of free and extra miles, cashback offers, and also additional types. 

The second type is the ongoing reward. You are looking at the same bonuses, but you will get them on a regular basis as an existing user.

To get the later bonus, you will need to use your credit card. Each transaction will give you points, and the more points you collect, the better bonuses you will get. This is one of the main reasons why people will use this medium for this purpose.

Take Into Account Fees And Interest

These transactions usually come with fees and interests. These are high, so you will have to take them into account, and you will need to understand. Simply calculate how much fees you will have to pay. 

The processing fee in this particular case will be around 2.85%. But, you can also get the grace period which will last 21-25 days when making a payment of this kind. 

Don’t forget about the annual fees of savings accounts, which is around 0.7%. This may look like a great value but don’t forget about the initial fee.

Read Also: Home Depot Credit Card: What You Need to Know

Consider the Effect on the Credit Score

These payments may have a negative impact on the credit score. In addition, you will need to pay off the balance before the provider issues the statement.

This is mandatory and affects all cases where the payment is higher than 10% (depending on your bank) of the total credit utilization ratio.

However, most payments of this kind are 30% of the credit utilization ratio, and these will affect your credit score. In those cases, you need to pay off the balance before the statement is issued, as we have mentioned.

What Are the Risks of Paying a Mortgage With a Credit Card?

Using this payment method is effective and can help. But there are some risks present, and you need to know about each one before you proceed. Here we will explain each one, and we will try to keep things easier. At the same time, we must add that you should know about these before you proceed, or you can end up in trouble.

A person can miscalculate the fees. Usually, you will see a lower number and pay much more. This can be complicated and can be a huge problem for most people. Don’t forget that this is a complicated process, and you may even need professional help to sort it out.

Another risk is the fact you can fall into debt. After all, you are using a method that comes with high fees, and you can easily pay for high ones that will cause you to lose money.

The last two issues are less severe, but they do exist. You can end up with a rejected transaction. This does happen, and it is more common than you may believe. As you may know, the lenders will usually refuse these transactions. The last issue is the negative credit score which is common if you are looking at 30%+ credit utilization.

Read More: How To Remove Late Mortgage Payments

Cons of Paying a Mortgage With a Credit Card

Using this option does have a lot of advantages. But it has some cons as well. Below we will explain both, and hopefully, you will understand the complete matter better. This is more than just ideal if you want to understand the whole process and end up with the best outcome.

One of the main advantages is the fact you can end up with massive rewards. Some people have even won $2000 in rewards which can be a massive deal.

Also, you are looking at constant and great opportunities here, and you can get all sorts of additional rewards.

The next advantage is that you can avoid late payments, and you can even avoid foreclosure. This is probably one of the main advantages. Add the fact that the cash flow will be improved, and you can see that there are some reasons why you would opt for this payment.

The biggest downside is the fact high fees are common. You can see that most lenders will not accept this payment as well, which makes things more complicated and more problematic. You will have to use third parties. You can also end up with a lower credit score which is another issue you need to know about.

Hacks to Pay Your Mortgage With a Credit Card

By now, you should know that this is no easy task, and you will need to use a few options and need to perform a couple of things. But you can get help in the form of tips and the ones that are very effective. Here are a few tips that you may consider.

  • You can use third-party providers. These are usually the best options and the simplest ones. They will help you with the whole process.
  • Using a credit card as a cash advance is another tip you may want to know about. Use the ATM and deposit the money to the bank if you want to avoid third-party.
  • Using a balance transfer check is also a tip you may want to consider. This comes with the fees, which are 2%-5% for all mortgage payment options.

Using a Third-Party Credit Service to Pay Your Mortgage

It is common that the lender will not accept credit cards used for this purpose. It is even more common when it comes to monthly mortgage payments. Even if you use one of the best credit cards in the world, you will still encounter the same problem.

This comes from the lenders and not the card providers. Luckily, you can use third-party providers that can be very effective and appealing. Yes, this will help you with any mortgage lender, and it can be the only way you will get the job done.


Venmo is a payment app that is very popular these days and works in a simple way. In this particular case, you can use it to send funds from your credit card to another account. Yes, you will need to add your credit card as a payment method, and you will use it to pay out your mortgage.

You can make countless credit card payments if you like, and this method does work well across the world.

Just add the card as the payment method and send money to the desired account. You will pay the fee, as you may know already. You can use Venmo for shopping and sending money to other people, and the whole process is extremely easy. The fee here is 3%.


This method is just perfect for the purpose we are talking about. In a nutshell, Plastiq is a provider that allows people to pay using a credit card to vendors who will normally refuse a transaction of this kind. You will pay a 2.85% fee which was 2.05% a while back. This option also offers you a massive bonus. 

For instance, if you spend $4000 paying a mortgage, you will pay $114 in fees only, and you will earn 60.000 points. 

The whole process is simple. You will need to create an account, add your card as a payment method and send money to the bank. You need to have an available card balance in order to use it for all mortgage payment purposes.


RadPad is a commonly used service provider for paying out mortgages and rent. It offers a fee of 2.99%, which is one of the lowest. You don’t need to worry about credit utilization, and you can see that this provider accepts all major cards. You probably have one they support. 

You will also collect a lot of points which can be exchanged for rewards of different types. One advantage here is that RadPad operates via checks.

So, you will make an online payment using your card, and the website and the bank will get a real check in the mail. The method does work well, and it is actually more commonly used for paying rent. You can use it for paying mortgage via card, but it is the less common purpose here.

Read More: Best Mortgage Refinance Companies

Prepaid Cards

An interesting option is to use a prepaid card. You have tons of options these days. American Express Bluebird card and also Target Prepaid REDCard are just some of many, and these are popular. These cards are something you can purchase at any given moment. They will allow you to move the cash from the checking account online, and therefore the lender will accept your payment.

This is basically a simple method you use to go around the fact lender will not accept credit card transactions. American Express Bluebird is the most common method and the one we like. You can add up to $1000 per day, and you will pay a $5 fee. In addition, the method here does come with a PIN code, so it is secure and safe to use. It is an appealing way to complete mortgage payments.

Paying Your Mortgage With PayPal

A mortgage payment is something you can complete using PayPal. In some cases, you can make payments directly using the e-wallet. You will literally add your source fund account, and you will send the payments to the lender.

But some lenders will not accept these payments, and you will need to complete a series of steps in order to move around this ban. PayPal supports all major credit cards, which do make things easier when it comes to paying. You will need to follow these steps.

  • Create the account at PayPal
  • Add a method to fund the account (bank account or card in this case)
  • Send money to a friend who has PayPal account
  • They will make the payment for you


We hope that now you are ready to tackle this process. All you need to know is that this is possible and can be done. You will need to know the specifics, pros and cons, which is something we can say is mandatory for all payments and all tasks of the same kind. Take your time and understand the process completely before you proceed. You will manage!

Sources Used in Research for the Article:

  1. Accelerate your business, Plastiq,
  2. Fast, safe, social payments, Venmo,
  3. Credit Cards Key Terms, Consumer Financial Protection Bureau,


Why can't I use my credit card to pay my mortgage?

Credit cards are not accepted for this purpose, and this is the main reason why you cannot use them. The issue is in the lenders who will need a different source of income or funds from you in order to accept the payment. Luckily there is a way around it that is not complicated but can be a bit troublesome for some.

Where can I find out my credit card fees and interest for paying a mortgage with a credit card?

The first scenario is to check the general fees of your card at a bank. You can use it online or even consider the fees for that particular card. But, if you use a third-party provider, you will have to know about their fees as well. Make sure to take into account both fees.

How much bonuses can I get using my credit card to pay my mortgage?

In some cases, you are looking at 60.000 points or even more. This can be very high for most people, and it is a very appealing method due to this very reason. The more you spend, the more points you will get, and we all know that these transactions are not small.