How To Pay Rent with a Credit Card

Many people who possess credit find that at some point in their time renting, they may be short on cash. When push comes to shove, people genuinely want to know whether or not you can practically pay rent with your credit card. 

In short, you technically can pay rent with a credit card, but most financial experts agree that you shouldn’t if you don’t have to. Let's discuss the practical reasons for needing credit to pay rent and why it’s not always the best idea. Further, we’ll dive into decent alternatives to using credit to pay rent, like taking out a personal loan.

Reasons You Might Need to Pay Rent with a Credit Card

Although it’s not the best financial decision and one that may negatively affect your credit score, there are valid reasons one might need to pay rent with their credit card. Sometimes, the cash is simply unavailable, and you may face steep overdraft fees in your bank account if you try to pay rent with a check anyway. 

You Can’t Wait for Your Check to Get Cashed

One of the reasons you might need to pay rent with your credit card is if you’re worried about the funds in your bank account. Sometimes, when waiting for a rent check to get cashed, you have other money moving in and out of your checking account. 

If that money decreases too much before the rent check gets cashed, then you run the risk of your check bouncing. This may look like bad tenancy to your landlord or even result in the landlord’s late fees. Further, it may also affect your credit score in the long run if your bank accounts tie into your credit.

Emergencies and Unexpected Situations Arise

Another big reason many people resort to paying the rent with a credit card is that emergencies happen. You can’t expect the unexpected, and this is especially true with finances. Rent often takes up the largest portion of expenses for most individuals, and if an emergency arises, you probably aren’t going to be able to make that expense. 

Perhaps you must take a trip to the emergency room or urgent care and face a few hundred or a thousand dollars in medical bills. Or, perhaps your car gets towed, and you must pay to get it back before you can do anything else. 

These unexpected expenses can be costly, to say the least. If you can put your rent or a portion of it on your credit card to pay later, it may actually help you a lot. 

Pros and Cons of Paying Rent with a Credit Card

If you find paying the rent with your credit card necessary, you should know the advantages and disadvantages. 

Pro - Credit Card Rewards

One pro of paying rent with credit cards is that some credit cards, although rare, actually offer their customers rewards for making purchases like rent. If you are in this boat and have a great credit card, you may find that paying the rent with your credit card is a smart choice. 

Pro - Credit Card Bonuses

Another way paying the rent with a credit card could work to your advantage is if you do so specifically to claim a credit card sign-up bonus. Some credit cards offer a bonus in their introductory period that you can only claim if you spend a large amount first. 

Since rent is something you must pay regardless, using your card to make this payment is a wise choice that pays off and rewards you. 

Con - Fees

Aside from what it does to your credit score, one of the worst things about paying the rent with a credit card might be the fees you must pay. Many online rent payment services charge processing fees for using credit cards; even a small processing fee will add up when applied to the cost of monthly rent. 

For example, say you have a 2-bedroom apartment that costs $1,200 monthly for rent. Apply a 3% processing fee to that payment, and you’re looking at $36 in fees! Doing that once wouldn't be so bad if you could fit it within your credit limit. But long term, this is not a practical option.

Con - Interest

Further, even if you pay rent with your credit card and earn credit card rewards or cashback for doing so, you’ll probably have to pay interest. Interest on high-budget purchases like a rent payments can add up as well. You pay a lot more over time when combined with payment processing fees. 

Con - Effects on Credit Score

Lastly, the credit utilization ratio shows how much paying the rent with a credit card hurts your credit score. This is how much of your credit limit you have used (your balance) compared to how much your credit limit is.

Typically, using more than 60% of your credit limit at a given time isn't wise. So, if you have a $3,000 credit limit and have to use $1,800 of that for rent, you’re starting to look bad to credit bureaus.

If you want to ensure a good credit score or want to improve it, paying the rent with your credit card may not be the best idea. 

How to Pay Rent with a Credit Card

Ultimately, if you decide to pay rent with your credit card, you must know your best options. Ensure that you know what processing fees you’ll face for paying in this manner. Furthermore, ensure you are prepared to pay everything back in full to protect your credit score.

Keep Records of Interest and Fees

When you make a rent payment via credit card, make sure to keep exact records of how much you spend. You also need to record the percentage of fees you faced and the interest rate your credit card charged on the purchase. This way, when your credit card statement comes out, you'll know the extra cost you owe in interest.

Pros and Cons of Paying Your Rent with a Credit Card for Points

Paying rent with a credit card can be tempting, especially if you want to earn points or need extra flexibility with your finances. However, before making this decision, it’s crucial to consider both the benefits and drawbacks to ensure it aligns with your financial goals.

Benefits of Paying Rent with a Credit Card

• Earn points or rewards. Many credit cards offer cash back, travel points, or other perks on everyday spending. If your rent is a significant expense, charging it to a rewards card can help you accumulate points faster. However, it’s essential to compare the value of the rewards with any potential fees.
• Meet a welcome bonus requirement. If you've recently opened a new credit card with a sign-up bonus, using it for rent payments can help you meet the minimum spending threshold. This can be an effective strategy to unlock valuable rewards, especially if you don’t have enough large purchases planned.
• Emergency backup option. Using a credit card to cover rent in an emergency can provide short-term financial relief. This can be useful if you're waiting for a paycheck or dealing with unexpected expenses. However, this should only be a temporary solution, as interest charges can add up quickly if you don’t pay the balance off immediately.
• Potential credit score benefits. If used responsibly, paying rent with a credit card and making on-time payments can help build your credit history. Some rent payment platforms even report transactions to credit bureaus, which may improve your credit score over time.

Drawbacks of Paying Rent with a Credit Card

• Processing fees can wipe out points or rewards. Most landlords don’t accept direct credit card payments, so you'll likely have to use a third-party rent payment service like Plastiq, Bilt, or RentMoola. These services charge fees ranging from 2.5% to 3%, which can outweigh any rewards you earn.
• Interest charges can make rent more expensive. If you can’t pay off your credit card balance in full each month, you’ll accrue interest on your rent. Since credit card interest rates are typically high, this can make your rent significantly more expensive over time.
• Credit utilization can hurt your credit score. Your credit utilization ratio—the percentage of your available credit that you use—plays a crucial role in your credit score. If rent takes up a large portion of your credit limit, your utilization ratio will spike, potentially lowering your score.
• Limited credit line may not cover rent. If you have a low credit limit, your card may not be able to handle your full rent payment. This could force you to make multiple payments or risk maxing out your card, which can hurt your credit score and financial flexibility.

Using a credit card for rent payments can make sense in specific situations—such as earning a lucrative sign-up bonus or covering a short-term cash crunch. However, the high fees, interest risks, and potential credit score impact often outweigh the benefits. If you’re considering this strategy, make sure you can pay off your balance in full and that the rewards you earn exceed the fees you’ll incur.

What To Do If You Can’t Afford Rent: Alternatives to Using a Credit Card

If you're struggling to pay rent and considering using a credit card as a last resort, there are other options that may be more financially sustainable. Credit cards can lead to high-interest debt, so exploring these alternatives first can help you avoid long-term financial strain.

1. Negotiate a Payment Plan with Your Landlord

If you're facing short-term financial difficulties, talk to your landlord as soon as possible. Many landlords are willing to offer temporary solutions rather than risk a vacancy.

Possible Arrangements:

• Partial Payments: Pay a portion of the rent now and the rest later.
• Deferred Rent: Delay your payment for a few weeks or months if your landlord agrees.
• Reduced Rent: If you’re experiencing hardship, your landlord might be open to temporarily lowering rent.

2. Seek Rental Assistance Programs

There are government and nonprofit organizations that offer rental assistance to those in financial distress. These programs can help cover part or all of your rent if you qualify.

Where to Look:

• Local Housing Authorities – Many cities have emergency rental assistance programs.
• United Way (211.org) – Provides local resources for housing support.
• Salvation Army & Catholic Charities – Offer rental aid in many areas.
• HUD (U.S. Department of Housing and Urban Development) – Offers housing assistance and low-income rental options.

3. Borrow from Family or Friends

If you have a trusted friend or family member, a short-term loan from them might be a better option than using a credit card. Be clear about repayment terms to avoid straining relationships.

4. Apply for a Personal Loan

A personal loan from a bank or credit union may offer a lower interest rate than a credit card, especially if you have good credit. Some online lenders also provide emergency personal loans for short-term financial relief.

5. Look Into Gig Work or Side Hustles

If you need to quickly boost your income, consider short-term work to cover rent. Options include:

• Freelancing (writing, graphic design, consulting)
• Gig work (Uber, DoorDash, TaskRabbit, Rover for pet sitting)
• Selling unused items (electronics, furniture, clothes)

Even a few hundred dollars from side jobs can help cover a portion of rent and reduce financial stress.

6. Request a Salary Advance or Hardship Loan

Some employers offer salary advances or hardship loans for employees in need. Check with your HR department to see if this is an option.

7. Consider a Short-Term Roommate or Subletting

If your lease allows, renting out a spare room or subletting your space for a short period can help offset rent costs. Be sure to get permission from your landlord before subletting.

8. Use Emergency Savings (If Available)

If you have an emergency fund, rent should be a priority expense. Using savings to cover rent is a better option than accumulating credit card debt with high-interest charges.

All in all, it’s possible to pay rent with a credit card, but it isn't the best option for most people. Unless you have a great credit card with rent-payment rewards and intend on being wise with your credit card payments, paying rent this way quickly accrues fees, interest, and other baggage to your finances. 

Consider alternatives that suit your financial needs and competency, such as the short-term personal installment loan you intend to pay off quickly. Or perhaps see if you can get help from family, friends, or government assistance before resorting to paying the rent with credit.