Credit cards are versatile tools that can help you stretch budgets and enjoy savings. But what’s it like to pay your rent with a credit card? Here is how to pay your rent or mortgage with the Bilt Mastercard – and whether you should.
Why Pay Your Rent with a Credit Card?
You can use credit cards to earn rewards on almost any transaction, so why not your rent or mortgage? Paying your housing costs with a credit card is a surefire way to build your credit score. Suppose you pay your credit card bill on time each month. In that case, the regular payments can help demonstrate to lenders that you are responsible with your credit.
You can theoretically double that credit-building power by asking your landlord to report your payments to the credit bureaus. Simply ask your landlord to report your rental payments to the credit bureaus through services like RentReporters, LevelCredit, or others. That means you get double the credit reporting and double the chances for a credit boost.
Paying your rent or mortgage with a credit card can also provide flexibility and convenience. If you regularly use credit cards for other expenses, paying the rent with a credit card can help consolidate your payments and simplify your monthly budget.
The Drawbacks of Paying Rent with a Credit Card
The drawbacks of using credit cards for rent are obvious. The biggest drawback with paying your rent via credit card is that some landlords may not accept credit card payments. Many smaller landlords don’t offer online payment portals or ways that lend themselves to paying with a credit card.
Why don’t some landlords take payments from anywhere beyond a checking or savings account? Part of the problem is the access to payment portals. Another reason is that landlords don’t want to pay fees associated with online payments. The fees for processing these payments are typically around 2% to 3% of the total amount charged.
The other major concern when using a credit card to pay rent is that you risk maxing out the credit card. Suppose your monthly rent exceeds your credit limit. In that case, you may need to make multiple payments or consider using a different credit card. Additionally, if you have a high balance on your credit card, adding your monthly rent payment could push you over your credit limit, resulting in additional fees or penalties.
Does Bilt Make It Easier to Pay Rent?
The Bilt Mastercard makes paying rent a breeze if your rental property is managed by the Blackstone Group – the US’s largest real estate group. But what if Blackstone doesn’t manage your apartment? Are you out of luck?
Fortunately, the answer is, “don’t worry, you can pay rent to any landlord with Bilt.” How? If your apartment doesn’t accept credit cards or you rent outside the Bilt Rewards Alliance of landlords, simply make your payment through Bilt’s mobile app, and the company will mail a physical check to your landlord. This process ensures your rent is paid in a streamlined manner while still earning double rewards points.
Just make sure that you pay your rent through the Bilt mobile app. Paying through the app allows you to earn a single rewards point per $1 spent on rent paid, up to 50,000 annual points. Even better, paying through the app means you’ll pay no transaction fees. The Bilt Alliance typically charges a transaction fee of 3% for rent payments made through the mobile app, meaning Bilt provides even more value for no annual fee.
Here’s how paying your rent with Bilt compares to paying rent with a traditional credit card:
| Steps for paying rent with a credit card | |
|---|---|
| Traditional credit card | Bilt Mastercard |
|
1) Ask landlord Not every landlord lets tenants pay with a credit card. In fact, many landlords may be hesitant to accept credit card payments because they don't know how to accept them. And, many third-party payment platforms require landlord approval before allowing you to submit rent payments. |
1) Pay rent through the Bilt app Pay your rent as you would any other bill. through the Bilt mobile app. No matter what your management company you can pay your rent worry-free. |
|
2) Sign-up for a third-party site There are plenty of third-party payment platforms, including Venmo, PayPal, ClickPay, Cozy, and more. As mentioned, these sites may require landlord approval before payments can be made, with RadPad the only service not requiring this step. |
|
|
3) Pay rent Pay your rent with a credit card as you would any other bill. This process allows you to pay off rent over time and earn rewards points. |
|
Summing It Up
So, does using Bilt to pay your rent make life easier? The answer is an emphatic yes. Paying your rent with a credit card can provide many benefits, including building your credit score, earning rewards points or cash back, and providing flexibility and convenience. However, it’s essential to be aware of the potential difficulties, such as fees and credit limits, and to confirm with your landlord that they accept credit card payments.
Bilt sidesteps these drawbacks by streamlining rent payments to a single, straightforward step., This process bypasses the excess fees and confusing language of third-party payment platforms. But always make sure you have the funds to cover the cost of your rent before placing it on your credit card – Bilt Mastercard or otherwise.
Related Article: Citi Custom Cash vs. Citi Double Cash
