In this digital era, we often use our credit cards to pay someone, right? But still, there are a few sectors where you may not be able to pay with credit cards. Now the question is, can you pay the mortgage with credit cards?
Most landlords do not want to go through the complicated process of receiving mortgage payments through credit cards because of the high-interest rates and other factors. The interest rate is 2.85% for credit cards which are too expensive. That’s why it is not feasible for landlords to accept mortgage payments through credit cards.
However, there are actually few ways you can pay your mortgages. Among them, Plastiq cards are the most convenient way to pay your mortgages. This card is compatible with Mastercard,Visa,Discover and American Express. Other applications like Venmo,PayPal are used to pay mortgages.
In this article, I will provide you with all the ways to pay your rents or mortgages with different techniques. It is highly recommended checking out first the interest rates of the applications or third-party sites before you decide to avail the services:
3 Techniques To Pay Your Mortgages With Credit Cards:
One of the few reasons why the landlords or the lenders do not accept the rents or mortgages with credit cards is the interest rate and additional fees. They want the payment in form of cash or cheques to avoid bearing the unnecessary expenses.
Let us find out the 3 techniques you can apply to pay your landlords:
1. Plastiq Cards:
Plastiq Cards are the third-party service that help to process the mortgage payment of an individual under certain terms and conditions. The card allows the individual to pay their personal loans, business loans and mortgages with the help of their credit cards or debit cards.
In order to avail the service, it is essential for an individual to add their debit or credit cards with the plastiq account. The plastiq service will then pay your mortgages or rents on behalf of you to the lender through cheques or other convenient ways the lender is willing to accept.
In exchange for this entire service, Plastiq will charge the individual an interest rate of 2.5% for credit cards and 1% for debit cards. An individual needs to open up a plastiq account and link the credit cards and debit cards with the account.
It is also necessary for the user to add the lenders and recipients name or company. It usually takes 7 to 10 working days to process the payment through plastiq cards and they take full responsibility for any late payment.
2. Digital Ways and Apps:
There are also few digital ways and applications you can use to pay your mortgages or rents. The applications or third-party platforms like PayPal, Venmo and Radpad can be used to pay your landlords. They have different interest rates and charges which you need to make sure before availing the service.
You have to link up and associate your credit cards, debit cards and bank accounts with these applications or third-party sites. Venmo charges an interest rate of 3 percent which is very expensive compared to the other mediums. Radpad applications allow the users to pay their rents without charging any interest fees with applied terms and conditions.
PayPal is mostly used for sending and transferring money digitally. It is also a very convenient method to pay your rents or mortgages directly to the lender. Some of the lenders may not have a PayPal account or may not accept the payment through it.
For this, you have to send money to your friends or family’s PayPal account and request them to send your landlords your due amount through a cheque or a more convenient way.
3. Use Gift Cards And Money Orders:
This is another hack or technique you can use to pay your mortgages. It is a complex process but will serve your purpose of paying the rent with your credit card. In order to use this technique, you have to make an advance payment and buy a prepaid debit card to use it as a money order to pay the mortgages.
It is not possible to buy a money order or gift cards directly with your credit card. However, some gift cards which are available in the superstores or banks can be bought with your credit cards.
This process is only worth using if you have a lot of rewards points. You cannot use more than $1000 dollars as money orders, in that case, you have to use multiple money orders to pay your mortgages.
Which Credit Cards Are Compatible With Plastiq Cards?
There are different types of rents like personal rents, business rents, house of association/condominium rents and obviously mortgages. Some of the rents and mortgages can be paid with the help of Plastiq cards.
It is important to know which type of credit cards support the Plastiq Card service and the type of rents you can pay. Here a chart is given below for your better understanding:
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Some Frequently Asked Questions:
What Are The Disadvantages Of Paying Mortgages With Credit Cards?
Well, it is very expensive to pay the mortgages with credit cards, as you have to use a third-party site or applications linked with your credit cards. The medium charges a lot of interest rate and additional fees, which at times are very expensive and can pile up your debts and will certainly affect your credit score.
When Should You Consider Paying Mortgages With Credit Cards?
You can consider using the above techniques only when you have zero debts and good credit score. If you want to earn rewards or bonuses you can use your credit cards linked with the third-party sites or apps to pay your mortgages. Sometimes it is also wise to use credit cards to pay your rent to avoid any late payments, as the medium will take full responsibility for paying your mortgages.
What Are The Risks Involved Of Paying Mortgages With Credit Cards?
An individual can fall into huge debts by paying with their credit cards as the interest rates are usually very high. Your payment procedure can get blocked by your medium or the applications, if the credit card limit is exceeded resulting in a fine of additional charges. At some point, the payment procedure will affect your credit score, if you cannot maintain the terms and conditions.
Paying your mortgages or rents is only recommended if you can instantly repay the credited amount and can afford the high interest rates charged by the third-parties. This is very risky to the people who are already in huge debts.
If you have any questions and queries regarding mortgage payments, feel free to comment down below or write to us. Your valuable opinions and suggestions are always appreciated.