Should you pay rent with a credit card? ‘Experts weigh in


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Housing is typically one of the biggest expenses in someone’s budget, and it’s natural to wonder about the best way to pay that bill.

For renters, sometimes it’s possible to pay with a credit card. While you could earn rewards and build credit by doing so, experts say it’s typically not a smart move.

“This is a very large payment; it could rapidly spiral in terms of additional interest rate costs,” said Susan M. Wachter, a professor of real estate at The Wharton School of the University of Pennsylvania.

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Your landlord might not even agree to accept payment via a credit card, as they may be subject to paying processing fees.

They simply “may not want the hassle,” said Matt Schulz, senior credit analyst at LendingTree.

Here are three things to consider before you charge your rent payment to a credit card.

1. Processing fees chip away the rewards

2. You run the risk of accumulating interest

If you do not pay the card balance in full by the end of the statement period, you risk adding interest charges on top of your monthly rent.

“Don’t pay rent with a credit card if you’re going to be charged interest,” said Ted Rossman, an industry analyst at Bankrate.

Due to inflation, more people have been racking up and carrying debt, whether from credit cards or buy now, pay later loans. High interest rates can make some of these balances harder to pay off.

The average interest rate for all credit cards by the end of 2023 was 21.47%, the highest APR since the Federal Reserve began tracking in 1994, according to LendingTree.

3. Your credit score may dip


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