Thinking about paying your mortgage with a credit card? Learn the pros, cons, and safe ways to do it without hurting your credit or wasting money.
Can You Really Pay a Mortgage with a Credit Card?
It’s a smart question — especially if you’re looking to earn rewards, get cash back, or just bridge your finances for the month. The short answer is: it’s possible, but not directly — and it comes with a few catches you need to understand first.
Most mortgage lenders don’t accept credit card payments because of the high transaction fees. However, there are a few workarounds that can technically make it happen.
Let’s break it down so you can make the smartest choice for your money.
Option 1: Use a Third-Party Payment Service
Platforms like Plastiq or PayPal Bill Pay let you pay bills — including your mortgage — using a credit card. Here’s how it works:
- You pay the service using your card.
- The service then sends a check or bank transfer to your lender.
Sounds convenient, right? But here’s the catch:
- You’ll pay a service fee (usually around 2.5–3%).
- Some credit card issuers count this as a cash advance, which comes with higher interest rates and no rewards.
So unless you’re earning more in points than the fee costs you, this option might not make financial sense.
Option 2: Transfer the Balance to a 0% APR Credit Card
If you’re tight on cash for a few months, some people consider balance transfer offers that come with a 0% APR for 12–18 months. The idea is to:
- Use your card to cover certain expenses.
- Free up cash in your bank account to pay your mortgage.
This can work temporarily, but it’s not a long-term fix. The main risks:
- You’ll pay a 3–5% transfer fee.
- The 0% rate ends after the promo period, and then interest skyrockets.
- If you miss a payment, you could lose the promotional rate immediately.
So, this option should be used carefully — more as a financial bridge than a habit.
Option 3: Earn Credit Card Rewards (the Smart Way)
Many homeowners wonder if they can earn travel miles, cashback, or points by paying their mortgage with a card. Technically yes — through third-party platforms like Plastiq — but again, you’ll need to do the math.
Let’s say your mortgage is $2,000/month:
- 2% cashback = $40 rewards.
- Plastiq fee = $60 (3% fee).
You’d actually lose $20 per month. So, rewards rarely outweigh the fee unless you’re meeting a welcome bonus requirement (like “spend $4,000 in 3 months to get 80,000 points”). In that case, it can be worth it once, but not monthly.
Option 4: Using a Cash Advance — Don’t Do It
Some banks allow you to withdraw cash from your credit card and use it for anything — including mortgage payments. This is called a cash advance, and it’s one of the worst moves you can make financially.
Why?
- You’ll pay immediate interest, usually around 25% or more.
- There’s no grace period.
- Most cards charge an additional 5% fee right away.
It’s an expensive and risky option that can hurt your credit score if you can’t pay it off quickly.
Why Most Lenders Don’t Allow Credit Card Payments
Mortgage companies generally don’t accept direct credit card payments. It’s not because they want to make life harder — it’s because credit card transactions come with high processing fees (often 2%–3%).
That might not sound like much, but on a $2,000 mortgage payment, that’s $40–$60 gone in fees each month — and that adds up fast.
Let’s say your mortgage is $2,000 a month.
- A 2.85% fee = $57 per payment.
That’s nearly $700 a year in fees — just for using your card.
Before even considering it, use a mortgage calculator (like Mortgio.com) to estimate your actual payment and budget comfortably.
When you see how much those fees can impact your total cost, you’ll realize that convenience isn’t always worth the price.
The Smart Alternative
Instead of trying to pay your mortgage with a credit card, focus on:
- Making biweekly payments (reduces total interest over time).
- Refinancing when rates drop.
- Using a mortgage payoff calculator on Mortgio.com to create a custom payoff plan that fits your budget.
Those strategies help you save thousands in interest — without adding risk or extra fees.
Final Thoughts
Yes, technically, you can pay your mortgage with a credit card. But unless you’re doing it for a short-term, specific reason (like earning rewards or bridging cash flow), it’s usually not smart financially.
Use your credit cards for flexibility — not for debt stacking.
If you want to pay off your mortgage faster instead, visit Mortgio.com and use the free calculator to see how much time (and money) you can save.