Paying rent is a significant monthly expense for many individuals. While traditionally paid via check, money order, or bank transfer, using a credit card to pay rent can unlock valuable rewards, build credit, and even provide a temporary financial buffer. However, convenience comes at a cost; rent payment processors often charge fees for credit card transactions. This guide explores the best credit cards for rent payments in 2024, helping you navigate the fees and maximize your rewards.
| Credit Card | Rewards & Benefits | Key Considerations |
|---|---|---|
| Bilt Rewards Card | 1x points on rent (up to 100,000 points per year, requires 5 transactions per statement period), 2x on travel, 3x on dining, No annual fee | Requires using Bilt Rewards network; rent payment is sent directly to your landlord via check or ACH; minimum 5 transactions per statement period to earn rewards on rent. |
| Chase Sapphire Preferred® Card | 5x on travel purchased through Chase Ultimate Rewards, 3x on dining, online groceries, and select streaming services, 2x on all other travel | Annual fee; rent payment requires using a third-party payment processor; rewards may not outweigh processing fees if rent is low. |
| American Express Blue Cash Preferred® Card | 6% cash back at U.S. supermarkets (up to $6,000 spent per year, then 1%), 6% cash back on select U.S. streaming subscriptions, 3% on transit and U.S. gas stations, 1% on everything else. | Annual fee; rent payment requires using a third-party payment processor; rewards may not outweigh processing fees if rent is low. |
| Citi® Double Cash Card | 2% cash back on all purchases (1% when you buy, 1% when you pay) | Rent payment requires using a third-party payment processor; rewards may not outweigh processing fees if rent is low; no annual fee. |
| Capital One Venture X Rewards Credit Card | 10x miles on hotels and rental cars booked through Capital One Travel, 5x miles on flights booked through Capital One Travel, 2x miles on all other purchases. | High annual fee; rent payment requires using a third-party payment processor; rewards may not outweigh processing fees if rent is low. |
| Wells Fargo Active Cash® Card | 2% cash rewards on purchases | Rent payment requires using a third-party payment processor; rewards may not outweigh processing fees if rent is low; no annual fee. |
| U.S. Bank Altitude® Reserve Visa Infinite® Card | 5x points on prepaid hotels and car rentals booked directly in the Altitude Rewards Center, 3x points on eligible travel and mobile wallet purchases, 1x points on all other eligible purchases. | High annual fee; rent payment requires using a third-party payment processor; rewards may not outweigh processing fees if rent is low. Requires U.S. Bank banking relationship to maximize value. |
| Discover it® Cash Back | 5% cash back on rotating quarterly categories (up to quarterly maximum, then 1%), 1% on all other purchases. | Rotating categories may not always include relevant spending areas; rent payment requires using a third-party payment processor; rewards may not outweigh processing fees if rent is low; Discover matches all cash back earned at the end of your first year. |
Detailed Explanations
Bilt Rewards Card:
The Bilt Rewards Card is unique because it allows you to earn rewards directly on rent payments without incurring transaction fees, provided you meet the requirement of at least 5 transactions per statement period. Bilt partners with landlords to facilitate rent payments through their network. When you use the Bilt Rewards Card, Bilt pays your landlord directly via check or ACH transfer. This eliminates the need for third-party payment processors and their associated fees, making it a very attractive option if your landlord is part of the Bilt network. The card also offers bonus rewards on travel and dining, making it a well-rounded rewards card.
Chase Sapphire Preferred® Card:
The Chase Sapphire Preferred® Card is a popular travel rewards card that offers a generous sign-up bonus and ongoing rewards on travel and dining. To use this card for rent payments, you'll need to go through a third-party payment processor like Plastiq or RentPayment. These processors charge a fee, typically around 2-3%, for using a credit card. Whether the rewards outweigh the fees depends on the amount of your rent and how much you value Chase Ultimate Rewards points, which can be redeemed for travel, cash back, or gift cards. The card's travel protections and bonus categories make it a strong contender for overall spending.
American Express Blue Cash Preferred® Card:
The American Express Blue Cash Preferred® Card excels at earning cash back on everyday spending categories like groceries, streaming services, and gas. Similar to the Chase Sapphire Preferred, you'll need to use a third-party payment processor to pay rent with this card. The 6% cash back on groceries can offset some of the rent payment fees, but careful calculation is needed to determine if the overall rewards justify the cost. This card is best suited for individuals who spend heavily in the bonus categories.
Citi® Double Cash Card:
The Citi® Double Cash Card offers a straightforward 2% cash back on all purchases (1% when you buy and 1% when you pay your bill). This simplicity makes it a good option if you prefer a no-frills rewards program. As with other cards (except Bilt), you'll need to use a third-party payment processor to pay rent. The 2% cash back can help offset the processing fees, but it might not be the most lucrative option compared to cards with higher bonus categories. The absence of an annual fee makes it a low-risk choice.
Capital One Venture X Rewards Credit Card:
The Capital One Venture X Rewards Credit Card is a premium travel card with a high annual fee but also significant travel benefits, including a $300 annual travel credit and airport lounge access. The card earns 2x miles on all purchases, which can be redeemed for travel or other rewards. Using this card for rent payments requires a third-party processor, and the high annual fee means you need to carefully evaluate whether the rewards and benefits outweigh the costs, especially considering the processing fees. This card is ideal for frequent travelers who can fully utilize its perks.
Wells Fargo Active Cash® Card:
The Wells Fargo Active Cash® Card is another simple cash back card offering 2% cash rewards on purchases. Like the Citi Double Cash, this card requires a third-party payment processor for rent payments. The 2% return can mitigate some of the processing fees, and the card's lack of an annual fee makes it an accessible option for those who want a straightforward rewards program. It's a solid choice for everyday spending.
U.S. Bank Altitude® Reserve Visa Infinite® Card:
The U.S. Bank Altitude® Reserve Visa Infinite® Card focuses on travel rewards, particularly for mobile wallet and travel purchases. It features a high annual fee and requires a U.S. Bank banking relationship to fully maximize its value. Using it for rent payments necessitates a third-party payment processor. The high annual fee and processor fees mean you must meticulously assess if the travel rewards and benefits outweigh the costs associated with paying rent via credit card. It caters to frequent travelers with a strong U.S. Bank relationship.
Discover it® Cash Back:
The Discover it® Cash Back card offers 5% cash back on rotating quarterly categories. This can be a lucrative option if the quarterly categories align with your spending habits. However, since rent is unlikely to fall into these rotating categories, you'll only earn 1% cash back on rent payments made through a third-party processor. While Discover matches all cash back earned during your first year, the overall rewards on rent payments may not be significant enough to justify the processing fees.
Frequently Asked Questions
Can I directly pay my rent with a credit card?
It depends on your landlord. Some landlords accept credit card payments directly, while others require you to use a third-party payment processor or a service like Bilt.
What are third-party rent payment processors?
These are services like Plastiq or RentPayment that allow you to pay your rent with a credit card, even if your landlord doesn't directly accept credit cards. They typically charge a fee for this service.
Are there fees associated with paying rent with a credit card?
Yes, most third-party rent payment processors charge a fee, typically around 2-3% of the rent amount.
Is it worth paying rent with a credit card for the rewards?
It depends. Calculate whether the rewards you'll earn outweigh the processing fees charged by the payment processor. Consider the value of the rewards points or cash back and your spending habits.
How does paying rent with a credit card affect my credit score?
Paying rent with a credit card and making timely payments can help build your credit score. However, be mindful of your credit utilization ratio, as a high balance can negatively impact your score.
Does the Bilt Rewards Card have any fees?
The Bilt Rewards Card has no annual fee and doesn't charge transaction fees for rent payments, as long as you meet the requirement of making at least 5 transactions per statement period.
What happens if I don't meet the 5 transaction minimum with Bilt?
If you don't meet the 5 transaction minimum in a statement period, you won't earn points on your rent payment for that month. You'll still earn points on other purchases made with the card.
Can paying rent with a credit card help me meet minimum spending requirements for a sign-up bonus?
Yes, using your credit card to pay rent can help you meet the minimum spending requirements for earning a sign-up bonus, but always factor in the processing fees if applicable.
What is a good credit utilization ratio?
A good credit utilization ratio is generally considered to be below 30% of your total credit limit.
How do I redeem rewards earned from paying rent with a credit card?
Reward redemption options vary by card. Common options include cash back, statement credits, travel, gift cards, and merchandise.
Conclusion
Choosing the best credit card for rent payments requires careful consideration of processing fees, rewards programs, and your individual spending habits. The Bilt Rewards Card stands out as a top choice for those who want to earn rewards directly on rent without incurring fees, while other cards, used with third-party processors, can still be beneficial if the rewards outweigh the costs. Always calculate the potential rewards against the fees to make the most informed decision and maximize your benefits.