CNN underscored Financial products like credit cards and bank accounts are reviewed based on their overall value, but not all financial companies or all available financial offers. We may receive compensation for sending traffic to partner sites, e.g. CreditCards.com, And this compensation may affect how and where the links appear on this site.
The biggest monthly expense for many families is rent. The average fare in the United States is about $ 1,200 per month, so using a credit card to pay your rent could theoretically get a nice refund of money per month or a nice portion of the travel reward.
Unfortunately, you can’t usually swipe your credit card to pay your rent, at least without charging a fee that offsets the most if not all of the value of any of the rewards you earn. But there are actually a few ways to pay your rent using your credit card that are understandable – one of these methods doesn’t even charge a fee, other options have a fee that can pay off in some situations.
So put your checkbook aside and consider whether you should pay your rent using your credit card to win prizes using one of these four methods.
Built MasterCard is a relatively new no-annual-fee credit card with a major focus এটি it is designed as a way to pay rent free of charge. In fact, it is currently the only credit card that allows tenants to pay for their largest monthly expenses for free and still win prizes. After all, any landlord can be paid with a built-in MasterCard, even if they don’t accept a credit card – and without a fee.
The built-in card was originally brought back in June, but the company recently announced several changes to the way its cardholders earn rewards. You will earn 3 points per dollar for dining (including food delivery service), 2 points per dollar for travel when booked directly with an airline, hotel, car rental or cruise company and 1 point per dollar for all other purchases, paying rent per year. Up to 50,000.
Even better, for the first 30 days that you are a cardholder, you will earn 2 points for every dollar spent in the non-bonus category, which is double the normal amount. This is basically a card sign-up bonus, as it does not have a common big welcome bonus for new card holders.
A big precaution of the built-in card is that you must have at least five transactions in each statement in order to win any prize. So if you are looking for primarily Use this card to pay your rent, you also need to swipe it at least a few times throughout the month for additional purchases.
When it comes to redeeming built points (called built rewards), the easiest option is to use them towards your own rent – the value of 1 built point is about 0.55 cents when redeemed. It may not be like a ton, but if you pay $ 1,200 rent per month, it adds about $ 80 to your pocket every year.
Or, if you are planning to buy a home of your own in the future, you can hang on to your built points for now and use them for down payment when you are ready to purchase. You could potentially get a lot more value for your built-in points – up to 1.5 cents per point.
However, if you want to use your points now and you are willing to do a little extra work, you can transfer your points to nine built-in airlines and hotel partners, including American Airlines, Air Canada, Air France / KLM, Emirates, Turkish Airlines, Hawaiian Airlines, Virgin Atlantic Flying Club and hotel chains IHG and Hyatt. All of these travel partners have a 1 to 1 ratio of built-in point transfers, meaning you transfer for every 1,000 built-in points, you get 1,000 points or miles in the airline or hotel program.
Once you’ve transferred points to a travel companion, you’ll need to book your flight or hotel using that partner’s reward system, which means finding available prize locations and being as flexible as possible with your travel dates. But that means you can get a larger size value for your points, since it’s not uncommon to get a price discount of 1.5 to 1.7 cents per point, and sometimes even more.
The built-in MasterCard offers several other attractive benefits, such as cell phone insurance, purchase protection, rental car insurance, trip cancellation and delay coverage, Lyft Credit up to $ 60 per year, Dordash Credit and MasterCard World Elite Concern up to $ 120 per year. Services.
Also, the company has its own elite status program, based on the amount of points you earn in your calendar year based on your status level. There are four built-in elite status levels, the benefits of which you can access at each level, and the number of points you need to earn within a calendar year to gain status.
Of particular interest is the opportunity to actually earn interest on your built point. For those who hold silver, gold or platinum elite status, Bilt will pay interest in the form of points on a member’s built-in reward account using their average daily point balance and National Deposit Rate for savings for 30 days per month. Published by FDIC. You can learn more about this and other status benefits directly on the Bilt Rewards site.
There is currently a waiting list for getting a built-in card, but applicants using the code EABILT921 can skip the waiting list and apply immediately. Go to biltrewards.com/waitlist and enter your email and contact information to join the waitlist, then use the code when you are prompted for the initial access code. Note that this code is limited to the first 100 applicants who use it, so if you want a built-in card now, you need to transfer quickly.
Plastic is an online bill payment site that allows you to make payments using a credit card to a variety of merchants who do not normally accept cards, such as rent. Although plastic is one of the least expensive bill payment options, unfortunately it’s not free – and with a standard fee of 2.85%, it’s often not worth it.
The only reason to use this service is if you’re getting more than 2.85% of the rewards you earn using a credit card, or if you’re trying to meet the minimum spending requirement to earn a big sign – a bonus up on a recently opened card.
Related: These credit cards are now offering the best limited time bonuses.
For example, one of our favorite travel credit cards for newcomers is the Chase Sapphire Preferred Card, which currently has a record-high 100,000-point bonus offer for new cardholders. However, to earn that bonus, you’ll need to spend $ 4,000 on the card within the first three months after opening the account.
Suppose you typically spend about 9 950 a month on your credit card – three months later, you will spend a total of $ 2,850 on your daily purchases. But if your rent is $ 1,200, you can also pay a month’s rent through plastic which can make a total of $ 4,000. Although you will spend $ 34 to pay that amount, the 100,000 points you earn from the sign-up bonus will be at least 2 1,250 for the trip.
Related: 7 great ways to travel for free with 100,000 bonus points of Chase Sapphire.
There are instances where it may be understandable to use plastic on a card you already have. The Discover ET Miles card earns 1.5% cash on everything you buy, but your card doubles your prize at the end of the first year. This means you are earning 3% cash on all purchases, including rent paid through plastic – 0.15% profit from the fee you pay. Again, this doesn’t sound like much, but in a year it can add hundreds of dollars depending on your rent.
Or consider our benchmark credit card, Citi® Double Cash Card. It earns 2% cash on everything you buy – 1% when you make a purchase and another 1% when you pay for it. Although much less than the fee you would pay to use plastic, there is a way to increase the value of your reward.
If you also have a City Premier: card, you can convert your double cash prize into a City Thank You point and then transfer it to any of City’s 16 airline partners. And when you redeem Citi Points like this, you can get a lot more value than them with just cash. In fact, the frequent flyer website The Points Guy offers City Thank You Point at 1.7 cents, which means you can effectively earn a 3.4% return on your rental purchases when using the City Double Cash Card – a decent amount at a rate of 2.85% plastic fee. .
If you pay your landlord using Venmo, you can use a credit card, but you will pay a significant fee.
Venmo is a popular fee-free app for sending money to friends, and many landlords already accept rent payments through Venmo. But Venmo also has the option of using a credit or debit card, instead of sending money from your bank account. The bad news is that Venmo charges a 3% fee for using a credit card, making it a more expensive option than plastic.
However, there are actually no fees for using debit cards at Venmo, and although most debit cards do not offer much in the way of rewards, there are some who earn a small amount of cash, such as Delta Skymiles World Debit Card to Suntrust Bank and Discover Cashback Debit Card. .
So if you have a debit card, this is the perfect opportunity to visit your rewards program to see if you can earn something in return for paying your rent with the card.
This may seem like an obvious option, but some apartment buildings or complexes run by large management companies allow you to pay your monthly rent directly using a credit card. However, it is important to check if your landlord charges a fee for this service. If there is no fee, you are doing business, but if there is a fee, you will want to calculate whether the reward you receive using the card is worth more than your charge.
Also, since “rent” is not a common bonus category on most credit cards, you may want to use a card that generates higher returns on daily purchases. This makes credit cards such as City Double Cash, Chase Freedom Unlimited and Capital One-Venture-Rewards credit cards your best option.
Find out which cards CNN Underscore has chosen as ours The best credit card of 2021.
Get all the latest personal money deals, news and advice on CNN Underscored Money.