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What’s your largest monthly expense? For many, it’s a home mortgage payment. As a result, you might try to pay your mortgage with a credit card to earn extra rewards. After all, this can be an easy way for several decades to earn bonus points. However, you must first verify that your mortgage servicer accepts credit card payments.
Why Pay Your Mortgage With a Credit Card?
Credit card mortgage payments are an easy way to earn the best credit card signup bonuses.
Your mortgage lender might let you make credit card payments directly to your mortgage. Wells Fargo, for example, doesn’t accept credit card payments. However, few banks accept credit card payments these days.
One workaround is to use a third-party payment app like Plastiq. With any credit card mortgage payment, plan on paying a processing fee. This fee is typically around 2.5% of the payment total.
However, your purchase rewards will need to be worth more than the processing fees to make paying by credit card worth it. If this may be something of interest to you, these are some of the cards you should consider first to pay your mortgage.
Chase Sapphire Preferred
The Chase Sapphire Preferred® Card has one of the most exciting bonus offers for a travel credit card. You can earn 60,000 bonus Chase Ultimate Rewards point by spending $4,000 in the first 3 months.
This bonus is worth $750 in any award travel booked on the Chase travel portal. Your points can be worth a lot more by transferring them at a 1:1 ratio to an airline or hotel partner. Some of the most exciting partners include:
- Avianca LifeMiles
- British Airways
- United Airlines
- Singapore Airlines
- Southwest Airlines
- World of Hyatt
Frequent flyer miles tend to be most valuable when redeemed for first-class award flights. Your points can easily be worth up to 6 cents when redeemed for first-class or business class seats. Emirates and Singapore Airlines have some of the best premium cabin options.
One award route to consider first is flying in the Singapore Suites class from New York to Frankfurt. One-way award space can be found for 86,000 miles plus fees and taxes.
The Sapphire Preferred also has a reasonable $95 annual fee. This card also earns 2x Ultimate Rewards on travel and dining purchases and 1 point per $1 for everything else.
Cardholders also get unlimited deliveries with $0 delivery fees and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DoorDash’s DashPass subscription service. Cardholders must activate by 12.31.2021 in order to receive this benefit. Additionally, cardholders earn 5x points on Lyft rides through March 2022.
Related: Best Chase Credit Cards for Travel
Platinum Card from American Express
The Platinum Card® from American Express has one of the highest minimum spending limits for a travel credit card. You’ll need to spend $5,000 during the first 3 months in order to earn 60,000 bonus points.
Are you ready for the good news? You might qualify for Amex Platinum’s highest-ever bonus offer of 100,000 Membership Rewards. This bonus can be worth $1,000 in award flights booked on AmexTravel. You can also transfer your points at a 1:1 ratio to these airlines:
- Delta Air Lines
- Flying Blue
- Singapore Airlines
This can be an excellent option if you want to fly overseas with credit card points. You can also book partner flights for domestic travel with most international airline loyalty programs. One example is a round-trip economy class flight to Hawaii from the U.S. West Coast on Alaska Air for 25,000 miles. You will need to transfer your Membership Rewards to Singapore Airlines first.
Qantas can be another exciting option if you have been wanting to visit Australia.
The card is best for frequent flyers. The card comes with travel perks including a $200 airline fee credit, complimentary airport lounge access, and up to $200 in annual Uber credits.
Related: Best American Express Credit Cards
Capital One Venture Rewards Credit Card
The Capital One® Venture® Rewards Credit Card is the most exciting flat-rate travel rewards credit card. Its signup bonus is relatively small yet still worth pursuing when paying your mortgage. This bonus can also be easier to earn.
You can earn 50,000 bonus Venture miles after spending $3,000 in the first 3 months. A $0 introductory annual fee for the first 12 months (then $95 each card renewal) adds extra value to this offer. The 50k bonus miles are worth $500 in travel statement credits.
Capital One also lets you transfer your points to airline partners. Two newly added hotel partners are Accor Hotels and Wyndham Rewards.
Southwest Airlines Credit Cards
If you fly Southwest Airlines often, you should strongly consider getting a Southwest Airlines Rapid Rewards credit card. Consumer cards include the Southwest Rapid Rewards® Plus Credit Card, the Southwest Rapid Rewards® Priority Credit Card, and the Southwest Rapid Rewards® Premier Credit Card.
Your signup bonus and all purchase rewards count towards the annual 125,000 points required for the Companion Pass. You only pay fees and taxes for your companion to fly with you when you have this pass.
The Southwest Credit cards signup bonus is 40,000 bonus Rapid Rewards after spending $1,000 in the first 3 months of account opening. The 40,000-point bonus can be enough for one round-trip ticket to Hawaii.
British Airways Visa Signature
The British Airways Visa Signature® Card might not appear like a utilitarian miles credit card at first glance. But Avios have flexible redemption options for domestic and international travel.
For example, domestic American Airlines and Alaska Airlines flights start at 7,500 Avios each way. You can also fly to Hawaii from the U.S. West Coast for 25,000 miles roundtrip. Of course, you can book award flights to Europe on British Airways or another Avios partner.
The current new cardmember offer is worth up to 100,000 bonus Avios. Cardholders will earn 50,000 bonus Avios after spending $3,000 on purchases within the first 3 months from account opening. Plus, they’ll earn an additional 50,000 bonus Avios after spending $20,000 on purchases within the first year of account opening.
So, you will need to spend $20,000 in total purchases during the first 12 months to earn this bonus. Your monthly mortgage payment can easily help you reach this spending requirement.
Your card purchases earn 3 Avios per $1 on purchases with British Airways, Aer Lingus, Iberia, and Level. You’ll also earn 2 Avios per $1 spent on hotel accommodations. Plus, every calendar year you make $30,000 in purchases on your British Airways Visa card, you’ll earn a Travel Together Ticket good for two years.
Using a credit card to pay your mortgage is a possibility. However, you may need to use a third-party payment app to submit payment as most lenders prefer you use a checking account to keep fees low. Using a credit card can be well worth it when you can earn a valuable signup bonus or get above-average redemption values.
Do I pay my mortgage with a credit card?
Some mortgage lenders and servicing companies let you pay your mortgage with a credit card. However, your bank might require you to make a cash advance (which doesn’t earn purchase rewards or a signup bonus) if you wish to pay your mortgage with a credit card. You also pay interest charges on cash advances.
Another option is to use a third-party payment app like Plastiq. In most cases, you will need to pay processing fees between 2.5% and 3% of the payment amount.
Can you pay mortgages with a Visa credit card?
It’s possible to pay your mortgage with a Visa credit card. However, your lender or the credit card issuing bank may not let you charge mortgage payments to your credit card. They may even consider it a cash advance that doesn’t earn rewards points and requires you to pay interest.
One of the best Visa credit cards for paying your mortgage is the Chase Sapphire Preferred. New cardmembers have the opportunity of earning a signup bonus worth $750 in award travel.
If your lender or credit card provider doesn’t let you pay directly with a credit card, you will need to use a third-party payment app. Whether you pay directly or use an external app, plan on paying a processing fee between 2.5% and 3%.
What bills can be paid with a credit card?
Almost any recurring bill can be paid by credit card including:
- Cell phone
- Streaming services
- Charitable donations
- Property taxes
- Income taxes
- Utilities (i.e., electric, gas, or water bill)
- Mortgage payments
Depending on the bill, you may be charged the processing fee. This is most common when making loan payments or paying bills to government agencies. The average processing fee is between 2.5% and 3%. Merchants are most likely to accept Visa, Mastercard, American Express, and Discover for payment.
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Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities.