social security. Credit Cards offer many rewards based on use including their one-time bonuses, points, and cash back, and loyalty rewards.sing Credit Cards to pay for daily activities is a reasonable thing to do, especially with the safety of having your expenses detected with fraud and even
Still, paying rent has always been a cash/debit transaction going ways back, but one company is changing the trend. But first, Is Paying Rent with a Credit Card a Good Idea?
Why You Should Pay Rent with a Credit Card
Because you can accelerate bonuses and cash back with specific credit cards, paying rent utilizing a credit card isn’t such a bad idea. But, of course, this only applies to several qualified credit cards.
Plastiq enables people to pay rent, bills, utilities, loans, and other expenses with a credit card and charges one of the better rates out there (2.5% additional fee). On the other hand, because of this extra fee and the higher cost of rent, the percentage could add up if you do choose to use a credit card.
The Citi Double Cash Back Card could be a good option for paying rent, considering you get 1% back when you pay, and another 1% when you pay off your balance itself. Another good reason to go the Credit Card route would be a delay in your paycheck. By nature, credit cards is a balance you don’t own. Instead, the creditor owns, so as long as you pay the credit balance off, you stave off the money you technically do not possess.
Here the best credit card options when considering paying debt and rent with a credit card:
- Citi Double Cash Back
- Any Large One Time Travel Bonus (Chase Sapphire Preferred, for example)
- Discover IT
Get Those Huge One Time Bonuses!
Most credit card offers come with a major bonus after you reach a certain amount. For example, Barclaycard Arrival Plus Card offers a 70,000 Bonus when you spend $5,000 in three months. Given how rent is a huge expense, you can now get this bonus pretty quickly, and reward yourself with bonus opportunity that is worth approximately $700!
Companies like Plastiq, Venom, RentMoola are allowing you to delay your checking account, or reap large credit card bonuses at a cost. If you are awaiting a vacation within a few months, paying rent through these services could net you that European vacation you’ve always dreamed of.
Credit Card Habits to Stay Away From
Sure owning a credit card gives you the ability to purchase something before you have the money to pay for it. And while we respect responsible credit card choices like paying off your card every month, there are several bad credit habits that you should stay clear from like:
- Opening new cards without a purpose
- Not keeping tabs on your card’s balances
- Overspending when you know you won’t have the money that month
- Only paying the minimum
So…should I pay rent with a Credit Card or not?
The answer is easy: If you can pay off your credit card expenses including the new rent expense, then Yes!
If you have had issues in the past with piling expenses and debt, we certainly think you should consider other options.
Does Paying Rent with a Credit Card Hurt Scoring?
If you add a bigger expense like rent, and it takes up most, if not all of your credit balance, then there is a possibility that your credit score (rating) will be affected, no doubt. However, if you continue to pay off the rent and expenses on a consistent basis, and do not accumulate debt, you shouldn’t have to worry.
Credit Rating Increase Hack!!
Rent payments are a ton of money, and sure you can wallow in the fact that you may or may not own real estate yet, but unlike mortgage payments, rent payments are often disregarded when it comes to credit scores. One company is looking to include Rent Payments as a part of increasing your credit score!
Rent Reporters Makes Rent A Credit Based Action
Rent Reporters is a newer money hack that we love! Because, as we mentioned, rent isn’t included in one’s credit report. Rent Reporters will act on your behalf to make sure that these substantial monthly payments will be reported to Transunion so that your credit score will increase dramatically!
Who Would Benefit Using Rent Reporters?
- College Students Paying Rent Off Campus
- Those Looking to Increase Credit Score
- Those looking to Repair Their Credit
- Many More!
Rent Reporters wants to increase a renter’s credit score so much that they’ll offer a full refund if you aren’t happy!
On average they’ve seen credit scores increase by:
35-50 Points within 30 days
Rent Reporters Pricing
So you are probably asking yourself…how much would something like this cost me? Well, the pricing is straightforward: $95 for signing up and $10 per month. Think of it as an additional $10 to your rent and a one time expense that you won’t have to worry about again. This way each monthly payment will now be included in your credit report enabling you better mortgage loans, personal loans and other financings that may be important in your future.
Other Benefits of Using Rent Reporters
Not only do you get rent included in your credit scores but you’ll also receive several other nice benefits including:
- Credit Repair and Question Assistance
- Free Credit Score
- Discount for Roommates (if applicable)
- Go back 24 months of Rent Reporting
Our Experience with Rent Reporters…
We actually took a chance with the new service and we found it to be a bit hands-on at first. Initially, we had to actually speak with someone about our previous rent history. Yes, I know those millennials that hate to actually pick up the phone and call someone will be a tad disappointed there.
Otherwise, the service agent, Jayson, was able to take over correspondence with our landlord/property manager and find out our payment history and so forth.
Although I already have terrific credit scoring, the app was able to squeeze out an additional point after just a few days!
There’s at least a 1 point increase! That’s not bad at all.
How to Get Started with Rent Reporters
It’s relatively easy to get things rolling at Rent Reporters. Because many, if not most landlords choose not to report rent to credit bureaus, Rent Reporters will reach out to your landlord for you and set up the necessary actions for them to report your past payments for credit reporting. Because you do need to follow the rules to be a landlord in general, there should be no issues in getting these payments to credit bureaus in any case.