Mortgage payments are one of the largest monthly bills for most homeowners. If you’re interested in maximizing your credit card rewards, you may be looking for ways to pay your mortgage with a credit card. While most mortgage companies don’t accept credit cards, there are ways to use your credit card to make your payment. In this article, you’ll learn how to make mortgage payments with a credit card and the pros and cons of doing so.
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Bank of America® Travel Rewards credit card
On Bank of America’s secure website
Welcome bonus
25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening – that can be a $250 statement credit toward travel purchases.
25,000 points
Annual fee
$0
Regular APR
19.24% – 29.24% Variable APR on purchases and balance transfers
Credit score
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
(700 – 749) Good, Excellent
Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees and your points don’t expire as long as your account remains open.
Editor’s take
Pros
- 15 billing cycles of intro APR financing on both new purchases and on qualifying balance transfers.
- Earn an unlimited 1.5 points per $1 on purchases.
- No foreign transaction fees so it’s a good choice to use abroad.
Cons
- Points must be redeemed towards eligible travel and dining purchases for maximum redemption value.
- You can’t transfer rewards to airline or hotel partners.
Applicants seeking a travel credit card with a solid flat rewards rate and a lengthy intro APR period will appreciate this card.
Card details
- Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees and your points don’t expire as long as your account remains open.
- 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening – that can be a $250 statement credit toward travel purchases.
- Use your card to book your trip how and where you want – you’re not limited to specific websites with blackout dates or restrictions.
- Redeem points for a statement credit to pay for travel or dining purchases, such as flights, hotel stays, car and vacation rentals, baggage fees, and also at restaurants including takeout.
- 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 19.24% – 29.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
- If you’re a Bank of America Preferred Rewards® member, you can earn 25%-75% more points on every purchase. That means instead of earning an unlimited 1.5 points for every $1, you could earn 1.87-2.62 points for every $1 you spend on purchases.
- Contactless Cards – The security of a chip card, with the convenience of a tap.
- This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
Can I pay my mortgage with a credit card?
Mortgage companies generally do not allow borrowers to make mortgage payments with a credit card. Credit card processing fees typically run 1.3% to 3.5% of the transaction amount, and mortgage companies don’t want to absorb those fees. Additionally, there’s the possibility of a chargeback if the cardholder disputes the transaction which is not a risk that the mortgage company wants to take.
Yet there are ways to pay your mortgage with a credit card. Third-party companies and alternative payment methods enable homeowners to use their credit cards to pay their monthly mortgage payments. However, these companies typically charge fees higher than the rewards you can earn, so it may not be a wise choice if you’re looking to earn extra rewards.
How to pay your mortgage with your credit card
Even with the additional fees and extra steps involved, you may decide that paying your mortgage with a credit card is a good idea. Here are a few ways to use your credit card to pay your monthly mortgage payments.
1. Third-party services
Third-party services accept credit card payments, then send money to the mortgage companies electronically or a paper check through the mail. Companies like Plastiq charge the cardholder a fee of about 3% of the transaction amount to cover their costs.
2. Buy prepaid gift cards
Some mortgage companies accept debit card payments from borrowers. If your mortgage company accepts debit cards, you may be able to use your credit card to buy a prepaid Visa, Mastercard, American Express or Discover gift card to make those payments. Prepaid gift cards typically charge fees of approximately $5 to $10 each. These fees can offset the value of rewards, especially if you need to buy multiple cards to make your payment.
Prepaid gift cards generally max out at $500 or $1,000, so they may not be enough to make your mortgage payment with one card. For those with larger mortgage payments, contact your mortgage company to verify that they allow split payments from multiple cards before pursuing this strategy.
3. Purchase money orders
Another option is to use your credit card to buy prepaid gift cards that can be used to buy money orders. Money orders act like personal checks when making mortgage payments. However, many retailers have stopped accepting prepaid gift cards for money orders due to the potential for fraud. If money orders are an option for you, factor in the costs—in time and money—of this extra step. Retailers typically charge about $1 for each $500 money order.
Should you pay your mortgage with a credit card?
Making mortgage payments with a credit card is a solid option if you earn enough rewards to offset the costs. Additionally, this strategy offers people extra time to earn the money to make their payments since credit cards typically offer at least a 21-day grace period. However, the additional costs and risks to your credit score may not be worthwhile for many homeowners.
Pros and cons of paying your mortgage with a credit card
Pros:
- Earn rewards and new card welcome bonuses.
- Provides extra time to pay off your mortgage payment.
- Avoids cash advance fees and higher interest rates.
Cons:
- Fees may be more than the rewards earned.
- Not all credit cards are eligible to make mortgage payments.
- Mortgage payments on a card could increase utilization and lower your credit score.
Things to think about if you use your credit card
Before attempting to make a mortgage payment with a credit card, consider all factors, not just the possibility of earning rewards. Rewards credit cards typically earn miles, points or cash back of 2% or less of the transaction amount. Yet, third-party fees typically cost around 3% of the payment, so you lose money on every transaction.
Paying your mortgage payment with a credit card can also affect your credit score. Mortgage payments are a large monthly expense, and they can eat up a big portion of your credit limit. As your credit utilization increases, your credit score tends to decrease. While this can be a good option in an emergency, it isn’t a wise long-term strategy.
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Ad Blueprint receives compensation from our partners for featured offers, which impacts how and where the placement is displayed.
Citi Custom Cash® Card
BLUEPRINT RATING
Our ratings are based on specific use cases for each card. We compared this card to others in the same category and developed our rankings based on this criteria, along with our editorial input. Note that although we chose this card as the best in its category, the right card for you will depend on your own financial circ*mstances.
On Citi’s secure website
BLUEPRINT RATING
Our ratings are based on specific use cases for each card. We compared this card to others in the same category and developed our rankings based on this criteria, along with our editorial input. Note that although we chose this card as the best in its category, the right card for you will depend on your own financial circ*mstances.
Welcome bonus
Earn $200 in cash back after you spend $1500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® points, which can be redeemed for $200 cash back.
$200 cash back
Annual fee
$0
Regular APR
19.24% – 29.24% (Variable)
Credit score
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
Fair, Good, Excellent
5% cash back on up to $500 in purchases in your top eligible spend category each billing cycle. All other purchases will earn 1% cash back. Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2025.
Editor’s take
Pros
- No annual fees.
- Easy-to-redeem cash-back rewards.
- Introductory APR period.
Cons
- Charges foreign transaction fees.
- There’s a balance transfer fee.
- Limited cash-back reward categories.
The Citi Custom Cash Card is an ideal choice for those who spend a lot in at least one or more of the bonus spending categories offered on the card, which includes restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs and live entertainment.
Card details
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- 0% Intro APR on balance transfers and purchases for 15 months. After that, the variable APR will be 19.24% – 29.24%, based on your creditworthiness.
- Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases. Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2025.
- No rotating bonus categories to sign up for – as your spending changes each billing cycle, your earn adjusts automatically when you spend in any of the eligible categories.
- No Annual Fee
- Citi will only issue one Citi Custom Cash® Card account per person.
Frequently asked questions (FAQs)
Yes, it is possible to pay your mortgage with a credit card. While most mortgage companies do not allow you to charge your card directly, there are third-party services that enable credit card payments.
Credit card processors typically charge 1.3% to 3.5% on every transaction. Mortgage companies do not want to absorb these costs and cut into their profits. Additionally, cardholders can dispute credit card charges, which would prevent the mortgage company from collecting money from disputed payments.
Yes, it is possible to use a debit card to make mortgage payments. However, not all mortgage companies accept debit card payments. Contact your mortgage company to ask if it accepts debit card payments for your mortgage.
