Is it worth paying your rent or mortgage on a credit card?

A few months ago, LaQuecia Clemons and her husband were looking for ways to earn the most points on their credit cards. After researching, they decided to give Bilt a try
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The Bilt Mastercard is a unique residential credit card designed to help you earn rewards for paying your rent. Later this year, according to Message to members On its website, Bilt will also offer points on your mortgage payments. Another residential credit card, the recently launched Mesa Homeowners Visa® Signature Preferred Credit Card, also allows homeowners to earn credit card points for mortgage payments, though its terms and conditions are a bit more ambiguous.

Clemons, a 35-year-old financial therapist Freedom and life therapy Based in Connecticut, she now uses the Belt Card to pay monthly rent, electricity, cell phone, car insurance premiums and streaming subscriptions. She and her husband put about $2,500 a month on the Belt card, collecting a bonus of reward points in the process.

Since housing is the largest expenditure for most American households, it may make sense to use a credit card for big spending or ongoing spending like rent or spending. Mortgage loan Payments. But is using a housing credit card worth the risk? Let’s take a closer look.

Is it a good idea to pay for housing with a credit card?

Paying for anything with a credit card, including housing, can be beneficial, but it always depends on your budget and spending patterns. If you’re experiencing financial hardship due to a recent job loss or have outstanding medical bills, you don’t want interest accumulating on your housing expenses and putting you even further into the red.

However, if you’re confident that you can use the card conscientiously — meaning you can cover the balance promptly when it’s due each month — then using a credit card can be a good way to rack up points.

Clemons, for example, pays its balance weekly. A portion of each weekly paycheck goes directly to credit card payments, and they never accrue interest. Because her cards are paid in full each month, she can earn points without being hit with expensive fees or interest charges.

“I can collect enough points to take the money out of paying the rent,” she said. Although this may be just a few extra dollars each month, the extra money can be allocated to something, like coffee on your way to work.

Bo Wyrick, a 38-year-old wealth advisor Morton Wealth He resides in California and has been using the Bilt card to pay his rent for the past few years.

“Having points for rent is a game changer, so I recommend the Belt Card for this,” Wyrick said. Wirick gets the best redemption value by transferring and redeeming points through Bilt’s travel partners, which can be used on flights, car rentals, hotels and activities.

What are the risks of paying for housing with a credit card?

The downside of paying for housing with a credit card is accumulating more debt if you don’t have the money to cover your balance each month. It’s often safer to pay for housing the traditional way, i.e. by transferring funds via ACH from your bank account, writing a check or via money order.

It is also important to check with your landlord or property manager about fees. Although the Bilt and Mesa cards do not have annual fees (and the Bilt Card does not have a transaction fee for rental payments), your landlord may charge a processing fee if you pay with a credit card.

One way to avoid this with Belt is choice BeltProtectwhich allows you to pay rent and earn points without tapping your credit limit. Using this feature, funds are withdrawn directly from your linked bank account. If you choose not to use this feature, your rent will be charged directly to your Bilt Mastercard just like any other charges on your credit card.

Do residential credit cards have requirements?

Credit cards that specialize in paying housing costs do not have unique requirements. To be eligible for the Bilt Mastercard, you must be at least 18 years old and a resident of the United States or its territories. Technically, there is no minimum credit score to get approved, but a good to excellent score (670 to 850) is recommended.

To earn points on your Belt card, you’ll need to make at least five transactions per billing cycle. To make sure you never miss this limit, try setting your Bilt Card as the default method for ongoing expenses.

For the Mesa card, anyone with an eligible device (iPhone only) can join the waitlist directly, according to a company representative. Once you are invited to apply, you will be asked to provide additional information to make a credit decision on your application, similar to other unsecured consumer credit cards.

What can you earn with a housing credit card?

Belt MasterCard

Belt Offers 1x point per dollar on rentalup to 100,000 points per year. To earn points, you’ll need to use the card at least five times each monthly statement period. You earn higher points when you spend on travel and restaurants. As a Bilt Cardholder, you can get special privileges at partner restaurants, fitness studios and ride-sharing apps.

You can transfer points through Bilt travel portal And get additional points when booking travel through the portal.

Besides improving your credit score if you make monthly payments on time, Belt has the added feature of allowing you to choose to report your rental payments to the three credit bureaus, which can also Boost your score.

Mesa Homeowners Visa Signature Preferred Credit Card

Currently, you’ll need to join a waitlist to sign up for the Mesa Visa card, which is only available at the Apple Store.

Mesa credit card has Various rewards Rates are based on your purchase: 1x point per dollar on monthly mortgage payment; 2 points on daily necessities (such as groceries and gas); 3x points on home-related transactions, such as utilities, maintenance, decor, and home improvement projects; And 1x point on everything else.

You can also take advantage of other perks, like Sam’s Club membership and credits with Mesa partners like Thumbtack and Wag! Points earned can be redeemed for statement credit, gift cards, travel and mortgage payments.

What protections are available with Belt or Mesa?

Sharing sensitive information with another party can always pose risks, so it’s important to keep your account information secure.

Bilt and Mesa credit cards come with standard zero liability protection to help ensure your sensitive personal and financial data is safe from fraudulent activity. Since Bilt is a Mastercard co-branded with Wells Fargo, it comes with 24/7 identity theft protection.

“You’ll want to make sure they have safeguards in place to transfer your payment information to your landlord, property manager or mortgage company,” said Jovan Johnson, CFP co-founder and co-founder. A piece of wealth planning. “Look for other card features like fraud alerts or virtual card numbers, which can add an extra layer of protection.”

Are residential credit cards worth all the hype?

Each credit card has specific perks and rewards, so it’s a good idea to research the pros and cons before applying. Belt is more established and should expand its reach soon. The scope of Mesa’s application is still somewhat limited, so it’s worth doing more research into the terms and conditions.

Financial experts say you should only use a credit card when you’re able to pay your statement in full and avoid carrying a balance. Otherwise, it is easy to fall into debt due to high interest charges.

“Credit card programs are designed to motivate you to spend more money,” Wyrick said. “As long as you can keep yourself from falling into bad habits, do it.”
*All information about the Bilt Mastercard and Mesa Homeowners Visa Signature Preferred Credit Card was independently collected by CNET and has not been reviewed by the issuer.