Can You Pay Your Mortgage With a Credit Card? How to Do It and the Pros and Cons

Most people pay their mortgage via ACH transfer or check, but you might consider a credit card for rewards or if money is tight.

However, most mortgage lenders don’t accept credit card payments directly due to fees and financial risk. Instead, you’ll need a workaround like a third-party service or cash advance, which often comes with high fees and interest. These extra costs can quickly outweigh any potential benefits. We’ll break down how it works and what to consider.

Table of Contents

1. How to pay your mortgage with a credit card
2. Pros and cons of paying my mortgage with a credit card
3. Should you pay your mortgage with a credit card? How to decide based on your situation
4. Alternatives to paying your mortgage with a credit card

How to pay your mortgage with a credit card

Most lenders don’t let you pay your mortgage with a credit card, so you’ll likely need an alternative method. It’s always a good idea to check with your lender first, but be prepared to use a workaround, such as:

• Third-party payment services: Platforms like Plastiq let you pay your mortgage with a credit card, but it charges fees (often 2.85%–3.5%).
• Credit card cash advance: Some credit cards allow cash advances or convenience checks, but these often come with high fees and interest rates.
• Buying a money order or gift card: Some people purchase money orders or gift cards with a credit card and use them to pay their mortgage, but many issuers block this method.

Each option has downsides—mainly high fees and potential interest charges—which we’ll cover next.

Pros and cons of paying my mortgage with a credit card

Pros

• It may help build credit

  If you don’t have a lot of credit card payments on your credit report, using it to pay your mortgage can help add more payment history if you’re careful.

• Stay afloat in lean months

  You can technically ensure your mortgage payment is made on time by paying it with your credit card, but this is a risky move that could set you back further into debt.

• Earn extra points and rewards

  If you have a good rewards credit card, you can earn a lot of points by making a large purchase, such as your mortgage payment..

Cons

• Expensive fees

  Whether you get a cash advance or use a third-party service, the fees you’ll pay (up to 3.5% with Plastiq, for example) generally outweigh the rewards you earn.

• Clunky process

  Unless you have a rare lender that allows you to pay with a credit card directly, you’ll have to go through various time-consuming services and steps.

• Higher interest rate

  Along with higher fees, credit cards have much higher interest rates, too—which can trap you in debt unless you pay off your card in full.

• Credit score damage

  Taking on a large amount of credit card debt all at once can mess with your credit utilization ratio, causing your credit score to drop.

• Spiraling credit card debt

  Even if you can pay off the debt right away, it’s tempting to let it sit, which is dangerous because you can quickly get in over your head with these large amounts.

If a lender allows you to pay the mortgage (or rent) with a credit card and you can pay off the balance each month, the benefits from the rewards could be worthwhile and a smart move.

If you’re using a credit card indirectly to pay the mortgage for a short-term span (no more than 12 months and ideally with a 0% introductory period) and have a plan to pay off the balance, then this is a better option than ending up in a precarious situation and potentially facing uncertainty about your living situation. 

Should you pay your mortgage with a credit card? How to decide based on your situation

We’ve shown that you can often pay your mortgage with a credit card and the pros and cons, but only you (or a trusted advisor) can make that call. Here’s how to apply that information to specific scenarios when you might want to use your credit card to pay your mortgage. Click on the scenario in the table below to learn more about what you should know.

Situation	Use a credit card?	What to consider
You don’t have the cash	No	Last-ditch option; worsen debt
You want to maximize reward points	Rarely	Fees often outweigh rewards
You have a new card with a signup bonus	Possibly	Only if the bonus outweighs fees and you pay it off immediately

When you don’t have the cash

If you don’t have enough money in your bank account to pay your mortgage, paying via credit card is better than becoming homeless. But it’s generally a last-ditch option. 

Most people don’t know they have many choices for getting help with their mortgage payments, almost all of which are preferable to using a credit card (more on that below).

Besides, to use your credit card to pay your mortgage, you must have enough available credit first. You’ll also need the means to pay it off in the same month to avoid getting trapped in debt.

If you’re already short on cash, it’s unlikely those two things will be the case—meaning it’s either not an option for you or a pathway to even more problems. 

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When you want to maximize your reward points

If you have a rewards credit card, it can make paying your mortgage that way tempting. At first glance, it seems smart: Make your monthly mortgage payment using a rewards card, rack up points, and then pay off the bill before interest accrues. 

But as we’ve seen, most mortgage servicers don’t allow customers to pay with a credit card. Instead, you’ll need to use a roundabout method to pay your mortgage with your credit card, such as using a third-party service like Plastiq. 

Plastiq charges a fee of up to 3.5% of your payment amount. Most flat-rate cash-back credit cards only offer 2% cash back on your purchases, meaning you’re paying an extra 1.5% out of pocket to snag more points. 

For the math to work out, you’ll need to calculate exactly how much it costs you in fees to pay your mortgage with a credit card. Then, compare that to the benefits you get in return, down to a fraction of a cent. 

When you have a new card with a signup bonus

You might come out ahead in one situation: A new credit card offers bonus points, such as airline miles if you spend a certain amount in the first 90 days after opening the account. 

This technique can be helpful when the math works in your favor. For example, if a credit card offers a $900 bonus if you spend $4,000, paying that pesky 3.5% fee is worth it if you earn a 22% return.

However, if you can’t pay off your credit card balance before interest charges accrue, you might be worse off than if you just paid your mortgage in cash—especially if it leads you to accumulate more debt.

If you’re using a credit card to pay the mortgage chronically, it would be wise to consult a financial counselor or mortgage lender to explore options to gain control of your cash flow and use of the credit cards, which may lead to making behavior changes or downsizing your home.

Alternatives to paying your mortgage with a credit card

If you’re struggling to cover your mortgage payment, contacting your lender should be your first step. Many mortgage lenders offer assistance programs that can help you avoid falling behind on payments—without resorting to costly credit card debt.

Rocket Mortgage, for example, offers a forbearance program where clients can request help by filling out an Application for Success. This allows borrowers to explain their financial situation and submit documentation. Based on the information provided, Rocket Mortgage will review available options and work with borrowers to create a plan.

Here are some alternatives to consider:

Mortgage forbearance

Forbearance allows you to temporarily reduce or pause your mortgage payments if you’re experiencing financial hardship. This can help you stay in your home while you recover financially, though you’ll eventually have to repay the missed amounts.

Rocket Mortgage is one example of a lender offering this type of agreement, but many lenders have similar programs. This is why contacting your mortgage servicer as soon as possible if you’re struggling to make payments is critical.

Loan modification

If your financial difficulties are long-term, a loan modification might be a better solution. This involves permanently changing the terms of your mortgage to make payments more affordable. Modifications may include:

• Lowering your interest rate
• Extending your loan term to reduce monthly payments
• Rolling missed payments into the loan balance

Unlike forbearance, which is temporary, loan modifications create a new, more manageable payment structure. Many lenders offer this option, but you’ll need to apply and provide financial documentation.

Mortgage refinancing

Refinancing replaces your current mortgage with a new loan that has better terms, such as:

• A lower interest rate, which can reduce monthly payments
• A longer loan term, which spreads payments over more years
• Switching to a fixed-rate mortgage for stability

Refinancing is best for borrowers who still have strong credit and income but want to improve their mortgage terms. However, it typically involves closing costs and fees, so it’s important to compare the long-term savings.

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Credit counseling

If you’re struggling with mortgage payments, a nonprofit credit counseling agency can help you explore your options. Organizations like the National Foundation for Credit Counseling (NFCC) offer:

• Free or low-cost financial guidance
• Help creating a budget and identifying assistance programs
• Assistance negotiating with lenders

A credit counselor can help you determine whether forbearance, loan modification, or another solution is best for your situation.

Personal loan

If you need short-term funding to cover your mortgage, a personal loan may be a better option than using a credit card. Benefits of personal loans include:

• Lower interest rates compared to credit cards
• Fixed monthly payments instead of revolving debt
• Fast approval and funding in some cases

However, personal loans aren’t a long-term solution. If you’re continuously struggling to make your mortgage payment, working with your lender is a better option than taking on more debt.

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The Best Personal Loans