Get a free, no obligation personal loan quote with rates as low as 6.99%
Get Started You can apply with no effect to your credit score

For most people rent is one of, if not the most important bill that needs to be paid each month. If you don’t own a house or condo then you probably pay to rent your home and the monthly payment process may sometimes seem a little bit tedious. But the good news is that as payment technology grows and evolves there are new ways for landlords to receive payment from their renters.

Payment Methods

Cheques and cash are the most common ways to pay for rent but in recent years landlords have been able to start accepting electronic payments. This is a great option because electronic payments are often automatic which means that you don’t have to remember to drop off your rent on the first of each month. Electronic payments typically happen through a fund transfer between your bank account and the bank account of your landlord, but what about paying for your rent with a credit card? 

Can You Pay Your Rent With Your Credit Card? 

In most cases, landlords won’t accept credit cards as a method of payment for rent. They usually prefer cheques, direct deposits or even cash. While your landlord may not accept credit cards as a method of payment there are third-party apps and rent pay services that allow you to use your credit card to pay rent. These services work by collecting your credit card payment and then depositing it in your landlord’s account for you. Your landlord will then receive the payment within 2 – 7 business days. However, do be aware that these services usually come with a fee.

Here are a few services in Canada that you can use to pay your rent with your credit card. 

 FeeTypes of Credit Card
RentMoola0.99 – 3.99%Visa, Mastercard, Amex, Union Pay
Plastiq1%-2.85%Visa, Mastercard, Amex, Discover, Diners club 
Get Digs1% Visa

Benefits of Using Your Credit Card to Pay Rent 

Earn Rewards

One potential benefit of paying your rent with a credit card is earning a significant amount of reward points. Rent is typically a large sum of money, so charging it to your credit card could be a type of investment for you. It’s possible for you to earn cash back from your credit card company and essentially lower your monthly rent cost. Or if your reward system gives you points that you can then use to buy specific items, you could then buy gifts and save your own cash for other expenses.

While this is in theory a great benefit it’s important that you figure out if the rewards you’ll earn outweigh the fees that will be associated with charging your rent to your credit card.

Building a Credit Score

If you’re struggling to build a credit score from the ground up then charging your rent to your credit card might be a good option for you. But, if you can’t afford to pay your rent with cash or a cheque then charging it to your credit card will have the opposite effect you’re looking for and could potentially hurt your credit score for years to come. 

Furthermore, you need to consider the fees when making your decision. If you’re desperate to improve your credit score then paying the fees might be worth it. On the other hand, if you’re only looking to improve an already good credit score, paying the fees probably isn’t worth it for you.

Dangers of Using Your Credit Card to Pay Rent

Hidden Fees or Extra Costs

It’s important that you ask about the type and amount of fees before you choose to use your credit card. There is also the possibility that your building’s management uses a third party system to accept credit card payments, in this situation the fees might be even higher. Depending on the size of these fees the convenience of paying your rent with a credit card might not be worth it.

Can you Pay off one credit card with another

Added Debt

Aside from understanding any extra costs involved with paying your credit card, you should also beware of maxing out your credit card as rent can be a big expense. If you’re unable to pay your credit card in full, it can lead to high-interest costs. Moreover, your rent can affect your credit utilization ratio which can also negatively affect your credit score. While the rewards of paying with your credit card can be tempting, you shouldn’t be putting your rent on it if you can’t afford it. 

When is it Good to Use Your Credit Card For Rent? 

You had an unexpected expense – Life is unpredictable and can sometimes leave us strapped for cash due to unexpected events like a medical emergency, a car breakdown and more. If you’re a little low on cash and need a little help with rent for a month, then using your credit card is worth it.

Your credit card rewards are worth it – The fees associated with a paying rent with your credit card may be worth the plunge. If your credit card rewards outweigh the fees, then paying with your credit card is a good choice. For example, if you pay 1,200 in rent and the processing fee is 1%, you’ll pay $144 a year in fees. As such, a credit card that provides you with rewards that exceed this amount would be worth it. 

Sign-up Bonus – Some credit cards have a welcome bonus that requires you to spend a certain amount within a period of time in order to receive the bonus. Paying your rent with your credit card to help you gain that bonus can be a good strategy.  

The Bottom Line

The bottom line is yes you could potentially use your credit card to pay your rent, but whether or not you actually should take a little more thought. If your landlord or property’s management has the ability to take credit card payments then the convenience might be exactly what you’re looking for. But you’ll have to make sure that the fees not outweigh the convenience. Everyone’s situation is different and therefore you’ll need to make your own decision, just make sure you take into account the above pros and cons and you should be able to make the best choice for yourself.

Caitlin Wood, BA avatar on Loans Canada
Caitlin Wood, BA

Caitlin Wood is the Editor-in-Chief at Loans Canada and specializes in personal finance. She is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. Caitlin has covered various subjects such as debt, credit, and loans. Her work has been published on Zoocasa, GoDaddy, and deBanked. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security.

More From This Author

Special Offers

More From Our Experts

https://loanscanada.ca/wp-content/uploads/2017/09/ported-motgage.png
Porting A Mortgage | What Does It Mean?

By Bryan Daly
Published on June 11, 2024

Everything you need to know about porting your mortgage and when it's actually a good idea.

https://loanscanada.ca/wp-content/uploads/2017/12/Deed-in-Lieu-of-Foreclosure.png
Deed In Lieu Of Foreclosure In Canada: An Alternative To Foreclosure

By Lisa Rennie

A deed in lieu of foreclosure is when you agree to voluntarily hand over the deed to your home to the lender instead of going through a foreclosure.

https://loanscanada.ca/wp-content/uploads/2013/10/Condo-vs-house.png
Pros And Cons Of Buying A House vs Buying A Condo

By Lisa Rennie

What are some of the disadvantages and advantages of buying a house or a condo?

https://loanscanada.ca/wp-content/uploads/2024/06/Moi-Program-1.png
What Is The Moi Program?

By Savanna Craig

Are you wondering if the Moi program is worth it? Find how much Moi points are worth and where you can earn them.

https://loanscanada.ca/wp-content/uploads/2012/08/monthly-costs-of-owning-a-house-ontario.png
The Costs Of Owning A Home In Ontario

By Lisa Rennie

Wondering how much it costs to own a home? Let's look beyond mortgage closing costs and analyze exactly are the monthly costs of owning a house in Ont...

https://loanscanada.ca/wp-content/uploads/2024/05/best-time-to-buy-a-house.png
When Is The Best Time To Buy A House?

By Lisa Rennie

Learn how to determine whether or not it's a good time to purchase a house.

https://loanscanada.ca/wp-content/uploads/2018/01/power-of-sale.png
What Is A Power Of Sale For A Mortgage?

By Jessica Martel

A power of sale essentially allows the lender - not the homeowner - to sell the home if the borrower defaults on the mortgage.

https://loanscanada.ca/wp-content/uploads/2021/06/BC-Disability-Assistance.png
Do You Qualify For Disability Assistance In BC?

By Matthew Taylor

The BC Disability Assistance Program provides monthly disability assistance payments to people with the Persons with Disabilities (PWD) Designation.

Recognized As One Of Canada's Top Growing Companies

Loans Canada, the country's original loan comparison platform, is proud to be recognized as one of Canada's fastest growing companies by The Globe and Mail!

Read More

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Free
Service
Expert Tips
And Advice
Exclusive
Offers

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.

Koho Prepaid Credit Card