Posted onOctober 23/2015
There are a lot of ways to use your credit card these days. You can swipe it, type it, insert it and tap your card online and in-store almost everywhere. You can buy almost anything with your card; clothing, food, technology, the options are endless.
But have you ever thought of using your credit card to pay your mortgage?
It’s just another option in the pool of payment options that may be available to you. A credit card always has good points and bad points, but do the bad points outweigh the good ones? It’s up to you to decide what works best in your situation.
The good side of using your credit card:
Before you think this is a good idea and act on it – you must remember that it doesn’t make sense to pay your mortgage with your credit card if you would be unable to pay for it otherwise. The main purpose of using a credit card to pay your mortgage is to earn points, cashback, and other rewards. These benefits can have a great payoff, but only if you’re able to put the money back onto your card immediately.
Before you make any decisions, make sure to fully think through the implications paying via credit card will have on your finances.
If you’ve made the decision to pay your mortgage with your credit card, follow these steps:
The down side of using your credit card:
- Choose the right card. Which card gives you the most points or rewards? VISA, MasterCard, American Express, etc. You want to maximize the amount of awards you can get.
- Collect all the information you need. You will need to know the account number, the mailing address or online banking information and the due date of the payment.
- Pay your bills off in full immediately and earn your rewards.
As good as it all sounds (earning rewards, points, and cashback), you have to be careful because the bottom line is: it is still a credit card. If you do not make your payments on time, your credit score and finances might get effected the process.
This will have a long-term effect on your ability to get credit or loans, so it is important that you spend time to think everything through before you make your final decision. Make sure to do your research, there is a lot of valuable information available online and by speaking to a representative from your lending institution or bank, you can get all the information needed to help you make an informed decision.