At a Glance

Paying your mortgage with a credit card is a financial move that can come with both benefits and drawbacks. Let’s explore the ins and outs of using your credit card to cover your mortgage payments, offering insights into the process, reasons to consider it, potential drawbacks, and essential considerations before taking the plunge.

In this article, you’ll learn:



The median monthly mortgage payment in the U.S.

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Can you make your mortgage payment with a credit card?

The short answer is yes; it’s possible to pay your mortgage with a credit card. However, the process is not as straightforward as writing a check or setting up automatic bank transfers. Here’s how you can do it.

How to pay your mortgage using a credit card?

1. Pay through 3rd party service

Several third-party payment processing services allow you to pay your mortgage using a credit card. These services act as intermediaries, charging your card and sending the payment to your mortgage lender on your behalf. Be aware that they may charge processing fees, so compare options carefully.

2. Money order

You can purchase a money order with your credit card and send it to your mortgage lender as payment. However, this method also comes with additional fees, including cash advance fees, so consider only if the rewards outweigh the costs.

3. Buy gift card

Some homeowners choose to purchase gift cards using their credit cards and then use those gift cards to make their mortgage payments. While this method can be creative, it may not always be accepted by your mortgage lender.

Reasons to pay your mortgage with a credit card

1. Earn rewards

One of the primary motivations for using a credit card to pay your mortgage is the potential to earn rewards. Many credit cards offer cashback, travel points, or other incentives for spending, which can help offset the cost of your mortgage.

2. Earn interest

If you have a credit card with a 0% introductory APR offer, you can temporarily “float” your mortgage payment, earning interest on the money you would have paid upfront. However, pay off the credit card balance before the introductory period expires to avoid high interest charges.

3. Avoid late payment

Using a credit card can help you avoid late mortgage payments, preventing damage to your credit score and costly late fees.

4. Avoid foreclosure

In extreme cases, if you’re facing foreclosure, using a credit card might be a last-ditch effort to keep your home. Be cautious, though, as this can lead to significant credit card debt if not managed properly.

Drawbacks of paying mortgage with credit card

While there are potential benefits, there are also some significant drawbacks to consider:

  • High fees: Credit card processing fees can add up quickly, eroding the benefits of rewards or interest earnings.
  • Impact on credit score: High credit card balances can negatively affect your credit utilization ratio and credit score.
  • Potential debt: Carrying a large balance on your credit card can lead to debt that’s challenging to pay off.
  • Risk of missed payments: Reliance on credit cards might lead to overspending and financial instability.

Things to consider before paying a mortgage with a card

Before making this financial move, consider these factors:

  • Processing fees: Calculate the total fees you’ll incur and compare them with the potential rewards or interest earnings.
  • Credit card APR: Ensure you understand your card’s APR and the consequences of carrying a balance.
  • Credit score impact: Monitor your credit score and credit utilization ratio to avoid detrimental effects.
  • Lender acceptance: Confirm whether your mortgage lender accepts credit card payments.

Will it impact your credit score?

Paying your mortgage with a credit card can impact your credit score, both positively and negatively. It’s essential to understand how it might affect your financial health.


Yes, many credit cards offer rewards for various types of spending, including mortgage payments.

Consider a scenario where you earn 2% cashback on your credit card, and your monthly mortgage payment is $1,500. By charging your mortgage payment to your credit card, you could earn $30 in cashback annually.

It typically makes sense when the rewards or interest savings outweigh the processing fees.

Yes, many mortgage lenders offer online payment options. Check with your lender for specific details.

Some lenders may not accept credit card payments due to processing fees and the potential for financial instability for borrowers.