• Home
  • Cash
  • Can you pay off your mortgage with a credit card?

Can you pay off your mortgage with a credit card?

By on March 11, 2021 0

Pay your mortgage with a credit card

It would be great if you could use a rewards credit card to pay off your mortgage every month so you can earn points. Or if your mortgage agent allowed you to pay off your mortgage with a credit card when you’re a little short.

However, most mortgage agents do not allow this. This is because their profit margins are very thin and they cannot absorb the fees that the credit card company charges them to receive your payment. However, some lenders allow this, usually by issuing you a credit card when you close your mortgage.

Check your new rate (June 2, 2021)

Paying your mortgage with a credit card: it’s possible

There are several ways you can use your credit card to pay off your mortgage. One is to simply take a cash advance, deposit the money into your checking account, and pay off your mortgage with a check or debit card.

The second way is to use the services of a third-party company like Plastiq, which charges your credit card and then pays your mortgage by wire transfer or paper check. However, the fee for this can reach 2.5% of the payment amount.

Another cheaper option is AMEX Bluebird which is an online checking account that allows you to pay any of your bills using their online payment system. It is free to use and you can charge your account (up to $ 5,000 per month) at Walmart.

Finally, you can buy VISA PIN gift cards (which act like debit cards) with a credit card and pay your mortgage with them.

The best way to pay off your mortgage with a credit card is when you can take advantage of the rewards card offers. For example, many card companies periodically offer a huge bonus points when you open a new card and spend a certain amount on a specified date. Points, in this case, will likely offset the costs of a cash advance or third-party service.

When plastic isn’t fantastic

You should be concerned if you can’t regularly pay your mortgage without using a credit card. Maybe times are tough and you really have no choice. But having to juggle debt like this is a bad sign.

Solve these 3 problems and quickly increase your FICO score

Maybe it’s time to take back control of your finances. This exercise is not very fun. But it’s much better than the alternatives. Here is a plan:

  1. Track every cent you spend over at least a month
  2. Analyze your results and see where you have opportunities to save
  3. Establish a difficult but realistic family or personal budget that gives you the money available to pay off your debt
  4. Set Debt Reduction Goals: Having Milestones Helps You Track Progress and Adjust Your Goals to Reality
  5. If you have a few small balances, by all means, clean them up first: quick wins are good for your morale.
  6. Then pay off your debt at the highest interest rate first: probably bank and credit cards.
  7. Go to lower interest balances as you eliminate the more expensive ones
  8. You should soon find yourself in a virtuous circle: the less you owe, the more your monthly payments are reduced and the faster you can erase your remaining debt.

Have things got so bad that you can’t manage this plan? You need professional help. Get good debt advice from a reputable advisor. A good source for this is the National Foundation for Credit Counseling website.

Set your priorities

You need to recognize the difference between secured and unsecured debt. With unsecured debt, late payments could hurt your credit rating and compromise your ability to continue borrowing. But with secured debt, your home is in danger if you fail to make your payments. Oh, and you still see your credit score ruined and your continued borrowing made difficult.

Do you see the difference ? These are the same, except that with one, you might end up sleeping in your car or on your friends ‘sofas or in your parents’ spare bedroom.

Protect the roof over your head

You might think that prioritizing your mortgage over your plastic makes good sense. During the worst years of the Great Recession, many more consumers prioritized unsecured debt over protecting their homes.

Maybe you can see why. If your credit cards are needed to keep feeding your kids, you’ll keep them afloat. It is usually a mistake to judge the financial choices of others when you have not been in their situation yourself.

We are no longer in the Great Recession. Overall, the economy is doing well. Yet, as recently as May 2017, TransUnion said, “When faced with the choice of what debts to pay and what to default, financially troubled consumers tend to prioritize unsecured personal loans before. other credit products such as auto loans, mortgages and credit. cards. “

It’s time to get in shape, financially

Some economists are already saying that we should soon experience another recession. The current business cycle, which has seen real growth in the economy, is now one of the longest on record and could end at any time.

Now may be the time to cut back on luxuries, cut back on discretionary spending, pay off unsecured debt, and close the hatches. There could be thunderstorms ahead. And you might need that roof over your head.

Check your new rate (June 2, 2021)

  Cash