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Can You Pay Mortgage with a Credit Card?
July 1, 2025
Quick Answer
While most lenders do not accept direct credit card payments for a mortgage, it is possible to do so through a third-party payment service, which will almost always charge a processing fee.
Should You Pay Mortgage With A Credit Card?
Let's examine the pros and cons of paying your mortgage with a credit card.
Benefits of Paying Your Mortgage With a Credit Card
- Earning rewards: A large mortgage payment can help you accumulate significant credit card rewards, such as points, miles, or cash back.
- Meeting sign-up bonuses: Using your card for a mortgage payment can help you meet the minimum spending requirement for a lucrative new cardmember bonus.
- Managing cash flow: In a tight month, paying by credit card can provide short-term flexibility and help you avoid a late mortgage payment.
Drawbacks of Paying Your Mortgage With a Credit Card
- Processing fees: Most lenders or third-party payment services charge a convenience fee, typically 2-3% of the transaction, which can negate any rewards earned.
- High interest charges: If you carry a balance, the credit card's high annual percentage rate (APR) will apply, making your mortgage payment significantly more expensive.
- Limited acceptance: Many mortgage servicers do not accept credit cards directly, requiring the use of a third-party platform that adds its own fees and complexity.
- Potential for cash advance fees: Some card issuers may classify the transaction as a cash advance, which comes with higher fees and immediate interest accrual, and typically does not earn rewards.
How to Pay Mortgage With A Credit Card
Paying your mortgage with a credit card can be a strategic move to earn rewards, but it requires careful planning. Here’s a general guide to navigating the process successfully.
- Check with Your Lender: Before anything else, confirm that your mortgage lender accepts credit card payments. Many do not, and those that do often use a third-party payment processor.
- Understand the Fees: Third-party processors typically charge a convenience fee, often a percentage of the transaction. Ensure your credit card rewards will outweigh this additional cost before proceeding.
- Choose the Right Credit Card: Selecting a card with a high rewards rate is crucial to making this strategy worthwhile. To find a card that fits your needs, consider using the Kudos explore cards tool to compare options.
- Pay the Bill in Full: To avoid negating your rewards with high interest charges, you must pay off the credit card balance in full and on time each month. Carrying a balance will quickly erase any benefits.
Impact On Your Credit Score
While paying your mortgage with a credit card isn't always possible, when it is, it can affect your credit score in several ways. Here are the primary factors to keep in mind.
- Credit Utilization Ratio. A large mortgage payment can dramatically increase your credit utilization, which is the amount of credit you're using versus your limit. A high ratio can negatively impact your score.
- On-Time Payments. Successfully managing these larger payments can boost your on-time payment history, a key factor in your credit score. Conversely, missing a payment can cause significant damage to your credit.
Alternative Ways To Pay Mortgage
Bi-Weekly Payments
One popular strategy is making bi-weekly payments. Instead of one monthly payment, you pay half the amount every two weeks. This schedule results in 26 half-payments, equivalent to 13 full payments annually. The extra payment is applied directly to your loan's principal, which can shorten your mortgage term and reduce the total interest you pay over the life of the loan.
Automatic Bank Drafts
Setting up automatic drafts from your checking or savings account is another reliable method. This ensures your payment is always on time, helping you avoid potential late fees and credit score dings. Most lenders offer this option through their online portals, or you can configure it via your bank’s bill pay system for a hassle-free experience.
Choose the Right Card to Pay Mortgage
Now that you know you can pay your mortgage with a credit card, the next step is finding the one that gives you the most bang for your buck. Kudos’ AI-powered Explore Tool can help you sift through nearly 3,000 cards to find your perfect match. Take a quick quiz about your preferences, and Kudos will show you the top options, allowing you to compare features, rewards, and fees side-by-side. With a transparent, people-first approach, you can be sure you're getting unbiased recommendations to find your card.
For those wanting to maximize their credit card rewards, Kudos is the ultimate free tool for online shopping. Plus, we have a special offer of $20 back on your first qualifying purchase when you sign-up for free using the code “GET20” and shop at a Boost-supported store.
Frequently Asked Questions
What are the fees for paying a mortgage with a credit card?
Third-party payment services typically charge a processing fee, often between 2.5% and 3% of your total mortgage payment.
Will paying my mortgage with a credit card affect my credit score?
Yes, it can increase your credit utilization ratio, which may temporarily lower your credit score if the balance is high.
Are there benefits to paying a mortgage with a credit card?
The main benefit is earning credit card rewards, such as points or cash back, which could potentially offset processing fees.
Supercharge Your Credit Cards
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
