As it seems to be the trend just about anywhere else, landlords and property managers are beginning to 
follow suit b allowing their tenants to pay rent with plastic. Landlords have been teaming up largely with third party service providers to make paying rent online with a credit card a viable option.
While there are some advantages to paying rent with a credit card, there are also several key disadvantages to the trend. For one, landlords will often pass along the additional costs of the transaction and processing fees associated with the service, which is typically 2 percent of the total transaction. Some tenants may not be happy about the additional fee but for those who may be faced with $100 or more charge for late fees, the transaction costs may not be a concern.
The other chief consideration is the potential for easily exceeding a card’s credit limit, thus facing over the limit penalties and negative credit problems. There is a particular cause for concern when a tenant charges rent with no viable way of paying it off at the end of the billing period.
So how can one determine whether or not their personal financial situation makes them a good candidate for paying rent with a credit card? Here are some helpful tips.
- You typically pay off your balance in full each and every month.
- You are involved with a credit card rewards program in which rewards for large purchases will offset any transaction fees of the payment.
- Your credit limit is high enough so as not to subject you to an high-use percentage charges.
- You have enough cash in the bank to cover the full amount of the rent charge.
If your personal financial situation does not meet any of the above criteria, you will probably be better off scraping together the cash you need for your rent and paying the late charges than using your credit card. Being desperate for cash is not a reason to use a credit card, especially for a big charge such as a rent payment. Even if you face a $100 charge for being late paying your rent, using a credit card can lead to years-long charges, penalties, and fees that far exceed $100. While it may be convenient to pay your rent online, it is probably more financial sound to dust off the old checkbook when paying rent.
Make Sense to Charge our Rent? was created by and is property of American Consumer News.