Can You Pay Your Mortgage with Credit Card

Can You Pay Your Mortgage with a Credit Card?

The short answer to ‘can you pay your mortgage with a credit card’ is probably. It depends on the terms of your credit card and your mortgage holder. Since these are considered debt-for-debt transactions, credit card companies are wary of them. The more appropriate question is SHOULD you pay your mortgage with credit cards? Well, lets answer that question in a few paragraphs.

Why Would You Use a Credit Card to Pay Your Mortgage?

You might choose to use your credit card to pay your mortgage for several reasons. One is the rewards you accrue for using your card. Another is if you are temporarily short of cash. However both situations can definitely put you in a financial bind.

Can I Use a Credit Card to Pay My Mortgage?

It depends on your credit card network, credit card issuer and mortgage lender. In general, Wells Fargo credit cards can be used as long as the mortgage holder accepts credit card payments. American Express does not allow mortgage payments on their credit cards. Visa allows you to use debit or prepaid credit cards to pay your mortgage. Mastercard allows you to use either debit or credit card to pay your mortgage. However, these are NOT cut in stone. Always check with both your credit card network and your credit card issuer

The mortgage lender is the next hurdle. The lender may be willing to accept credit card payments that are processed through a third-party payment service provider. These third-person providers charge fees, often of 2.5% of the mortgage payment, every time you use the service. Those fees can offset any rewards that you might earn for using your credit card.

The other issue is if you don’t pay off your card in full each month. The interest rates and credit card fees will eat up any reward you might get. See our sample below for more details.

Monthly Mortgage Due: $1000
Typical Reward (2%): + $20
Third Party Processing Fee (2.5%): – $25
Average Monthly Interest Rate (1.16%): – $11.16

Using a third-party payment processor, if you don’t pay off your card in full, the $20 in rewards will be eaten up the first month by the processing fee and monthly interest rate.

Before you pay a mortgage using your credit card, contact the card network, the card issuer and the mortgage lender to make certain that the payment will go through. Otherwise, you’ll end up with late fees and other consequences for late or missing payments.

Should You Pay Your Mortgage with Credit Cards?

The answer, as you’ve probably realized, is no. Except for very specific and well thought out reasons, using a credit card to pay your mortgage is generally a bad idea. You stand the risk of running up some very high interest charges.

Another issue is something called credit utilization ratio. This is the ratio between debt and credit limit. The higher the ratio, the lower your credit limit and the lower your credit score. This can have a significant impact on your creditworthiness and ability to purchase a car or get a loan. Carrying a large credit card balance from a mortgage payment can hurt your credit score.

My Credit Card Mortgage Debt is Killing Me

If you have gotten yourself in financial difficulties using your credit card to pay your mortgage and you are drowning in debt, Pacific Debt, Inc may be able to help you. We are a professional debt settlement company that works with people with significant amounts (over $10,000) in credit card debt to help settle their debt.

Pacific Debt Inc

Pacific Debt, Inc is one of the leading debt settlement companies in the United States with a national debt relief program. We can help you settle your debt, often for far less than you owe.

To be eligible for the Pacific Debt settlement program, you must have more than $10,000 in unsecured debt, and it takes roughly 2 to 4 years to complete our debt relief program.

Pacific Debt, Inc is accredited with the American Fair Credit Counsel and is an A+ member of the Better Business Bureau. We rate very highly in Top Consumer Reviews, Top Ten Reviews, Consumers Advocate, Consumer Affairs, Trust Pilot, and US News and World Report.

For more information, contact one of our debt specialists today. The initial consultation is completely free, and a debt expert will explain to you all your options so you can clearly understand them.

Online Money Management for Consumers

Overwhelming credit card debt is often simply a symptom of poor spending and money management habits.

A great free resource for consumers who struggle to balance their check books each month is MINT.com. The site is owned and operated by Intuit, the same company that provides the popular Tubortax and Quickbooks software. The site is 100% FREE.

Mint.com ties together all of you finances into one easy to use portal, including your checking and savings accounts, retirement funds, credit cards, mortgages and car loans. In addition, it allows users to set up custom budgets and tracks all of your purchases, regardless of whether you use your credit card, debit or cash. With the click of your mouse you can quickly see how much you have spent at Starbucks, at Target or on more general categories such as groceries or clothing. Mint.com will tell you how your spending compares to others nationally and give you tips to save money.

If you would like a more personal approach to money management, call Pacific Debt today 1-877-722-3328 and one of our representatives would be happy to review and budget and explain your options for tackling your debt issues.

How the debt ceiling impacts your credit card debt

As most Americans are aware our elected officials are currently evaluating a number of plans aimed at getting our nation’s ballooning debt under control while concurrently raising the debt ceiling.

Without raising the debt ceiling, it is predicted that the US could default on its current debt obligations and see its credit rating plummet from AAA to D status. From a consumer’s standpoint that is like seeing your FICO credit score drop from 750 to 500 overnight. In fact, the Federal Reserve is making plans for this possible scenario.

If the US does default, consumers should expect to see higher interest rates on everything from Credit Cards, mortgage notes, and car loans.

If you already find yourself in a situation where you can not meet your credit card obligations or are struggling to do so, give our counselors a call today at 1-877-722-3328 or email us at [email protected]

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