One of the easiest ways to hit the minimum spend on a new credit card is to pay your rent with a card.
As a reminder, AskSebby is all about getting a positive return on your credit cards. Only pay your rent with a credit card if you're getting positive expected value, and if you can pay off the balance in full.
There are three main ways to pay your rent with a credit card online:
- Pay directly
RoomiPay is one of the more interesting ways, yet more volatile options because the percentages change every month.
For March 2018 the percentages were as follows:
- First 50 users to sign-up at 0% fee
- First 150 users to sign-up at 2% fee
- First 100 users to sign-up at 2.5% fee
- 3% fee remains open until the program officially closes on March 22nd
If you compare the numbers, the only competitive groups for low credit card processing fees are the first 200 people who pay rent. At 3%, you're better off using Plastiq.
RoomiPay's service has improved over the months. When they first started the rent program in January, most of the checks were late, and they were handwritten. Fast forward to March, and the rent checks arrived significantly earlier (before the first of the month), plus the checks were printed.
RoomiPay does accept peer-to-peer payments if you are paying a master tenant, as opposed to a management company.
See our full review of RoomiPay in this post.
If your landlord accepts credit card payments directly, then it might make sense to go through them if the credit card processing fee is less than 2.5%.
Plastiq charges a flat 2.5% fee. You can use any type of credit issuer ( Visa, Amex, Mastercard, Discover) to pay residential rent. There's the option to pay via check, ACH, or wire.
One thing to be aware of is that Plastiq does not accept peer-to-peer payments, meaning that you cannot pay your friend or family member for rent.
If you are paying a landlord that is not a management company or corporations, you might have to provide some paperwork.
If your landlord accepts ACH or wire transfers, the following timelines apply:
- Domestic Wire (Payment arrives same-day)
- International Wire (Payment arrives next-day)
- ACH Direct Deposit (Payment arrives in 4-5 business days or expedited option available)
Try Plastiq and get $500 in fee-free payments after you spend $500 (referral link): http://bit.ly/asksebbyplastiq
See our full review of Plastiq in this post.
Regardless of the option you pick for rent, be sure to pay the service by the 20th of the month so there's enough time to process and send out payment.
For most people, I think it makes sense to see if you can get a cheap percentage with RoomiPay, if not, then go with the next most economical alternative.