How to Pay Your Mortgage with a Credit Card 2018

We recently covered how to pay your rent with a credit card, and we had a few subscribers ask about mortgages. 

Plastiq is a service that lets you pay merchants with a credit card for a flat 2.5% fee. 

[ Update 6/2018: Offer Expired ] Plastiq reached out to offer Ask Sebby subscribers a promotional rate of 2% fee for all rent and real estate related payments (rent, business lease, HOA fees, and mortgage payments).

You can also send faster payments using ACH or wire transfers using Plastiq. 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):

How it works

  1. Sign up for a Plastiq account using the offer link: 
    • 2% promotion is valid for new users only
  2. Schedule 6 rent or real estate payments and you will only pay a 2% Plastiq fee for each payment. (Plastiq fee will be standard for any payments beyond the first 6.)
  3. Submit your first rent or real estate payment by May 31, 2018 at 11:59 PM ET.

New users will also receive 500 fee-free dollars after they make a payment of $500 or more. 

As a reminder, you should only pay your mortgage with a credit card if you're getting more than the fees involved. 

The fine print

  • You must sign up using the offer link to be eligible for this promotion
  • The promotion is valid for new users only (can't have an existing account)
  • Promotion applies to all rent and real estate payments including business leases, HOA payments, and mortgage payments
  • The first rent and/or real estate payment must be made by May 31, 2018 at 11:59 PM ET.
  • You'll still receive the regular 500 fee-free dollars after spending $500

Below is a chart that outlines which financial services accept Plastiq. If you're using a Mastercard or a Discover card, you can pay any rent, mortgage, or real estate payment without restrictions. 

American Express and Visa do not accept mortgage payments through Plastiq.

Mortgage Q&A

When should you stop applying for new credit cards if you're getting a mortgage?

You should stop applying for new credit cards at a minimum of 6 months before you start the mortgage process, but 12 months is ideal.

The ideal credit score is 750+ to qualify for the best interest rates.

How many lines of credit should you have before starting the mortgage process?

If you're a few years away from getting a mortgage, a lot of people who have thin credit files (1-2 credit cards) have a hard time getting a good interest rate.

Having more credit cards with low utilization and paying them off in full every month demonstrates that you're responsible with credit. It's recommended that you increase your credit card foundation to at least 5 cards.

An alternative to adding cards is manual underwriting. This process is for people who have less than 3 trade lines of credit. Underwriters can also look into rent, as well as utility bills, but there's a lot more documentation required. 

Credit card options

If you're trying to decide which card to use for payments, Discover is a good choice, but they have a limited credit card selection. 

With Mastercard, there are a few more diverse options to earn cash back, hotel points, or travel. 

You can view credit card offers by going to the "Credit Card Offers" tab. Find offers for the respective cards in "Cash Back Credit Cards" and "Airline Credit Cards." You don't have to use our links, but we're grateful when you do. Thank you for supporting AskSebby!

Below are some card examples:

Discover It Miles

Net Expected Value

  • Paying 2.5% (or 2%) to get 3% back
  • 0.5% net expected value
  • i.e., $100,000 mortgage payments net a free $500

Cash back cards

  • Bank of America MLB card
    • $150 bonus after $500 (first 3 months

    • Only 1% back via Plastiq though; not scalable

  • HSBC Cash Rewards
    • $150 bonus after $500 (first 3 months)

    • 1.5% on all purchases w/ 10% bonus = 1.65%

    • 1.65% back - 2.5% fees = not scalable

Hotel cards

  • Chase IHG Rewards Club Premier
    • 80k IHG after $2,000

    • 80k IHG = $480 to $640 in hotels

    • 1x back via Plastiq; not scalable

  • Chase IHG Traveler
    • 60k IHG after $2,000
    • 60k IHG = $360 to $480 in hotels

    • 1x back via Plastiq; not scalable

Airline cards

  • Citi AAdvantage Select Platinum
    • 50k AA after $2,500 spend

    • 50k AA = $600 in flights

    • 1% back via Plastiq; not scalable

  • Citi AAdvantage Executive
    • 50k AA after $5,000 spend

    • 50k AA = $600 in flights

    • Warning: this is a high annual fee card for lounge access