RoomiPay: Use a Credit Card to Pay Your Rent

RoomiPay is a new way to pay your rent with a credit card. RoomiPay is a product of Roomi, Inc., an app that helps you find a roommate. To date, Roomi has raised $11 million in funding, so it seems like they're a trustworthy company. 

There is a 2% transaction fee to use the service, but if you're looking to meet the minimum spend requirements on a new card that has a high sign up bonus, it might be worth it. 

A few other services that allow you to pay rent with a credit card are RadPad and Plastiq, but there are limitations are the type of payment processor you can use. With RoomiPay, there doesn't seem to be any restrictions at the moment. 

The idea is straightforward, instead of using a check, cash, or money order to pay your landlord, RoomiPay will send payment to your landlord. 

As a reminder, I would only recommend RoomiPay (and most credit cards) to people who pay off their balance in full every month.

If you carry a balance or pay interest, RoomiPay is NOT for you. The goal should be to hit the minimum spend by paying your rent to earn free travel or free cash back.

Before using RoomiPay, I recommend lowering your cash advance limits. For example, if you sign up for the Amex Platinum, and you get approved for a $20,000 credit limit. If your cash advance limit is $2,000 and your rent is $1,500, you don't want the limits to be close. 

If for some reason the RoomiPay transaction is viewed as a cash advance, then you're going to end up paying a lot of fees. Contact your bank via phone or secured message to lower your cash advance limit to $0 or $100.

Whenever services that allow you to pay rent with a credit card popup, they're not going to work forever. Just because they accept all payment processors now or only charge a 2% transaction fee, doesn't mean that this will be the case a few months down the line. I don't expect this service to last, so act fast if you need to hit minimum spend on a new card.