Do you feel like you're missing out on opportunities to earn rewards and build credit while paying your rent each month? You're not alone! Many people are unaware that they can actually get some pretty sweet perks when they use the right credit card to pay their rent. In this article, we'll help you discover the best credit cards for rent, so you can make the most of your monthly payments.
Best Credit Cards For Rent Table of Contents
The Top Credit Cards for Rent Payments
Choosing the right credit card to pay your rent can be a game changer when it comes to maximizing your rewards and benefits. Here are our top picks for the best credit cards to use for rent payments:
1. Chase Sapphire Preferred Card
- Sign-up bonus – Earn a generous bonus after meeting the minimum spending requirement in the first 3 months.
- Points earn rate – Earn 2x points on dining and travel purchases and 1x point on all other purchases, including rent.
- Point value – Points are generally valued at 1.25 cents apiece when redeemed for travel through the Chase Ultimate Rewards portal, making this a great option for renters who love to travel.
2. American Express Blue Cash Preferred Card
- Sign-up bonus – Earn a cashback bonus after meeting the minimum spending requirement in the first 3 months.
- Cashback earn rate – A whopping 6% cashback on groceries, 3% back on transit and gas, and 1% back on all other purchases, including rent.
- Annual fee – The card does have an annual fee, but the high cashback rate can easily offset the cost if you're a big spender in the bonus categories.
3. Capital One Quicksilver Cash Rewards Credit Card
- Sign-up bonus – Earn a cashback bonus after meeting the minimum spending requirement in the first 3 months.
- Cashback earn rate – Get a flat 1.5% cashback on every purchase you make, including rent, with no cap or limit.
- Annual fee – No annual fee makes this card a great choice for those looking to avoid extra costs.
4. Citi Double Cash Card
- Cashback earn rate – Earn 1% cashback when you make the purchase and another 1% when you pay it off, effectively giving you a 2% cashback rate on all purchases, including rent.
- Annual fee – No annual fee, making it a great choice for thrifty renters.
How to Use a Credit Card to Pay Rent Wisely
While there are clear benefits to using a credit card to pay your rent, it's crucial to follow these guidelines to avoid potential financial pitfalls:
- Pay off your balance every month to avoid interest charges.
- Ensure paying rent with a credit card doesn't carry additional processing fees from your landlord or property management. Otherwise, the fees could outweigh the benefits of the rewards earned.
- Keep your credit utilization ratio below 30% to maintain a healthy credit score.
Best Credit Cards For Rent Example:
Let's say you're using the Chase Sapphire Preferred Card to pay monthly rent of $1,200 with no additional processing fees. Over the course of a year, your 1x points earn rate on rent would accumulate 14,400 points. If you redeem those points for travel through the Chase Ultimate Rewards portal, they'll be worth $180. Additionally, you'll earn the sign-up bonus, which could be worth as much as $625 in travel rewards.
With those rewards, you could take a well-deserved vacation, pay for a weekend getaway, or use the points to offset your future travel expenses.
There you have it – using the right credit card to pay your rent can provide valuable benefits and help you make the most of your monthly housing payments. Now that you know the best credit cards for rent and how to use them wisely, it's time to start enjoying those rewards! Share this guide with friends and family to help them find the perfect card for their rent payments, and explore the other informative guides on Flik Eco to further optimize your personal finance game.
