×
Should I use my credit card to pay off my mortgage?

Should I use my credit card to pay off my mortgage?

February 6, 2017
credit card
Source: Shutterstock

It might surprise you, but a lot of people ask themselves this question. From a certain point of view, it makes sense to do it. If you use your credit card to pay off your mortgage, you will be able to get points and, in the end, rewards such as cash back or frequent flier miles. But is it smart? This article will tell you everything you need to know.

It’s important to know that you have very few options, if you try to pay off your mortgage with a credit card. And even if you do it, it might not be worth it. Mortgage services don’t usually allow borrowers to make direct payments via their credit cards. But you could do it, indirectly, if your credit card offers a bill pay service. However, these services limit cardholders to a preselected list of potential payees. And it’s unlikely that the list will include your mortgage servicer.

Also take into account the fact that the bill pay services that let you pay off your mortgage with a credit card may not include any rewards. In spite of this, you should take advantage of this services, especially if there are no fees associated with it and you are able to pay off everything on time and in full.

Finally, there are also third-party services out there, that will help you pay your mortgage with a credit card. Unfortunately, the fees they charge will probably exceed any rewards. So, in the end, you’ll actually end up losing money.

Never forget the dangers of credit card debt!

Never forget how easy it is to bring credit card debt into your life. It just takes a few missed payments for everything to spiral out of control. And if you’re also dealing with a mortgage, you might find yourself in even deeper waters. So always be careful when using your credit card, no matter what you use it for.

Thomas Hookton

Thomas Hookton is a finance journalist, history buff and science fiction connoisseur. Hit him up via email.

ADVERTISEMENT

Around the web

Join the Conversation