Pay your mortgage with a credit card for the rewards?

Bow Commander · 10-05-2012, 19:45

Does this work? I have an Amazon rewards that I immediately turn around and pay off once my purchase is made. It has given me many dollars in rewards towards my next purchases.

Is there anything stopping a person from using a credit card for mortgage payments?

I'm with Metlife, i'll log in and see if credit card is an available payment option.

tylernt · 10-05-2012, 19:48

Sure. Used to pay my apartment rent on one, it was awesome.

Just don't get suckered into thinking "oh I'll pay it off next month". The moment you pay interest, most/all of your "profit" evaporates.

Bow Commander · 10-05-2012, 19:56

Quote:

Originally Posted by tylernt

Sure. Used to pay my apartment rent on one, it was awesome.

Just don't get suckered into thinking "oh I'll pay it off next month". The moment you pay interest, most/all of your "profit" evaporates.

Never. I would immediately log in to the credit card website and pay it off with my debit card. I went to buy a Magpul AFG1 this afternoon and realized I had about $20 in credits on the card, so it came to $10 shipped. Pleasant surprise.

michael e · 10-05-2012, 20:11

A guy at work uses his bass pro shop visa for everything . He says when they give you 1k a year you almost break even buying a gun from them

Bow Commander · 10-05-2012, 20:16

Quote:

Originally Posted by michael e

A guy at work uses his bass pro shop visa for everything . He says when they give you 1k a year you almost break even buying a gun from them

A neighbor told me his brother uses his Cabela's credit card to do the same thing! If i'm reading correctly, Metlife doesn't allow it

HollowHead · 10-05-2012, 20:36

I use my Cabela's card for everything from insurance premiums to beer, pay it all in full and get a free gun of my chosing every year. When I was still paying a mortgage and car payments, three guns. HH

rhino673 · 10-05-2012, 20:41

We have a small business that my wife pays most of the bills with her Carnival Cruise card. Then of course she pays it off every month. It has completely paid for the last few vacations including excursions.

***TKM*** · 10-05-2012, 20:47

I've never made an interest payment in my life.

The CC people pay me though.

HollowHead · 10-05-2012, 20:48

The key is paying it off. The card is unimportant, the terms are unimportant and the incentives are unimportant if you don't float a payment. HH

certifiedfunds · 10-05-2012, 21:04

Just go online and set it up to pay in full automatically each month. Done.

sappy13 · 10-05-2012, 21:14

im allowed to use mine to pay my rent, but the property management charges an additional fee for using CC, which is more than what i would make in rewards.

**janice6** · 10-05-2012, 21:17

This is just interesting and from some years ago.

Years ago I was still working. A friend ( middle aged PhD EE working for one of the largest Defense companies) told me he bought a new car and tried to pay it off with his credit card, so he could get the "air miles".. (yes, he had a limit that would allow this).

When it was presented and the car dealer called the credit card company to get it approved, they said no. Emphatically, no.

I thought this was funny (odd), but he couldn't do it, although stories of others doing it.

certifiedfunds · 10-05-2012, 21:32

Quote:

Originally Posted by janice6

This is just interesting and from some years ago.

Years ago I was still working. A friend ( middle aged PhD EE working for one of the largest Defense companies) told me he bought a new car and tried to pay it off with his credit card, so he could get the "air miles".. (yes, he had a limit that would allow this).

When it was presented and the car dealer called the credit card company to get it approved, they said no. Emphatically, no.

I thought this was funny (odd), but he couldn't do it, although stories of others doing it.

I suspect it was because they would have no lein, however why they would care about $30,000 or whatever in unsecured debt for a car vs anything else?

HollowHead · 10-05-2012, 21:37

Quote:

Originally Posted by sappy13

im allowed to use mine to pay my rent, but the property management charges an additional fee for using CC...

I don't know Georgia law, but this is illegal in many states. HH

Altaris · 10-05-2012, 21:42

One of my accounts at work buys a few million in servers/storage per quarter from me. The owner puts all of it on his card. He then uses all of the air miles he gets to send his top sales reps on a trip every quarter since he earns so many points.

certifiedfunds · 10-05-2012, 21:45

Quote:

Originally Posted by HollowHead

I don't know Georgia law, but this is illegal in many states. HH

Also a violation of their agreement with Visa, MC, Amex

Annhl8rX · 10-05-2012, 21:46

My mortgage company won't let me pay with a credit card, or I'd do just that.

HollowHead · 10-05-2012, 22:03

Quote:

Originally Posted by Annhl8rX

My mortgage company won't let me pay with a credit card, or I'd do just that.

That is their right. Charging you more for doing so isn't. HH

JMS · 10-05-2012, 23:33

Suntrust doesn't offer the option otherwise I would. Everything else gets charged to the CC and paid off in full every month, 2% gets sent to a 529 college savings plan.

When I worked for the CC company I had a customer charge $100k plus for his business every month and rack up thousands of travel miles, it was a beautiful thing.

Snaps · 10-05-2012, 23:46

I pay my rent every month with my credit card. get my cash back and my points then transfer the money

RonS · 10-06-2012, 04:02

When we were settling my MILs estate our lawyer said that he and his wife built a house that way. She acted as the general contractor and paid all the bills she could with a credit card. I don't know how much they made but I know he said that they took a long vacation in Hi. that way, among other things.

jbutenhoff · 10-06-2012, 06:41

I would doubt that many banks would take a card for payment on a mortgage given that they would have to eat the 2-3% transaction fee. Also, even if they did there is a huge chance that they would fall under the LTI fees (Large Ticket Interchange) so you would get ZERO rewards.

airmotive · 10-06-2012, 06:41

Quote:

Originally Posted by janice6

This is just interesting and from some years ago.

Years ago I was still working. A friend ( middle aged PhD EE working for one of the largest Defense companies) told me he bought a new car and tried to pay it off with his credit card, so he could get the "air miles".. (yes, he had a limit that would allow this).

When it was presented and the car dealer called the credit card company to get it approved, they said no. Emphatically, no.

I thought this was funny (odd), but he couldn't do it, although stories of others doing it.

That's because the CC companies charge the vendor a % of the sale (which is where those freebies come from). The % of the sale on a $30k car would likely be more than the commission the sales guy is making.

Me? Delta Skymiles card = a first class flight with wifey somewhere cool every year. We leave for Ireland in 12 days.

If we purchased the tickets with cash, they would run about $5,000 each. Last year's trip to China would have been $9,500 each.

To me, CC rewards are like tax deductions.
Somebody has to pay for them, but if the rules are set up so that YOU don't have to pay for them, you're a fool for not taking advantage of everything offered.

That said, most mortgage companies don't allow payment by CC. There are ways around this (for a fee), but those generally don't wash out in your favor.

certifiedfunds · 10-06-2012, 07:09

I suppose you could use those checks they send every month.

I wonder if the merchant incurs a fee when it deposits those?

snubfan · 10-06-2012, 07:17

My mortgage is through Wells Fargo and they charge a fee of $12.99 to pay it with a CC. I don't know if that is company wide or just a state by state thing.

As far as the rewards game goes, it's one of my favorites. All of my cards are no fee cards with some sort of rewards program.