Can You Pay a Mortgage with a Credit Card?

10/21/2021
A person giving keys to a house to another, depicting buying a new house.

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Using a credit card to pay off a mortgage is possible and can benefit you in several ways.

Discover if you can use a credit card to pay a mortgage or not.

The short answer is YES. You can pay your mortgage with a credit card. But the reasonable question people usually ask is, even if they can pay their mortgage through a credit card – should they? Here, we compiled several reasons that justify paying a mortgage with a credit card. However, it is important to note these circumstances may not apply to everyone, and you should always consult a financial expert to advise you accordingly.

When Does Paying Your Mortgage with a Credit Card Make Sense?

Here are the top four reasons when paying a mortgage through your credit card makes sense.

1. More Time to Pay Off

When financial hardship strikes, people look for ways to help them find more time to pay up. Hence, it isn’t shocking that people can actually pay their mortgage via credit card. A credit card mortgage payment will buy you time and even allow you to pay a single mortgage payment over a period of several months instead of just one singular payment made from one significant monthly earning. 

2. More Interest Earned on Cash

Nobody keeps a load of cash at home in a safe anymore. Instead, people open up accounts in banks that not only save their load of cash but allow them to earn interest. The longer your cash stays in the account, the more interest accumulates. Hence, people are reluctant to withdraw money from their bank accounts for bigger payments like mortgages, especially when a good amount of interest is due. That’s when paying with a credit card makes sense.

3. Earn Credit Card Reward Points

Making as big of a payment as your monthly mortgage payment through your credit card is bound to pay off with a number of credit card reward points. It works as a great savings scheme, especially for equally hefty bills, if not more like traveling, hotel stays, and hospitalizations. Therefore, credit card mortgage payments allow you more time to pay off while you enjoy reward points.

4. To Avoid Foreclosure

Foreclosure is a legal process that gives your lender the power to recover a certain amount owed on a defaulted loan by taking over ownership of your mortgaged property. Naturally, if your mortgage is on credit, it automatically rids you of any sort of foreclosure whatsoever. That doesn’t mean you should misuse this aspect in your favor. However, it gives you a fair advantage over someone who is likely to take advantage of you via a loan.

For more details on issues related to credit reporting, contact Consumer Attorneys today!


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