Owning a credit can come with its perks, especially when it comes to handling your bills. You might have been considering using your card to pay off your rent and reap rewards while you do it. However, before you take out your plastic to pay for your rent there are a few handy things to know so that you can avoid missing payments on your credit card.
Can you use your credit card to pay rent in Australia?
You could find it tricky when it comes to using your credit card to pay for your rent. Most Australian real estate agents and landlords choose to have payments done through an electronic fund transfer (EFT), direct debit, or BPAY payments as their preferred options. It is possible to find a small pool of land lords or estate agents that will accept credit card payments, but it does come with its costs.
What services will allow you to use a credit card to pay rent?
There are a select few services that you can use to pay for your rent. These are usually third-party companies such as DEFT, Rental Rewards, Easy Share, and Rent Pay that are partnered with real estate agencies or landlords. Some are independent processors. However, keep in mind that in order to use such services you can attract a surcharge fee for each card transaction which can affect your credit card payments at the end of each month.
What other costs are involved when I use my credit card to pay rent?
Before you choose to pay your rent through your credit card it is important that you check the costs involved with it so that you don’t end up biting off more than you can chew. Some bill payments that you use your credit card to pay for may be treated as a cash advance transaction depending on how it is processed. This is more so when the method of payment you choose is not set up to accept credit cards. Furthermore, this can prevent you from earning points.
Taking the interest charges that come with this type of payment on your card needs to be carefully considered since it will be treated as a purchase. Weighing the cost of using your card for rent against the interest rate can help you decide whether the transaction will be worth it in the end.
What to avoid when using your credit card to pay rent
If you find a payment method that does accept credit cards to pay rent and you have checked with your provider that using this method won’t attract a cash advance fee, then these are a few things that you need to avoid when using your card:
- Dishonour fees:
- Always remember to stick to your credit cards limit to void attracting a dishonour fee. There are some cases where you can attract a double dishonour fee from your card provider and the service provider that you opted to use.
- Overdraft fees:
- Taking more money from your card despite going over your credit limit could push you into a debt spiral. You could consider moving into a rental that is more affordable to avoid spending more than you can afford.