Best Credit Cards to Pay Rent (2024)

FAQs

What is the best credit card for paying rent? ›

The Bilt card is the first of its kind and allows you to earn credit card rewards on your rent without paying any sort of transaction fee. Although the Bilt card doesn't have a welcome bonus, it has some great bonus categories that can help you earn points faster.

The only time you should pay your rent on a credit card

“To the extent you are using a card and earning rewards, if you can pay your balance in full each month then at least you're getting some tangible benefit of paying with plastic,” Ulzheimer says.

Landlords typically look for a credit score of 620 or higher. A higher credit score may increase your chances of getting approved and may result in better rental terms. Other factors like income, rental history, and employment stability also play a role in the approval process.

Cash, check, and money order are the traditional rent payment options. Many landlords, especially large ones, now accept electronic bank transfers. Online, money transfer services like Zelle, Venmo, and PayPal are also gaining popularity, especially with smaller landlords.

Most landlords use FICO credit scores to determine if an applicant qualifies for an apartment. The typical categories for those scores are: Exceptional: 800 to 850. Very Good: 740 to 799.

Landlords don't traditionally report rent payments to credit bureaus, and most credit-scoring models don't include rental payments. However, paying rent can potentially help you build credit under certain circ*mstances. These days, some credit-scoring models use alternative data to calculate your creditworthiness.

If your landlord is a large property management company, they might offer the option to pay by card. Landlords who do accept direct credit card payments have to pay merchant processing fees for the privilege, and it's common for them to pass those fees on to the renters on top of rent.

If your goal is to get or maintain a good credit score, two to three credit card accounts, in addition to other types of credit, are generally recommended. This combination may help you improve your credit mix. Lenders and creditors like to see a wide variety of credit types on your credit report.

Every Credit Card comes with a transaction fee. In the case of ICICI Bank Credit Cards, the transaction fee is just 1% of the transaction amount. For example, if your monthly rent is Rs 20,000, the transaction fee will be Rs 200 (1% of Rs 20,000).

A 650 credit score is generally considered “fair.” A score in this range may limit you from certain financial opportunities. Payment history, monitoring your credit and lowering your credit utilization ratio can be helpful ways to improve this score over time.

What is the minimum credit score a landlord should accept? ›

Most landlords are looking for a score somewhere between 600 – 650 since renters don't have the credit history of making mortgage payments to boost their credit score.

According to FICO, 600 is considered a fair credit score. The company says a score above 670 is better. While 600 may not be as desirable to landlords, it still may be possible. That's because acceptable credit scores can vary by region and a landlord's discretion.

The best ways for tenants to pay rent are certified payment methods. These are trackable methods that are more easily verifiable. Some methods are physical paper payment, such as cashier's checks, bank drafts, certified checks, and money orders, while others are online.

According to a recent Apartment List report, the median rent in America is $1379 per month, so Zelle's payment limits will definitely complicate your ability to collect. Beyond the limits, Zelle is also risky for rent collection due to the potential for your tenant to accidentally pay the wrong person.

Most landlords partner with one of the three major U.S. credit bureaus: TransUnion, Experian, or Equifax. These background checks will actually reveal much more about a prospective tenant than just their credit score; the goal is to discover any suspicious financial activity in the applicant's background.

Creditors and landlords like to see consistent payments over a long time. Reduce your debts. If you have credit card debt, student loans or other outstanding debts, it helps to focus on paying off as much debt as possible before applying to rent. Reducing your balance by paying down your debt can help raise your score.

A credit card may supply you with extra insurance and help you reclaim costs in the event of a dispute. Also, if the company had to withdraw money from your debit card and then refund it, you could lose out on transaction fees and an unfavourable currency exchange rate.