What To Know
- Plastiq is a third-party service that allows you to pay rent and other bills with a credit card.
- If you’re trying to meet the minimum spending requirement for a welcome bonus or other promotion, paying rent with your Chase Sapphire Preferred card can help you reach your goal faster.
- If you’re comfortable with the convenience fees and interest charges, and you value the rewards points and credit-building benefits, then using your card for rent payments can be a smart move.
If you’re a Chase Sapphire Preferred cardholder, you’re familiar with its impressive rewards and benefits. But did you know you can potentially use your card to pay rent? In this comprehensive guide, we’ll explore the ins and outs of using the Chase Sapphire Preferred card for rent payments and uncover the potential pitfalls you should be aware of.
Is It Possible to Pay Rent with Chase Sapphire Preferred?
Technically, the answer is yes. However, the process is not as straightforward as using a traditional debit or credit card. There are two main methods to pay rent with Chase Sapphire Preferred:
1. Plastiq
Plastiq is a third-party service that allows you to pay rent and other bills with a credit card. To use Plastiq, you’ll need to:
- Create a Plastiq account
- Link your Chase Sapphire Preferred card
- Enter your landlord’s information
- Pay a convenience fee (typically 2.5%)
2. Rent Payment Services
Some rent payment services, such as RentHop and PayYourRent, accept credit card payments. These services may charge a fee similar to Plastiq, and they may have specific requirements or limitations. Check with the service provider for details.
Benefits of Paying Rent with Chase Sapphire Preferred
Earn Rewards Points: Every rent payment you make with your Chase Sapphire Preferred card earns you Ultimate Rewards points, which can be redeemed for travel, gift cards, and other valuable rewards.
Meet Minimum Spending Requirements: If you’re trying to meet the minimum spending requirement for a welcome bonus or other promotion, paying rent with your Chase Sapphire Preferred card can help you reach your goal faster.
Build Credit: Using your Chase Sapphire Preferred card for rent payments can help you build your credit score and establish a positive payment history.
Drawbacks of Paying Rent with Chase Sapphire Preferred
Convenience Fees: Plastiq and other rent payment services charge convenience fees, which can add up over time.
Interest Charges: If you don’t pay off your Chase Sapphire Preferred balance in full each month, you’ll incur interest charges on the rent payment.
Credit Limit: Using your Chase Sapphire Preferred card for rent payments can eat into your available credit limit, which could limit your ability to make other purchases.
Alternatives to Paying Rent with Chase Sapphire Preferred
If you’re not comfortable paying rent with your Chase Sapphire Preferred card, there are other options available:
- Debit Card: Most landlords accept debit cards for rent payments, which typically involve no fees.
- Check or Money Order: Traditional checks or money orders are still widely accepted and do not incur any fees.
- Online Rent Payment Platforms: Some landlords offer online rent payment platforms that allow you to pay rent electronically without using a credit card.
Summary: Weighing the Pros and Cons
Whether or not you should pay rent with your Chase Sapphire Preferred card depends on your individual circumstances. If you’re comfortable with the convenience fees and interest charges, and you value the rewards points and credit-building benefits, then using your card for rent payments can be a smart move. However, if you’re on a tight budget or prefer to avoid unnecessary fees, there are alternative options available.
Frequently Asked Questions
Q: Can I pay rent with any Chase credit card?
A: Yes, you can use any Chase credit card that accepts Plastiq or other rent payment services.
Q: Are there any restrictions on the amount of rent I can pay with my Chase Sapphire Preferred card?
A: Plastiq has a maximum transaction limit of $10,000 per month. Check with other rent payment services for their specific limits.
Q: Will my landlord know that I’m paying rent with a credit card?
A: If you use Plastiq, your landlord will receive a check from Plastiq, not from Chase. Other rent payment services may vary, so check with the provider.
Q: What if my landlord doesn‘t accept credit card payments?
A: You can ask your landlord if they would be willing to use a rent payment service that accepts credit cards.
Q: Is it worth paying a convenience fee to pay rent with my Chase Sapphire Preferred card?
A: The value depends on how much you value the rewards points and credit-building benefits. If you earn enough points to offset the fees, it can be a good deal.
