Pay your mortgage with a credit card for the rewards? [Archive] - Glock Talk

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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
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
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 :crying:

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. :dunno:

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
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
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
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
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
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.:wavey:
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.

JMS
10-06-2012, 09:50
I suppose you could use those checks they send every month.

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

A)The checks are cash advance checks which cost you a fee plus whatever your cash advance interest rate is with no grace period (unless they are running a balance transfer offer). It would be the same as using the credit card at a machine for a cash advance, 3% fee plus 20% interest (average %'s)

B)You don't get points for using the checks.

certifiedfunds
10-06-2012, 10:33
A)The checks are cash advance checks which cost you a fee plus whatever your cash advance interest rate is with no grace period (unless they are running a balance transfer offer). It would be the same as using the credit card at a machine for a cash advance, 3% fee plus 20% interest (average %'s)

B)You don't get points for using the checks.

Gotcha

boomhower
10-06-2012, 11:34
Most lenders have stopped allowing it. Even my car lender stopped allowing it. It was nice while it last though.

Eurodriver
10-06-2012, 12:42
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.

With a $2,000 mortgage - you'd be making $8.01/mo on a 1% cash back plan.

2bgop
10-06-2012, 12:42
Just go online and set it up to pay in full automatically each month. Done.

You common sense it not welcome here. Credit cards kill more people a year than the flu.

MrsKitty
10-06-2012, 12:54
I suppose you could use those checks they send every month.

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

No, but they hit you for a hefty cash advance fee plus an extremely high intrest rate from the moment you use them (no grace period)...and almost all cards exclude them from rewards.

And JMS beat me saying it. :supergrin:

certifiedfunds
10-06-2012, 13:10
You common sense it not welcome here. Credit cards kill more people a year than the flu.

I just got a southwest rewards card for business expenses, replacing an AMEX. First thing I did after activating it was set up automatic payment.

Every bill I have is set to hit the AMEX or another form of automatic payment. In turn the AMEX is paid automatically. Best I can tell, I could die and no one would know for quite a while.

:rofl:

gbanker
10-06-2012, 13:18
For the small percentage of the financially savvy population this is a great idea. For the rest- probably not so much.

TheExplorer
10-06-2012, 13:23
I've never heard of a mortgage company taking a credit card because of the cc fee. I certainly would if I could for the cash back.

bush pilot
10-06-2012, 21:22
I purchased a new Ford van in August and tried to pay for it with an Amex card, no dice, the dealer said $3,000 was the max they would put on the card. I didn't think they would and ended up paying for it with a check.

certifiedfunds
10-06-2012, 23:02
I purchased a new Ford van in August and tried to pay for it with an Amex card, no dice, the dealer said $3,000 was the max they would put on the card. I didn't think they would and ended up paying for it with a check.

Wife did a $50,000 piece of equipment. Amex required financials but approved it. Probably not a good deal though since the manufacturer would have probably given a cash discount equal to or greater than the credit card fee. Hindsight.

econjon
10-07-2012, 11:14
With a $2,000 mortgage - you'd be making $8.01/mo on a 1% cash back plan.

$2,000 x 1% = $20

snubfan
10-07-2012, 12:34
With a $2,000 mortgage - you'd be making $8.01/mo on a 1% cash back plan.
Forgot to mention That I don't do it because my mortgage payment is only $1100 a mo. so I lose money on that deal.

$2,000 x 1% = $20
2,000 x 1% = $20 - $12.99(the fee) = $8.01

econjon
10-07-2012, 13:06
Forgot to mention That I don't do it because my mortgage payment is only $1100 a mo. so I lose money on that deal.


2,000 x 1% = $20 - $12.99(the fee) = $8.01

Missed that, thanks!

Fragman
10-07-2012, 15:21
I believe the reason most car dealers won't allow a significant amount on a credit card is not just the merchant fee (they can build that into the price anyway ), but also that if there is an issue with the product (the vehicle), with a credit card, you can dispute it and the credit card company charges back the dealer, rather than you having to duke it out with them.

It would mean that dealers would be getting a lot of chargebacks, either through those with buyers remorse making up some issue to back out of a deal, or with some actual fault on a vehicle. With cash or finance, they already have your money, so there is less incentive to fix the problem.

They probably a long time ago figured out it was more hassle than it was worth. If you had 10k cash and 10k available on a card, trust me, they would LOVE to sell you a 20k car. I imagine past experience has told them to sell the 10k car rather than the 20k if credit cards are involved.

Just a theory.


Sent from my iPhone using Tapatalk

meleors
10-07-2012, 15:25
forgot to mention that i don't do it because my mortgage payment is only $1100 a mo. So i lose money on that deal.


2,000 x 1% = $20 - $12.99(the fee) = $8.01

$20 - $12.99 = $7.01

Eurodriver
10-07-2012, 16:26
$20 - $12.99 = $7.01

Oh wow , not sure how I missed that but thanks!

bchandler
10-07-2012, 17:36
My mortgage doesn't allow it, nor does my auto lender. I use my rewards card for everything else though.

Bow Commander
10-09-2012, 22:52
Tried it today. Couldn't use debit or credit :crying:

ICARRY2
10-10-2012, 18:55
Twenty years ago I bought a motorcycle using a credit card.

The interest rate on the card was 1/3 of the interest rate of a motorcycle loan.

Crazy KD
10-10-2012, 19:36
I have never heard of any mortgage company taking a credit card and if they did I'd bet they charge you the whole transaction fee (3%). My current loan is a little over 3% so it would not make sound business sense for them to allow me to charge my mortgage on it. My guess is the $12.99 fee mentioned earlier is probably an electronic transfer fee not a fee to allow you to use a cc. When it comes to money banks are definitely not dumb.

I do use my cc for everything else though and pay it off every month. Yes I had enough to purchase a very nice firearm this year.

Bow Commander
10-10-2012, 21:22
Side note- I was going to use the credit card for emergencies only, but why waste the rewards availability?! I set the account up to be paid to zero automatically at the same time very month out of my checking account, and plan to use it for everyday things.

I think my rewards only apply to Amazon, which is great because I love Amazon, but I may look into switching to Cabela's.

milje
10-10-2012, 22:01
I'm through Wells Fargo and have never looked into this. I do know that most places around here don't take Amex, any grocery stores that do are far enough away that it negates the rewards I'd get by driving there. Mostly gas and internet purchases on that.