Can I Make My Mortgage Payment With a Credit Card?

Can you use a credit card to pay your mortgage? While the immediate appeal of using a credit card for such a significant expense is understandable, the reality involves various complexities and considerations. Understanding the nuances of how mortgage payments are processed and the financial implications of using credit is important before pursuing this option.

Direct Mortgage Payment Options

Most mortgage lenders do not accept direct credit card payments. This policy stems from the substantial processing fees associated with credit card transactions, which typically range from 1.5% to 3.5% of the transaction amount. If a lender accepted credit card payments, these fees would reduce the net amount received, potentially leaving the payment short of the required mortgage obligation. Mortgage companies also discourage using one form of debt to pay another, especially when the latter carries a significantly higher interest rate.

Few exceptions exist where a direct credit card payment might be allowed, often accompanied by additional fees charged by the lender to offset processing costs. Even in rare instances, the credit card issuer itself may have restrictions against such transactions. Consequently, paying a mortgage directly with a credit card is not a widely available option for most homeowners.

Using Third-Party Payment Services

Since direct payments are typically not an option, many individuals explore third-party payment services that act as intermediaries. These platforms facilitate mortgage payments by charging a user’s credit card and then remitting the funds to the mortgage lender. The service usually sends the payment via an Automated Clearing House (ACH) transfer or a physical check to the lender on the user’s behalf.

To set up a payment through these services, users provide their mortgage account details, credit card information, and the specific payment amount. The third-party service then processes the credit card transaction and transfers funds to the mortgage servicer. These services typically charge a fee, often a percentage of the transaction amount.

For example, a common fee charged by services like Plastiq is approximately 2.9% of the payment. While many credit card types are accepted, some services may have restrictions, such as not accepting certain card networks like Visa or American Express for mortgage payments. The time it takes for the payment to reach the mortgage lender can vary, so scheduling payments in advance is advisable to avoid late fees.

Financial Considerations of Credit Card Payments

Beyond service fees charged by third-party platforms, using a credit card for mortgage payments introduces financial implications. A primary concern is the high interest rates associated with credit cards. The average annual percentage rate (APR) for credit cards can range significantly, with recent averages around 21.95% as of February 2025 and 23.99% in August 2025. This rate is substantially higher than typical mortgage interest rates.

If the credit card balance incurred from a mortgage payment is not paid in full by the due date, interest charges will accrue rapidly. For someone with average credit, interest rates can be around 24.35%, while those with lower credit scores might face rates as high as 27.92%. Carrying a large balance at these rates can quickly lead to significant interest expenses that may far exceed any potential benefits, such as credit card rewards or cash back. This accumulation of high-interest debt can create a cycle where a homeowner pays much more for their mortgage than initially intended.

Impact on Credit Profile

Using a credit card to cover a mortgage payment can impact an individual’s credit profile, primarily affecting their credit utilization ratio. This ratio represents the amount of credit used compared to the total available credit. A large mortgage payment charged to a credit card can significantly increase this ratio, consuming a substantial portion of the available credit limit. Credit scoring models consider credit utilization a significant factor, often accounting for up to 30% of a FICO score.

A high credit utilization ratio, generally above 30%, can signal increased risk to lenders and decrease one’s credit score. Even if the payment is made on time, elevated utilization can negatively affect the score temporarily. While consistent, on-time mortgage payments directly to a lender positively contribute to a credit history, a single missed or late payment on the credit card used for the mortgage can severely damage the credit score. This negative impact can persist for an extended period, making it more challenging to secure favorable terms on future loans or credit.