Which Card To Pay Rent?

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Ikarus
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Which Card To Pay Rent?

Postby Ikarus » Tue Jan 06, 2015 2:15 am

Is there a card that's good for paying rent?

The service my renters provide charges 2.8% of my rent.

Is there a card that can offset that and perhaps provide a little cash back?

Which category would rent fall under?
Merrick Bank (Hooters) 4100
Cap One Quicksilver 2800
Discover it 2500
Citi Forward 5400
Chase Freedom 1000
AMEX Blue Cash Everyday 5500
Citi Dividend 5600
Cap One Visa Platinum 750 (CLOSED)


takeshi
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Postby takeshi » Tue Jan 06, 2015 8:34 am

Not that I'm aware of. It doesn't fall under any category spend that I can think of. You could get 2% with the Fidelity AmEx or close to that with DoubleCash but obviously that is less than the service fee which isn't unusual.

5% is a loss leader in the credit world anyway. Even if you could get 5% it typically comes with a cap and/or other restrictions.

notcool
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Postby notcool » Tue Jan 06, 2015 9:44 am

I don't know of any card that would regularly give a cash back/reward large enough to offset the fee. The Quicksilver, DoubleCash or Fidelity Amex would all be good choices though as you would do (marginally) better than the typical 1%.

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kcm7
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Postby kcm7 » Tue Jan 06, 2015 9:54 am

Oh man. If I could pay rent with my card (with no fee), I'd make an extra $120 a year. My utilities company also charges a fee for credit card payments. That's another area I wish I could earn a little extra cash back.
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG

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Vattené
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Postby Vattené » Tue Jan 06, 2015 3:46 pm

I don't see you coming out ahead either. It's been pointed out, but you aren't likely to get more in rewards than the 2.8% fee. You are very likely to be better off paying cash (or check) for anything that adds on a fee for credit card payments. Generally speaking, companies add these on to offset the transaction fees for credit cards, and credit card companies only give you a cut of this in the form of rewards (notwithstanding the 5% loss leader categories) - they have to make money after all.

So, I would bet it would be beneficial not to pay the rent with any credit card. A couple caveats:
  • There may be a travel card with a rewards program that can get you 3% back or more on your spending. Perhaps you know you can reliably get 3+ cents out of every UR point, for example. This is the case for some, but it is not the rule. The rate you get back on your spending will vary based on your redemption. To get that much out of UR you typically have to hunt for a deal, be traveling the right route at the right time, and be getting first class seats/upper tier hotels/etc. anyway.
  • It may be worth it just to get to a spending threshold. Your regular rewards may be offset by a 2.8% fee, but you may be willing to accept that fee in order to put enough spending through the card if it means qualifying for an introductory bonus.

As far as how it is categorized, that really depends on how they are set up as a merchant with the credit card issuer, and it could differ from card to card.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

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nismoZtuner
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Postby nismoZtuner » Tue Jan 06, 2015 3:57 pm

discover checking maybe?
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710
BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]
American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]
Chase Sapphire Preferred[7.3]
Inquires: TU(?) EX(?) EQ(?)
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Ikarus
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Postby Ikarus » Wed Jan 07, 2015 1:22 am

Having gone back to the site tonight, I can see the benefits:

- no monthly minimum (after $25 initial deposit)

- $0.10 cashback for each transaction

- online transfer from an external bank account to your Cashback Checking Account (not sure if there's a fee for this - wire transfers are $30)

I pay rent by money order (+ $1.50) and pay electric by accepting the $2.50 monthly charge. Right off the bat I could go from losing $48/year to gaining $2.40/year.

That said, I think Capital One 360 checking might be better. And there is a local 360 branch, as well.

I don't give out checking account and routing info for brick and mortar banks, but might be okay doing that for online banks that I fund on an as-needed basis.

How do you guys approach this?

nismoZtuner wrote:discover checking maybe?
Merrick Bank (Hooters) 4100
Cap One Quicksilver 2800
Discover it 2500
Citi Forward 5400
Chase Freedom 1000
AMEX Blue Cash Everyday 5500
Citi Dividend 5600
Cap One Visa Platinum 750 (CLOSED)

Brad Bishop
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Postby Brad Bishop » Wed Jan 07, 2015 6:02 am

I actually print off a check each month and specifically had it to the lady in the leasing office.

I used to just have it sent from my bank via the "pay your bills" section online but one time, a few years back, I sent it to be received (as always) well before the 1st of the month (Sept 25, I think it was supposed to be received) and got a call from the leasing office on the 3rd with the question of, "Where's our rent?" They knew I always paid a week or so early so they let me slide but the problem was that I had to get them a check RIGHT THEN and I was off in the wood on a hike. So I scrambled back and cut them a check just before they closed.

They got my scheduled rent check, with the Sept 25 date on it, sometime in mid-October (I think it was close to the 15th - nearly a month after it was supposed to have arrived). They called me and handed it back.

The problem is that, at the time, they had a "market price" clause in the leasing contract. It's a stupid little game where they say, "The apartment is worth $800/mo but we're giving it to you as a courtesy for $725/mo (which is the actual market price because that's what you're leasing it for) with the agreement that you'll always pay your rent on time. If you're late in your rent then we can charge you the original market price all the way back to the beginning of your lease."

So, technically, had they wanted to be jerks about it, they could have said, "Oh, your new rent is $800/mo plus you owe use $75/mo for the last 6mo because you failed to pay your rent on time," all because the check literally got lost in the mail.

Since then, I print it out and hand it to them so there are no questions.

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Vattené
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Postby Vattené » Wed Jan 07, 2015 3:47 pm

Brad Bishop wrote:I actually print off a check each month and specifically had it to the lady in the leasing office.

I used to just have it sent from my bank via the "pay your bills" section online but one time, a few years back, I sent it to be received (as always) well before the 1st of the month (Sept 25, I think it was supposed to be received) and got a call from the leasing office on the 3rd with the question of, "Where's our rent?" They knew I always paid a week or so early so they let me slide but the problem was that I had to get them a check RIGHT THEN and I was off in the wood on a hike. So I scrambled back and cut them a check just before they closed.

They got my scheduled rent check, with the Sept 25 date on it, sometime in mid-October (I think it was close to the 15th - nearly a month after it was supposed to have arrived). They called me and handed it back.

The problem is that, at the time, they had a "market price" clause in the leasing contract. It's a stupid little game where they say, "The apartment is worth $800/mo but we're giving it to you as a courtesy for $725/mo (which is the actual market price because that's what you're leasing it for) with the agreement that you'll always pay your rent on time. If you're late in your rent then we can charge you the original market price all the way back to the beginning of your lease."

So, technically, had they wanted to be jerks about it, they could have said, "Oh, your new rent is $800/mo plus you owe use $75/mo for the last 6mo because you failed to pay your rent on time," all because the check literally got lost in the mail.

Since then, I print it out and hand it to them so there are no questions.

That is what I hate about mailing in checks; I avoid it whenever I can but there are a few bills where that is my only option. Many people in older generations (I have my parents in mind specifically) are scared of internet payments or even credit card transactions, but the opposite makes me nervous. I much rather pay online and take a screenshot so I have some kind of confirmation directly from the company and proof of payment should I need it later. Mailing a physical check runs the risk of getting lost in the mail (or them just claiming it wasnt received in time), so it turns into your word against theirs...and there is only one way that ever goes.

That market rate story is pretty funny (or it would be if it weren't such a convoluted way to get some extra fees out of people WHILE making it seem like they're giving you a discount). So would EVERYONE start out renting at below this set "market rate?" Makes you wonder how they make any money if they're rent out to everyone below it :ppp
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

ingramjuan
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Postby ingramjuan » Thu Jan 08, 2015 5:39 pm

I have used my quicksilver card before, not sure if one card out there is best for rent.
CARDS:
Capital One Platinum (2001) |Capital One QuickSilver World (2002) | Amex Gold Delta (2013) | Best Buy Visa (2013) |Discover It (2015) | Amex Platinum (2015)

Gardening Since: June, 2015

Next Cards:
Personal: Chase Freedom Unlimited
Business: Amex Plum
Store Card: Lowes



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