Most mortgage lenders do not accept credit card payments directly, but you have workarounds

Your mortgage servicer almost certainly will not let you pay your monthly bill with a credit card. Mortgage companies are set up to receive payments by bank transfer, check, or their own payment portal — not plastic. If you try to call and offer a credit card number, they will tell you no.

That said, you can move money from a credit card to your mortgage account through a third party. The most common route is a cash advance from your credit card (which you then deposit to your bank account and transfer to your mortgage), or a balance transfer check if your card issuer offers one. Both come with costs and risks that make them expensive compared to paying directly from a bank account.

The real question is not whether you can do it, but whether you should — and the answer depends on why you are considering it in the first place.

Key Takeaways

  • Mortgage servicers do not accept credit card payments, so you would need to convert the credit card funds to cash or a bank transfer first.
  • A cash advance from your credit card typically costs 3 to 5 percent of the amount withdrawn, plus a higher interest rate than regular purchases.
  • Balance transfer checks work the same way as cash advances and carry similar fees and interest rates.
  • If you are behind on your mortgage, contact your servicer about forbearance or loan modification before taking on credit card debt.
  • Using a credit card to pay a mortgage makes sense only in narrow situations, such as earning rewards on a large payment you were going to make anyway.

How cash advances and balance transfer checks work

A cash advance is when you withdraw money from your credit card at an ATM or bank teller, treating your card like a debit card. The money goes into your hand or your bank account, and you can then transfer it to your mortgage servicer. Your card issuer charges you a fee — usually 3 to 5 percent of the amount — right away. Interest accrues immediately at a rate higher than your regular purchase APR, often 20 to 30 percent, and there is no grace period like there is for regular purchases.

A balance transfer check is a check your credit card issuer mails to you, drawn on your credit line. You deposit it into your bank account and transfer the funds to your mortgage servicer. The fees and interest rates are identical to a cash advance: an upfront fee of 3 to 5 percent, plus a higher APR with no grace period.

Both methods convert your credit card balance into a debt that costs you money before you even make a payment. On a $10,000 cash advance at 4 percent, you owe $400 immediately, plus interest on the full $10,000 at 25 percent APR. That is $208 in interest in the first month alone if you do not pay it off.

When paying with a credit card might make sense

There are a few narrow situations where the math works in your favor. The most common is when you are earning a sign-up bonus or high rewards rate on a credit card and you were going to make a large mortgage payment anyway — for example, paying a lump sum from a bonus or inheritance. If your card offers 2 percent cash back and your cash advance fee is 3 percent, you lose money. But if you can charge the payment as a regular purchase (which most servicers will not allow) and earn 5 percent back, the rewards might offset the fee.

The catch is that mortgage servicers do not accept credit card payments directly, so you cannot earn rewards on the payment itself. You would have to take a cash advance or use a balance transfer check, which means you pay the fee no matter what. The rewards do not cover it.

Another scenario is if you have a 0 percent balance transfer offer and you are certain you can pay off the balance before the promotional rate ends. If your card offers 0 percent for 12 months with a 3 percent transfer fee, and you can pay $10,000 in 12 months, your total cost is $300. That is still more expensive than paying from a bank account, but it is cheaper than paying interest at 25 percent.

What to do if you are behind on your mortgage

If you are considering a credit card payment because you are short on cash or behind on your mortgage, taking on credit card debt will make things worse, not better. Credit card interest rates are much higher than mortgage rates, and missing a credit card payment damages your credit score faster than missing a mortgage payment.

Contact your mortgage servicer instead and ask about forbearance — a temporary pause or reduction in payments — or a loan modification, which changes the terms of your loan to lower your monthly payment. Both are free and designed for situations exactly like this. Your servicer is required by law to consider your request if you are behind or at risk of falling behind.

If you have already missed payments, forbearance can pause collections while you catch up. If your payment is simply too high, a loan modification can spread your arrears over the remaining life of the loan or lower your interest rate. Neither option damages your credit the way a credit card default does.

Third-party payment services and their costs

Some online payment platforms allow you to pay your mortgage with a credit card and handle the transfer for you. Services like Plastiq or Venmo charge a fee — typically 2 to 3 percent — to process the transaction. This is cheaper than a cash advance fee but still costs you money, and you still owe credit card interest on the balance.

These services are useful if you need to pay a bill that does not accept credit cards and you want to earn rewards or float the payment for a month. For a mortgage, where you are paying the same amount every month and have a direct payment option, the fee is an unnecessary expense.

How to set up a direct mortgage payment and avoid credit card fees

Your mortgage servicer offers at least two free payment methods: automatic bank transfer (also called autopay) and one-time transfers through their website or phone line. Both pull money directly from your checking or savings account and cost nothing.

To set up autopay, log into your servicer's website or call the number on your mortgage statement. You will need your bank account number and routing number. Autopay usually takes effect within one or two billing cycles and removes the risk of forgetting a payment.

If you prefer to pay manually, you can transfer money through your servicer's website, by phone, or by mailing a check. Checks take 5 to 7 business days to clear, so mail early if you are close to your due date. Bank transfers through the servicer's website or phone line usually post within one business day.

Frequently Asked Questions

Can I use a rewards credit card to pay my mortgage and earn points?

Not directly — mortgage servicers do not accept credit card payments. If you use a cash advance or balance transfer check to fund the payment, you pay a fee that usually exceeds any rewards you would earn. The only exception is if your card offers rewards on cash advances, which is rare and usually a lower rate than purchase rewards.

What if my credit card has a 0 percent introductory rate?

A 0 percent rate applies only to the balance itself, not the upfront fee. A balance transfer check with a 3 percent fee costs you $300 on $10,000, even if the interest rate is 0 percent for 12 months. You would need to pay off the full amount before the promotional period ends to avoid interest charges on top of the fee.

Will paying my mortgage with a credit card hurt my credit score?

Taking a cash advance or balance transfer increases your credit card balance and your credit utilization ratio, which can lower your score temporarily. If you carry the balance and pay interest, the damage is larger. Paying on time from a bank account has no negative effect on your score.

What happens if I cannot pay back the credit card balance?

Missing a credit card payment triggers late fees, a higher interest rate, and damage to your credit score within 30 days. Missing a mortgage payment is also serious, but the timeline is longer — usually 120 days before foreclosure proceedings begin. Using a credit card to pay your mortgage trades a slower, more manageable problem for a faster, more expensive one.

Are there any situations where this actually saves money?

Only if you can charge the payment as a regular purchase (not a cash advance) and earn rewards that exceed any fees. Since mortgage servicers do not accept credit cards directly, this is not possible. The only way to use a credit card is through a cash advance or balance transfer, both of which cost more than they save.