Times are tough, but are they so tough that you should pay your mortgage with a credit card?
The short answer is that yes, you can – but perhaps the better question is “why would you want to?”
For starters, mortgage companies frown on you paying your monthly mortgage bill with a credit card. Because of card interchange fees and the normally large payment amount, usually lead lenders to reject card payments.
But in the last few years, online mortgage payment services like ChargeSmart, which boasts a credit card payment network with hundreds of lenders like Bank of America (StockQuote: BAC), HSBC (StockQuote: HBC) and ING Direct (StockQuote: ING), allow consumers to pay their mortgages with credit cards.
- 5 Podcasts That Will Help You Build Great Credit
- How Not Driving Can Hurt Millennials' Credit Scores
- A $612 Million Strike Back in Rate-Rigging Scandal on Mortgages, Student Loans, Credit Cards
- The Next Credit Problem: Underwater Car Loans
- CPFB Plans to Give Credit Where It's Due: With the Stay-at-Homes
American Express (StockQuote: AXP) also has a program that enables its card customers to pay their mortgages with an American Express card. But the program is only for the company’s most affluent customers and it costs $400 to enroll.
But for most homeowners, using a credit card to pay off a mortgage is a bad idea.