Any reason to NOT start paying my rent with my new disco?

[Anonymous]

I would have never considered paying rent with a credit card before. However, now that i am further into my rebuild, I am getting cards with better rewards programs. 

I just finally got approved for a discover IT, and got it in the mail a few days ago. 

I got an email today about CashBack Match. So i will get 1% back now (for anything not covered by the 5% catagories), then a year from now however much i earned i will get matched. 

My rent is $1255, and i currently autopay through a website with my bank account. It will let you use a credit card, but it charges a $9.99 fee to do so. 

So If i start paying with my discover card and then immediately paying it off, i would get $12.65 back, plus $12.65 matched at the end of the year. 

So for a fee of $9.99 I can get back $25.30 for a net of $15.31 per rent payment. If i do this for the 11 remaining months of my cashback match that is a free $168.41 to pay my rent with my disco card for the next 11 months. 

Why wouldnt I, right? Can anyone think of any reason that I am not considering why I shouldnt do this?

[Anonymous]

I can't think of any reason not to do it. Go for it!

[K-in-Boston]

I love it when flat rates work out to less than the rewards! I pay my electric bill that way during the summer months, as well. No reason not to as long you pay your Discover bill in full each month and a great way to show them legitimate spend.

[Gmood1]

I do the same for mortgage and electric bill. Both have fee's for using CC's. The cash back is higher than the fees. As K says it will help build some good payment history and internal score with that lender. I get charged a $2.28 fee for using a CC to pay the electric bill. So I charge the max, which is $600 and pay the bill out for several months using my Blispay card. Since I have 6 months to pay it. I pay the balance right before I charge it again. Just over $12 cash back for a $2 fee ain't bad, for something I have to pay anyway.

[Anonymous]

I love to beat the fees. My favorite is the IRS with 1.89% fee and I get 2.% back (Citi DC)   My local electric co charges a fee of 2.2 % but for some of our short term projects for the biz we have to have service at a new short term location and some of them have -0- fee. So we charge it. 

[Anonymous]

I always pay my cable bill with cc.

[longtimelurker]

---

@Anonymous wrote:

I would have never considered paying rent with a credit card before. However, now that i am further into my rebuild, I am getting cards with better rewards programs. 

I just finally got approved for a discover IT, and got it in the mail a few days ago. 

I got an email today about CashBack Match. So i will get 1% back now (for anything not covered by the 5% catagories), then a year from now however much i earned i will get matched. 

My rent is $1255, and i currently autopay through a website with my bank account. It will let you use a credit card, but it charges a $9.99 fee to do so. 

So If i start paying with my discover card and then immediately paying it off, i would get $12.65 back, plus $12.65 matched at the end of the year. 

So for a fee of $9.99 I can get back $25.30 for a net of $15.31 per rent payment. If i do this for the 11 remaining months of my cashback match that is a free $168.41 to pay my rent with my disco card for the next 11 months. 

Why wouldnt I, right? Can anyone think of any reason that I am not considering why I shouldnt do this?

---

Should be fine (providing they take Discover of course!)   And once the first year is over, no reason not to use any of the 2% cards, which have the advantage of doubling the cash back much quicker.

[Anonymous]

My rent is 1258 a month but the billing company would charge $35 for the joy of paying the bill. They even charge a $1 fee to allow you to pay by e-check. You cant even write them a check which sucks.

[Noctilum]

I pay all rent and utilities with my card.  None of them take Amex though, so it sucks because its a great way to meet bonus spend.  But either way I charge at least $1300 a month between rent and utilities alone so its a good amount of UR points in the end when I pair with my CSR.

[Anonymous]

OP, using your new Discover card to pay your rent is a great thing.  Yes, you'll get those rewards like you said which turn into a good amount of free money over the course of the year.  Another thing though, adding $1200+ to your monthly spend on the card on a new Discover account will definitely help you grow the card big.  Many people report getting CLIs in months 4-6 and one of the factors considered in your card growth is what you are spending on it monthly.  Rent/mortgage no doubt is likely your biggest expense monthly, so throwing it on a rewards card if possible is a solid idea.