Credit Cards

[FreshWes]

 My apartment complex lets me pay my rent ($2100) on a credit card one time. I normally do direct debit.

I currently have two credit cards and pay them off every month. I was thinking about a getting a third to increase my credit to debt ratio.

I want to pay my rent, and then pay off immediately.Should I do this?

If so, should I do it on my existing Citi Diamond Preferred Rewards Card?

OR - Should I open another rewards credit card (increasing my credit to debt ratio)?

Thank you! I am new and I love this site!

[Uborrow-Upay]

DON'T use ANY credit card, new or otherwise, to pay your rent now. It's pointless and completely unneccessary.

Continue to pay your rent as you have been doing, and save that "one-time" only rent by credit card payment for some time when you may actually need it.

Welcome to the forum, FreshWes! Glad you're here.

[barbaralee]

Heh. Honestly, I would love to pay my mortgage wth my CC. We pay all of our utilities, cable, phone, etc on a rewards card just for that. If we could pay our mortgage as well we'd be really pulling in the rewards.

[FretlessMayhem]

Hi FreshWes, welcome to the forums!

Opening another CC won't hurt but so much from the inq and new account. If it will help your util substantially I say go for it. 

Also, I would absolutely love to be able to pay my mortgage on a CC every month. Even on a standard 1% cash back card, at $2100 you'd be making $21 just from paying with it. If they let you, I don't see any reason why you shouldn't. 

[Chopbrocoli]

Fresh, is the apt also charging you like a 2-3% processing fee for the CC payment? If so, its not worth it and stick to direct debit. The thing is if they charge you the processing fee, your cost will exceed the bennefit when it comes to accruing and redeeming points.

[score_building]

as a pif customer it may not be a big concern, but i'd imagine the possibility of it raising a red flag with the cc lender as 'out of pattern' spending does exist.

[Creditaddict]

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Uborrow-Upay wrote:

DON'T use ANY credit card, new or otherwise, to pay your rent now. It's pointless and completely unneccessary.

Continue to pay your rent as you have been doing, and save that "one-time" only rent by credit card payment for some time when you may actually need it.

Welcome to the forum, FreshWes! Glad you're here.

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If poster pays in full, why would you not take advantage of the rewards of charging something you are paying for anyway each month. My partner can pay is Car loan with a credit card, I told him he ABSOLUTELY had to do this!

Message Edited by Creditaddict on 03-12-2009 12:26 PM

[Uborrow-Upay]

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Creditaddict wrote:

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Uborrow-Upay wrote:

DON'T use ANY credit card, new or otherwise, to pay your rent now. It's pointless and completely unneccessary.

Continue to pay your rent as you have been doing, and save that "one-time" only rent by credit card payment for some time when you may actually need it.

Welcome to the forum, FreshWes! Glad you're here.

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If poster pays in full, why would you not take advantage of the rewards of charging something you are paying for anyway each month. My partner can pay is Car loan with a credit card, I told him he ABSOLUTELY had to do this!

Message Edited by Creditaddict on 03-12-2009 12:26 PM

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CreditAddict, I would agree with you and other responders here if the OP could pay his rent via credit card EVERY month.  I'd be right there with the plastic for the rewards, too.

However, the OP says that they allow him ONE payment, period.  Only one.  That being the case, I would save that one-time-only cc rent payment for an emergency situation where cash is short.  If no such emergency ever happens, then make the final month's rental payment with the credit card.

IMO, it's better to have the rent safety net in place for the entire time of the lease than collecting twenty bucks or so in rewards right now.

[CreditCardWhore]

I would app a new 0% APR card with rewards and a sign-up bonus - say a Discover Miles - charge the rent payment to that.  Take the saved cash and put it in e-trade for 6mths while making the minimum payments.  Use the rest of the CL for day-to-day stuff and put that money in the e-trade account and in 6 month PIF.  You get a sign-up reward, some good purchase rewards and earn some interest for 6 months.  You even have an emergency fund for 6 month should for some reason you need to tap that cash.

[marty56]

IMHO I would not make any large charge on a credit card these days even if you will PIF and have a history of PIF.  If I wanted to make a major purchase, I would call National City and let them know how much and when I was going to PIF and ask them to log the info in my account record.

LOL If I was a CCC and was reviewing Marty's account that just used his CC to pay his mortgage, I would think the he wanted an AA.

Message Edited by marty56 on 03-13-2009 04:04 PM