You can pay your Florida mortgage with a credit card, but whether you should is a completely different matter. For some consumers, it could be simple and even advantageous. For others, it is probably not a good idea.
In one case that comes to mind, a young mother has been paying her mortgage by using a credit card for almost three years. Although she doesn’t get any reward points or frequent flyer miles, the card she uses does offer a 2% cash back, and she has been very successful at using it to pay her mortgage payments and not having to pay any extra fees or interest charges. The card she uses has an online bill paying option. She has her mortgage payment set up on this bill paying service, and it is automatically paid on time each month. Instead of being treated as a cash advance, her payment through the service is treated as an ordinary purchase and isn’t assessed any higher interest fee. This is really of no consequence to her, though, since she also has it set up through her credit card and bank checking account to automatically pay the full balance of her credit card each month on its due date. This works out great for her since she has both her mortgage payment and her credit card payment paid automatically each month and never has to worry about late payments.
Another thing that works to her advantage is that she charges the month’s mortgage payment to her credit card on the first of that month, but her actual credit card bill isn’t due until the middle of the following month, so she basically always has one interest free monthly payment at her disposal. That money can be earning interest for the month and a half between paying the mortgage and the credit card.
So, in this young woman’s case, paying her mortgage payment by credit card has worked to her advantage. Others have done it with favorable results such as earning points or frequent flyer miles as well as cash back bonuses. Caution needs to be utilized, though, to make sure you don’t end up paying lots of extra charges and fees. Payments have to be made on time, too, to avoid a sudden increase in the interest rate you pay on your card balance.
If you are not able to pay off the balance on your card each month, this may not be a good choice for you. You will end up paying interest on your original mortgage loan as well as interest on your credit card balance.
Some credit cards will treat mortgage payments as a cash advance, or if you take out a cash advance to make your mortgage payments, you will be charged a much higher interest rate. Again, in this case, using a credit card to pay your mortgage payments might not be a smart thing to do.
Whether or not paying your mortgage with a credit card is a good option for you is going to be up to you with the focus on your own particular situation. Do be sure you know the rules of your mortgage lender when it comes to using a credit card and the conditions you need to adhere to. Also, know what the advantages and disadvantages are, and if there is any chance your credit score will suffer. Be sure to do your research and run the numbers before you make your decision to pay by credit card.
This article was written by Philip Russel. Philip helps to run and maintain CreditDonkey.com, which helps guide people to their best options forbusiness credit cards