Author Topic: Paying rent with credit card to earn sign up bonuses. Worth $40 convenience fee?  (Read 1375 times)

fizzgig

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I was considering using about 4 cards per year that I would pay my rent with to earn the sign-up bonus on a few cards. If I use a credit card to pay my rent online, it's $40 extra. I've never tried using the bonus points thing before, I assume I would use them for mostly hotels, cash back, or occasional air fare. Is it worth paying $480 a year in convenience fees to earn about 4 different sign up bonuses? Can I expect a much greater value on the points earned? My rent is 1825 per month.
« Last Edit: January 31, 2018, 08:35:07 AM by fizzgig »

netskyblue

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Without knowing how much your rent is or how much you get back in points, that's an impossible question to answer.

If it's a 2% rewards card, and your rent is $2000, you'd be breaking even.  (2% of $2000 is $40)

GizmoTX

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No, a 'convenience fee' is rarely worth it, especially $40. Find other expenses that don't charge a fee to get a credit card bonus.

boarder42

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Nope see my signature - it will show you how to make money meeting your sign up bonuses not cost you dough!

netskyblue

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At $1825 rent, you'd be charging $1865 with the convenience fee.  Anything less than ~2.15% rewards and you'd be losing money.

Catbert

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If you get 4 new cards a year and only use the cards in order to meet the minimum spend, it could be worth it.  But it really depends on what cards your getting, how much the bonus is, and what you plan/hope to do with the money.

For example, let's say there is a card with a 50,000 point bonus for a 4K spend in 3 months.   Let's further say that each point is worth 1 cent if redeemed for cash (more if you use it for travel) so that the bonus is worth at least $500.  If your normal spend on the card could generate $1K a month (3K in 3 months) then charging one month's rent for $40 is totally worth it.

But it's a math problem and you haven't given us enough info.

MrGville

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I did what you are describing last year to meet minimum spend for sign up bonuses.  After earning the bonuses, I stopped using my cards to pay rent.  I wouldn't have met the minimum spend for bonus without using card to pay rent.  I got much more value out of the bonus than the $100 i paid in convenience fees over the 4 months i paid rent with my credit card.  I have an Amex Delta card, and got a 60,000 mile bonus after meeting minimum spend requirements.  This got me a round trip ticket to Europe, which cost much more than convenience fees for paying rent with card.  Bottom line...could be worth it to use card to pay rent if it helps you meet minimum spend thresholds for sign-up bonuses, but is most likely not worth it after bonus has been earned. 

boarder42

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i'd still submit its never worth it learn to MS and make money hitting your rewards.

kpd905

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I would do it if you can use it to hit a few sign up bonuses that you may not have been able to hit otherwise.  This is what I am doing with daycare expenses right now.