Most mortgage lenders do not accept credit card payments directly, but you can move money from a credit card to your mortgage account through a few workarounds

Your mortgage servicer almost certainly will not let you swipe a card at closing or submit a credit card number for your monthly payment. Mortgage companies are set up to receive payments from bank accounts, checks, or wire transfers—not from credit card networks. But if you need to use a credit card to cover a mortgage payment, you have options: a cash advance, a balance transfer, or a third-party payment processor. Each one carries different costs and timelines, and some will cost you more than the mortgage payment itself.

The reason lenders avoid credit cards is simple: credit card transactions cost them a processing fee (usually 2 to 3 percent of the transaction amount). On a $2,000 mortgage payment, that fee would be $40 to $60. Lenders pass that cost back to borrowers or refuse the payment method altogether. You can work around this, but you will pay for the privilege.

Key Takeaways

  • Credit card cash advances let you withdraw money to pay your mortgage, but charge an upfront fee (usually 3 to 5 percent) plus a higher interest rate than regular purchases.
  • Balance transfer checks from your credit card issuer work the same way as cash advances and carry similar fees and interest rates.
  • Third-party payment processors like Plastiq or PayPal will accept your credit card and send the money to your lender, but charge a 2 to 3 percent processing fee on top of your payment.
  • Using a credit card to pay your mortgage should be a last resort for a single missed payment, not a regular strategy, because the fees and interest will cost far more than the mortgage payment itself.
  • If you are behind on your mortgage, contact your lender about forbearance or loan modification before using a credit card, because those programs may cost you nothing.

Cash advances: the fastest but most expensive option

A cash advance is money you borrow directly from your credit card issuer. You can get it at an ATM, at a bank teller window, or through a mobile app. The money hits your account within one to three business days, and you can then transfer it to your mortgage servicer through your bank.

The cost is steep. Most credit card issuers charge an upfront fee of 3 to 5 percent of the amount you withdraw. On a $2,000 advance, that is $60 to $100 just to get the money. Then the interest rate on a cash advance is usually 5 to 10 percentage points higher than your regular purchase APR—often 25 to 30 percent. Interest starts accruing immediately; there is no grace period like there is for regular purchases. If you carry the balance for even one month, you will owe another $40 to $50 in interest alone.

Use a cash advance only if you are one payment behind and have no other way to catch up. Do not use it as a regular payment method.

Balance transfer checks: same cost, different delivery

Some credit card issuers send balance transfer checks to cardholders. You write a check against your credit line, deposit it into your bank account, and transfer the funds to your mortgage servicer. The check arrives in the mail or can be ordered through your online account.

The fees and interest work the same way as a cash advance: an upfront fee of 3 to 5 percent, plus a higher interest rate (often 25 to 30 percent) that starts accruing immediately. The main difference is timing. A balance transfer check takes three to seven business days to arrive, then another one to three days to clear once you deposit it. If your mortgage payment is due in five days, a balance transfer check may not arrive in time.

Check your credit card statement or log into your account to see if your issuer offers balance transfer checks. Not all do. If they do, the terms (fee percentage and interest rate) are usually printed on the check itself.

Third-party payment processors: the middle ground

Companies like Plastiq, PayPal, and Square Cash act as intermediaries. You give them your credit card number, they charge your card, and they send the money to your mortgage servicer by check or ACH transfer. The payment usually arrives within three to five business days.

The fee is typically 2 to 3 percent of the payment amount, charged upfront. On a $2,000 payment, that is $40 to $60. Unlike a cash advance, you do not pay interest—you only pay the processing fee. However, the money still comes from your credit card, so if you do not pay off the card balance immediately, you will owe interest on the full amount at your regular purchase APR.

The catch: not all mortgage servicers accept payments from third-party processors. Some consider them a fraud risk or simply do not have the infrastructure to receive them. Before you sign up, call your mortgage servicer and ask whether they accept payments from Plastiq, PayPal, or other processors. If they do not, the processor will reject the transaction and refund your money, but you may lose a few days in the process.

What happens to your credit score when you use a credit card for your mortgage

Using a credit card to pay your mortgage affects your credit in two ways. First, the transaction itself does not show up on your credit report as a mortgage payment—it shows up as a credit card charge. Your mortgage servicer still reports the payment (or non-payment) to the credit bureaus based on whether they received the money, not on how you sent it.

Second, using a credit card increases your credit utilization ratio—the percentage of your available credit that you are using. If you have a $10,000 credit limit and you charge a $2,000 cash advance or payment, your utilization jumps to 20 percent. High utilization can lower your credit score by 10 to 50 points, depending on your current score and credit history. The impact is temporary; once you pay down the balance, your score recovers.

If you are already behind on your mortgage, your credit score has already taken a hit. Using a credit card to catch up will not make it worse, but it will not fix the underlying problem either.

When to use a credit card for your mortgage and when not to

Use a credit card only in these situations: you are one payment behind, you have no other source of funds, and you can pay off the credit card balance within one or two months. In this case, a third-party processor (if your lender accepts it) is cheaper than a cash advance or balance transfer check.

Do not use a credit card if you are more than one payment behind. Contact your mortgage servicer instead and ask about forbearance (a temporary pause on payments) or loan modification (a permanent change to your loan terms). These programs are free and are designed for borrowers in hardship. If you may have access to, you may be able to pause payments for three to six months, then resume at a lower amount or with an extended loan term. This costs you nothing and protects your credit better than paying with a credit card.

Do not use a credit card as a regular payment method, even if you pay off the balance each month. The fees add up quickly. On a $2,000 monthly payment, a 2 percent processing fee costs $480 per year. Over a 30-year mortgage, that is $14,400 in fees alone—money that goes nowhere near your principal.

Alternatives if you cannot pay your mortgage this month

Before you charge your mortgage to a credit card, explore these options:

  • Contact your lender about forbearance. If you have experienced a job loss, medical emergency, or other hardship, your servicer may pause your payments for three to six months. You will owe the missed payments later, but you will not be in default in the meantime.
  • Ask about a loan modification. Your lender may lower your interest rate, extend your loan term, or roll missed payments into the principal. This is permanent and costs nothing.
  • Explore a personal loan. If you have decent credit, a personal loan from a bank or credit union usually has a lower interest rate than a credit card cash advance. You can borrow the money and pay your mortgage without the 3 to 5 percent upfront fee.
  • Borrow from family or friends. If possible, this is cheaper than any credit card option and keeps the money in your circle.
  • Contact a HUD-approved housing counselor. These counselors are free and can help you understand your options. Find one at HUD.gov or by calling 1-800-569-4287.

Frequently Asked Questions

Will my mortgage servicer know I paid with a credit card?

No. Your servicer sees only the money that arrives in their account. Whether it came from your bank account, a check, a wire transfer, or a third-party processor makes no difference to them. They will record the payment and report it to the credit bureaus as normal.

Can I use a rewards credit card to earn points on my mortgage payment?

Technically yes, but the rewards will not offset the cost. A 2 percent cash-back card sounds good until you pay a 2 to 3 percent processing fee to use it. You break even or lose money. Rewards are designed for everyday purchases, not large lump-sum payments.

What if my mortgage payment is due tomorrow and I do not have the money?

Call your servicer today and explain the situation. Many servicers allow a grace period of 10 to 15 days before they report a late payment to the credit bureaus. Ask if they can extend your due date by a few days. If they cannot, a cash advance is your fastest option, but only as a last resort. Do not let a single late payment push you into credit card debt.

Does paying my mortgage with a credit card count as a cash advance or a regular purchase?

It depends on the method. A direct cash advance or balance transfer check is treated as a cash advance and charged the higher fee and interest rate. A third-party processor like Plastiq treats it as a regular purchase on your credit card, so you pay only the processing fee and your regular purchase APR if you carry a balance.

Can I use a 0 percent APR credit card to pay my mortgage?

The 0 percent rate applies only to regular purchases, not cash advances or balance transfers. If you use a third-party processor, the 0 percent rate may apply to the charge itself, but you still pay the 2 to 3 percent processing fee upfront. After the promotional period ends (usually 6 to 21 months), any remaining balance is charged your regular APR.