Choosing a card
Can You Pay Rent With a Credit Card in Canada?
Most landlords do not take credit cards directly, but third-party payment services can charge your card and send the landlord a transfer, for a fee. When the rewards beat the fee, and when they do not.
Can I pay rent with a credit card?
Sometimes. Few landlords accept cards directly because they pay merchant fees, but several Canadian payment services let you pay rent by card and then send the money to your landlord by e-transfer, cheque or direct deposit.
These services charge a fee, usually a percentage of the rent, and some card issuers treat the payment as a regular purchase while others may code it differently. Check both before you rely on earning rewards.
Put it into practiceFind My CardIs paying rent by credit card worth the fee?
Only if your card earns more on the payment than the service charges. A 2.5% fee on a card earning 1% loses money every month; a lower fee on a card earning 2% or more can come out ahead.
| Service fee | Fee on $2,000 | Net at 1% back | Net at 2% back | Net at 3% back |
|---|---|---|---|---|
| Top1% | $20 | $0 | $20 | $40 |
| 1.75% | $35 | −$15 | $5 | $25 |
| 2.5% | $50 | −$30 | −$10 | $10 |
| 3% | $60 | −$40 | −$20 | $0 |
The table shows the monthly result on $2,000 of rent at different fee and reward levels, before any welcome bonus. Most rewards cards pay their base rate on this kind of payment, not a bonus category rate.
When does paying rent by card make sense?
Mainly to meet a welcome bonus minimum spend. If a card offers a large bonus after a few thousand dollars of spending, one or two rent payments can unlock it for the price of the fee.
Work out the bonus value and subtract the fees you pay to reach it. Check that the issuer counts the payment toward the minimum spend; some exclude money transfers and similar transactions.
What are the risks?
Interest and credit utilization. Rent is a large monthly amount: if it pushes your balance past what you can pay in full, interest at around 20% wipes out any reward immediately.
A large rent charge can also raise your credit utilization for that statement, which can lower your score temporarily even if you pay it off. Make sure the payment reaches your landlord on time; ask the service how many business days it takes.
What are the alternatives?
Pay rent by e-transfer or pre-authorized debit from chequing, and use a credit card for spending that earns bonus rates, such as groceries and gas.
If you want rent to help your credit history, ask whether your landlord or a rent-reporting service can report on-time payments to a credit bureau. That works without any card fees.
Keep reading
RewardsHow Credit Card Welcome Offers WorkRead bonus qualifications, fee-waiver conditions and dates before comparing an introductory offer.
RankingsBest Cash Back Credit Cards in CanadaEvery Canadian cash back credit card ranked in dollars. Top first-year value: BMO CashBack World Elite Mastercard ($1,049). Best every year after: SimplyCash Preferred Card from American Express ($516 net).
Credit scoresHard vs Soft Credit Checks in CanadaWhat counts as a hard or soft credit inquiry in Canada, which one can lower your score, how long inquiries stay on your Equifax and TransUnion reports, and how to shop for a loan without extra damage.
Choosing a cardHow Many Credit Cards Should You Have in Canada?Why two or three cards is the sweet spot for most Canadians, which combinations earn the most, and when more cards stop helping.
Official sources and further reading
Terms vary by product. Confirm the provider’s current terms before acting. This guide does not predict approval, realized value or credit-score changes. How WalletReturn calculates value