Credit Card bill pay service to pay my mortgage?

[Cal166]

Is there such a website that takes your credit card and use it as bill pay service so you can pay your mortgage?

What I am trying to do is use my credit card to pay my mortgage and earn points at the same time.

I know there are checks that credit card companies gives out but that carry a fees, I would like to avoid that.

Anyone uses their credit card to pay their mortgage?

 

[summit]

I believe you can't pay debt with debt. It would be similar to paying a credit card with another credit card. Unless your mortgage company allows for fee free credit card transactions, I doubt it would be possible.

 

[goog40]

The fees would be greater than your rewards.

 

[MJinZ]

I believe you can't pay debt with debt. It would be similar to paying a credit card with another credit card. Unless your mortgage company allows for fee free credit card transactions, I doubt it would be possible.

Sure you can. That's what balance transfers and refinancing are. If someone is willing to take on the risk of your debt at a lower cut (interest or fees), then they will offer it to you. The interest you pay is money someone wants to earn from you.

Of course, unless whatever you are trying to pay off is at a huge interest rate, then transaction fees and the like will probably kill any benefit of doing this.

 

[summit]

Sure you can. That's what balance transfers and refinancing are. If someone is willing to take on the risk of your debt at a lower cut (interest or fees), then they will offer it to you. The interest you pay is money someone wants to earn from you.

Of course, unless whatever you are trying to pay off is at a huge interest rate, then transaction fees and the like will probably kill any benefit of doing this.

He was saying without fees.

 

[duragezic]

I don't think you can unless the mortage company accepts credit cards. The bill pay services I see are for places like utilities and such where they accept credit card payments anyway. Though I've never used such services (always seem them as an unnecessary middleman).

I like to pay for my rent with a CC since even at 1% it's $7 in rewards for nothing. But the company doesn't accept them; I guess they don't want to take the processing fee hit.

What's the fee on personal check processing? I normally only write checks for rent and paying others, but last time I got a haircut I tried to write one (I thought they didn't accept cards) and they stopped me. They didn't accept them since thought due to high fees and not because of bounced checks.

 

[tk149]

What's the fee on personal check processing? I normally only write checks for rent and paying others, but last time I got a haircut I tried to write one (I thought they didn't accept cards) and they stopped me. They didn't accept them since thought due to high fees and not because of bounced checks.

I worked in Deposit Operations for a bank, and we did not charge any fees for processing checks. I can't speak for your hair stylist's bank, but I suspect that they were just trying to avoid telling you that they weren't accepting any checks because they had been burned by too many bounced checks. Some people take it personally if their checks are accepted.

 

[dullard]

The bank that services your mortgage is just skimming off the profits (they've already sold the debt long ago to an investor and now they are doing a service for the investor in collecting your money). There isn't much profit per mortgage payment, but if you add up many payments for many mortgages, it is a good business to be in.

However, if you suddenly add in a ~3% credit card fee per transaction, then you suddenly destroy their whole profit.

For example, a $200,000 mortgage probably earns the servicing bank maybe $100/payment. That same mortgage with tax and escrow will have about $1500/month payments. If the bank pays the credit card company 3% of $1500, then they'd pay $45/payment straight to the credit card company. You are asking them to instantly take half of their revenue and give it to another company. Then add in their costs, and the bank would probably be making a loss if they accepted credit cards.

No bank will do that, at least not for long. They certainly don't care about you getting $10 in rewards, and if they did, they wouldn't give up $45 just for you to get $10.

 

[Pantoot]

I worked in Deposit Operations for a bank, and we did not charge any fees for processing checks. I can't speak for your hair stylist's bank, but I suspect that they were just trying to avoid telling you that they weren't accepting any checks because they had been burned by too many bounced checks. Some people take it personally if their checks are accepted.

Most banks do charge fees, but it is usually on the order of $.50 per deposited item, over a certain amount (like the first 300 are free).

They will also charge you to deposit cash, like $.20 for every $100 over $5000.

YMMV will vary, there are dozens of checking packages at any given bank, and each have different fee schedules.

 

[Saimon]

FIA (Bank of America) cards have a bill pay service, at least the Schwab card does, which will let you pay other accounts including credit cards and mortgages.

While this means you can pay bills like credit cards and mortgages without any fees on the card, you won't get any rewards for using it this way. Only select "In Network" merchants give rewards, and they usually aren't other credit cards or loans.

I don't believe there's any service out there that will let you pay a mortgage without fees while getting rewards.

 

[illusion88]

Of course if you missed a CC payment you would be paying interest on top of interest. That would suck.

 

[Trianon]

and AFAIK, no rewards on cash advances and convinience checks and other similar transactions.

 

[FleshLight]

There are but they have a 3.5% surcharge IIRC. The best rewards you'll get is 2% from Fidelity or Schwab.