The name of this travel hacking game is accruing as many miles/points as you can. You accrue by making purchases on your travel miles/points rewards cards, and the bigger your travel miles/points balances pile up, the more options you have when it comes to traveling when you want to, how you want to, and where you want to!
The single biggest recurring monthly expense for most of us these days, is either our rent or mortgage payments. Thus, "Can I pay my mortgage/rent with my credit card?" is one of those long-standing questions that has been around since, I'm guessing, the advent of rent, mortgage payments, and credit cards. At one point, this was not a possibility, however, our increasingly technologically savvy world continues to adapt, and you are now able to do so! Enter in RadPad and Plastiq.
RadPad gives you the ability to make your rent payment (rent payments only) using a debit or credit card. If you're paying rent via a debit card, it is fee-free for any rent payment up to $5,000 (Dang! You must live in California/NYC to be paying this much for rent! Yikes!), and a flat $9.95 for any amount above that. If you're paying rent with a credit card, they will charge you a flat 3.49% fee for doing so. They mail your rent payment 3 days before the due date, and have a tracking system similar to Amazon or any other giant retailer out there.
Plastiq, on the other hand, gives you the ability to pay any bill with either a debit or credit card. This means you can pay your rent or mortgage through their service, but also, if your plumber, water company, caterer, etc. doesn't take credit, you are able to pay them with your credit card through this service as well -- Plastiq simply cuts them a paper check and delivers it within 5-7 business days to your payee. If you're paying via a debit card, they charge 1%, whereas paying via credit card is a flat 2.5% fee.
RadPad vs. Plastiq
Knowing what we know from the summary of the two services above, let us do a simple breakdown of numbers for what service to use for what purpose.
Let's say your monthly rent/mortgage is $1,000:
- If paying using debit:
- RadPad = $1,000 rent + $0 fees = $1,000
- Plastiq = $1,000 rent + $10 fee = $1,010
- If paying using credit:
- RadPad = $1,000 rent + $34.90 fee = $1,034.90
- Plastiq = $1,000 rent + $25 fee = $1,025
What the numbers tell us is that if you're paying your rent/mortgage with a debit card, RadPad is the clear winner since there are no fees. If you're paying your rent/mortgage with a credit card, Plastiq is the clear winner. Again, keep in mind, if you're wanting to pay your mortgage, you can only use Plastiq, as RadPad is for rent payments only.
So you may be asking yourself, why go through all this trouble? Why would I use these services to pay my rent/mortgage with a debit/credit card, especially if I may incur a fee for doing so?
1. You're tired of writing your landlord a check every month.
This is pretty self explanatory. You no longer want to live in the dark ages of non-technology-check-writing-ledgering. I get it, RadPad is your friend.
2. You just applied for a credit card, or two, or three, or five.
This means that you have minimum spending requirements to make. Usually that amounts to $2-$3K of spend, per card, that you need to make in a short amount of time. If you applied for closer to the five cards end, then that means you have at least $10-15K of minimum spend to make. Yes, you may be assessed a 2.5% fee, but it could be peace of mind to finish your spend quickly to ensure that you get your reward bonuses.
3. You're trying to build your credit
As I've outlined before in my post, Addressing The Fear of Leveraging Credit Card Rewards: Part 1, your credit card payment history makes up a huge 35% of your credit score. If you're able to pay your rent/mortgage each month on a card, and fully pay off that credit card when the statement comes due, that could help build your credit score up in a hurry!
4. Credit card rewardssssss
Your rent/mortgage is definitely a larger amount of outflow per month, than many of your other expenses combined. If your rent is $1,000/month, that is at minimum 12,000 more miles/points in your account at the end of the year!
If you're looking for a way to maximize your miles/points earning potential, RadPad and Plastiq, are the means in which you can do so! Remember, RadPad can only be used to pay your rent, while Plastiq can be used to pay your mortgage, along with any other bill. Just yesterday, I paid our August mortgage payment using Plastiq, and I'm planning on using it to pay some of our student loans as well!
Be on the lookout for Part II, as I address how to further minimize your fees, maximize earning of even more miles/points, and even make a little profit from utilizing these 2 services!
*Please use any of the Plastiq links on this post, as they are referral links. If you sign up using my link, I get 400 FFD (fee free dollars) and you get 200 FFD with your first payment of $20 or more! Thanks!