How to Pay Your Rent/Mortgage Using RadPad/Plastiq to Earn Miles/Points/Cash Back: Part 3

Part IPart IIPart III

Recap

Let's go over again what we know! From Part I, we learned that the best and cheapest way to pay rent is using a debit card through RadPad. And as we learned from Part II, the best debit card to use is the PayPal Business Debit MasterCard (PPBDMC), because you actually earn 1% cash back for using it! 

The best and cheapest way to pay your mortgage using a credit card, is through Plastiq, since their 2.5% fee is about a percentage point cheaper than RadPad's 3.49% fee. However, unless you are trying to build your credit, quickly meet minimum spending amounts, or build up your miles/points stashes, this is not the most cost-efficient way to go about it.

Yes, we are correct in saying that we can earn at minimum 12,000 points on a $1,000 mortgage payment over a period of a year, but we would also be incurring fees to the tune of $300 yearly. For some, the value that can be had from the miles/points accrued may outweigh that cost, but for me, I'd still rather be able to cut down those costs or profit while accruing those miles/points!

 

PayPal My Cash

PayPal My Cash (PPMC) is a means for those who are "under credited", someone who only has cash on hand, but would say like to purchase something online at eBay. These are available at your local drugstores - i.e. Walgreen's, CVS, Rite Aid, etc. - where you're able to load up to $500 per card, for a $3.95 fee. Now, depending on your local drugstore, you may only be able to buy $500 at one time or up to $2000 at a time. It really is store dependent and something you may have to test out on your own. But, here is the game changer, most allow you to purchase these PPMC cards with a credit card! I know... the wheels are starting to churn, bear with me. Once purchased, you would simply follow the directions on the back of the card and load the funds into your PayPal account. 

Now this is where the PPBDMC comes back into play. Remember how if you're a renter, you're paying your rent with RadPad, using the PPBDMC, and getting 1% cash back? Well, you can now use whatever travel rewards earning credit card to pay for these PPMC cards, load them into your PayPal account, then use the PPBDMC via RadPad to pay your rent! If you're wanting to pay your mortgage, you can now save on the 2.5% Plastiq fee by purchasing PPMC cards, then paying through Plastiq with your PPBDMC! Here is how the math works out on a $1,000 monthly rent/mortgage payment:

  • Rent via RadPad, without purchasing PPMC cards, funds drawn from banking account:
    • Rent = $1,000
    • Profit of 1% cash back from using PPBDMC = $10
    • Net Rent Payment = $990
  • Rent via RadPad, with purchase of PPMC cards, using a travel rewards earning credit card:
    • Rent = $1,000
    • Profit of 1% cash back from using PPBDMC = $10
    • Fee of 2 x $3.95 PPMC cards = ($7.90)
    • Net Rent Payment = $997.90
    • Credit Card Miles/Points/Rewards = 1,008 or more
  • Mortgage via Plastiq, with purchase of PPMC cards, using travel rewards earning credit card:
    • Mortgage = $1,000
    • Profit of 1% cash back is negated by 1% Plastiq fee.
    • Fee of 2 x $3.95 PPMC cards = ($7.90)
    • Net Mortgage Payment = $1,07.90
    • Credit card miles/points/rewards = 1,008 or more
    • Savings from using PPMC/PPBDMC combo vs. paying with credit card directly via Plastiq (2.5%) = $25 - $7.90 = $17.10

 

Analysis

Let's break this down a little further by calculating how much in travel miles/points/credits you can earn per year, using the $1,008 amount, depending on the card you use. Here are some examples of a couple cards that I hold:

  • Chase Freedom Unlimited (1.5 points/$) = 18,144 Chase Ultimate Rewards Points
  • Barclay Arrival+ (2.1% cash back) = $254.02 in travel credits
  • Fidelity Investment Rewards Card (2% cash back) = $241.92
  • 5% Cash Back Card (there are several out there for grocery/drugstore/gas purchases) = $604.80

 

Warning

One word of caution is be careful with what you do with the PPMC money that is now loaded into your PayPal account. At the onset of PPMC card availability, people were loading it into their accounts, and then withdrawing it directly to their bank account. Those who did this, their PayPal accounts were eventually SHUT DOWN. The reason being PPMC was not made available for this purpose. They were, like I mentioned, targeted towards those who were "under-credited" with the purpose of actually using the funds to make purchases. Your rent, your mortgage, your student loans, or any other bills in which you are using your PPBDMC to pay all fall under "purchases". Do not, I repeat, DO NOT withdraw these funds to your bank account if you value your PayPal account in any way.

 

Conclusion

I have now not only shown you how to pay your rent/mortgage with RadPad and Plastiq, but I have also given you several ways to either make a profit or at least reduce your costs when utilizing your travel rewards earning credit cards! This is something that I will be doing moving forward to continue to give me and my family plenty of options when it comes to traveling when, where, and how we want to! Please let me know if you have any questions!

*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!