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Can You Pay Mortgage With a Capital One Credit Card?

If you have a mortgage loan, you have probably at least once asked yourself whether you can make your monthly payment via credit card. If you use Capital One’s services, can you pay the mortgage with a Capital One credit card? Is it even a good idea to use credit cards for mortgage payments

It is not possible to pay your mortgage with a Capital One credit card. However, you may be able to use your credit card to pay other bills associated with owning a home, such as property taxes or insurance premiums. If you’re hoping to use your credit card for added flexibility in meeting your monthly financial obligations, consider transferring your balance to a low-interest personal loan instead.

Still, this isn’t the best way of making your monthly payments, and it should be used as a last resort.

Laptop on the desk with a Capital One logo on the screen

Using your Capital One credit card is great in many circumstances; however, paying a mortgage isn’t one of them.

Of course, there are some minor benefits to paying your monthly installment with a credit card.

Keep reading to find out how you can do this – and if it is a good idea.

Can You Pay Mortgage With Capital One Credit Card?

Mortgage payments can often be tricky, especially in this economy. Still, a mortgage deed is a crucial part of life for many, and we can’t sit around hoping that the mortgage will expire. So, let’s say that this month for some reason, you want to pay the installment with your Capital One credit card – can this be done?

The answer you’ll find in every mortgage book is both yes and no – you can’t directly pay the mortgage via any credit card, Capital One, or otherwise. This is because your mortgage lender doesn’t want to risk exposing themselves to various transaction fees from credit card companies. However, in some cases, you can pay the installment indirectly, thanks to third-party services.

How Can You Pay Your Mortgage Installment With a Credit Card?

Paying a mortgage with a credit card via third-party processors isn’t the most convenient way to handle these payments. No one would choose it as a go-to solution – it’s more of a thing you do when you have no other decent options, like when you’re even thinking about mortgaging a foreclosure due to late payments. You probably know that a mortgage is a lien, so being late with installments means you’re risking the loss of your house.

The most popular third-party processor out there is Plastiq – this is just about the only service of this kind that is recommended. Plastiq will allow you to use your Capital One credit card for almost any kind of payment, and it charges a transaction fee of 2.85% – it’s clear that this can’t be a payment you make every month because you would be losing money, but it’s quite helpful when you’re late with a payment and want to avoid late fees, or you simply have no other choice.

A person holding a credit card and typing on the laptop

Which Capital One Credit Cards Can You Use for Payments Via Third-Party Services?

There’s one catch when it comes to using Plastiq – they don’t accept all types of credit cards. MasterCard and Discover can be used, but Visa and American Express are not an option. It’s important to note that you never know when MasterCard and Discover can decide not to allow payments via Plastiq – it’s one of the reasons why you can’t rely on this on a monthly basis.

So, it’s simple – whether you can use your Capital One card depends on what type of credit card you have. Here are the most popular Capital One credit cards – I’ve noted which ones can and can’t be used for payments via Plastiq.

  • Venture X card is Visa, so you can’t use it to pay through Plastiq.
  • Quicksilver is usually a MasterCard, but there is a Visa version as well – be sure to check which one you have before you try to make a payment.
  • Savor and SavorOne are MasterCards, which means they are suitable for this kind of payment.

Why Is It Not a Good Idea to Pay Mortgage With a Credit Card?

I’ve mentioned Plastiq’s transaction fee – that alone should be enough to explain why using credit cards for mortgage payments should not be anyone’s go-to payment method. Still, it would be false to claim that there are absolutely no benefits to using credit cards in this situation – but they are usually not worth the trouble.

The table below lists the advantages and disadvantages you need to consider before you opt for paying a mortgage installment this way.

Late fees and late payments are avoidableIf you don’t pay off your credit card debt in full when due, you will have to pay interest
The grace period allows you to continue earning interest by keeping your money in savings for a few more weeksYou will lose money after paying Plastiq’s transaction charge of 2.85% and the interest earned
Rewards from credit cards are an optionThe use of a payment processor may prevent your credit card issuer from considering the transaction as a purchase
If you want to prevent foreclosure, you can make a payment with your credit cardAdding credit card debt is not the greatest course of action if you are in foreclosure due to payment defaults

If You Have to Resort to Paying Mortgage With Credit Card, It’s Wise to Get Familiar With Third-Party Processors Such as Plastiq

Knowledge is power, especially when it comes to something as tricky as mortgages. That’s why I often recommend doing as detailed research as possible, no matter the topic. When it comes to paying monthly installments with credit cards, it’s wise to get familiar with third-party processors, especially Plastiq. This way, you can avoid unpleasant surprises in the future.