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Can You Pay Wells Fargo Mortgage With Credit Card?

Wells Fargo is a world-renowned bank that offers fantastic deals and benefits when working with them. They’re a trusted financial institution, so if you consider going to them for a loan, you can. But can you pay Wells Fargo mortgage with credit card? We’ll learn that today.

Essentially, you can’t, but there are ways around it. Information on the Wells Fargo official website says that users can’t pay off a mortgage with a credit card but can set up automatic payments to be drawn from one’s checking account each month. It might be possible to settle an installment or two this way, but this method has many disadvantages.

 A glass building with a Wells Fargo sign

Can You Pay Wells Fargo Mortgage With Credit Card?

This bank doesn’t allow borrowers to pay their home mortgages directly with a credit card, but they can set up automatic loan payments with the card’s issuer. This can be a helpful way to ensure never to miss a payment and help rack up rewards points from the user’s credit card company.

So, it’s not impossible, but it’s not exactly entirely allowed. This bank can’t follow up with your issuer if your credit card’s balance expires, but you will pay interest on home loan payments if that happens.

Many people check alternatives for loans, like whether to go to Navy Federal or Wells Fargo. Navy Federal is good if you’re looking for a credit union with great rates and benefits, but it doesn’t have the same nationwide reach and low fees as the other financial services provider. Navy Federal may still allow flexible payment methods.

Wells Fargo Doesn’t Advise Mortgage Payments by Credit Cards

This nationwide bank avoids telling people to pay off loans with credit cards because they don’t want anyone to cancel recurring payments. Of course, this is possible and within a user’s right, but it could lead to long processes of backing out of the automatic payment service.

Generally, credit cards are, in some ways, credits, so paying off one with another can make it an endless cycle of paying. Additionally, every fee that piles on after each installment could lead you into more debt than previously thought.

While lending institutions mostly care about you paying on time each month, they have calculated which payment forms and borrowers are the most suitable for their business and give information that fits those sign-up criteria.

A small keychain in the shape of a house and mortgage papers

The Reasons Why Mortgages Might Be Paid With Credit Cards

Mortgage brokers might find you suitable home mortgage packagers that will allow paying like this, and the reasons why someone would ask for that could be:

  • To take advantage of a credit card’s rewards program, which can offer cash back or points that can be redeemed for merchandise or travel,
  • To get a lower interest rate on the home loan by transferring the balance to a credit card with a lower interest rate,
  • To pay off a home loan because they can’t afford the monthly payments,
  • To use credit cards as short-term loans.

Paying With Credit Cards Can Earn You Rewards

Card issuers offer many rewards and perks when paying your mortgages like this. Perhaps the biggest information is that you can earn rewards on every loan payment. Most provide bonuses for every dollar you spend, and many offer accelerated rewards for spending in specific categories, like groceries or gas.

Paying installments this way could earn you some perks you may not get with standard forms of payment. Those would be benefits like airline points, hotel stays, or complimentary tickets for a friend on an airline.

You Can Avoid a Late Payment That Way

Most banks take installments every first of the month, but some allow a time window of fifteen days to pass before taking funds off your account. Even then, each late fee is astronomical and could cost you more than you originally agreed to.

Of course, credit cards can come in handy in this particular situation. If you know you won’t be able to cover your financial dues for the month, you could pay this way. Avoiding late fees using credit cards is ultimately a good solution that will take you out of a particular bind later.

It Earns Good (If Not the Best) Interest

You are granted an interest-free grace period on your purchases if you don’t have credit card debt. There are around 25 days between your credit card statement and your payment’s due, but this could be different with every issuer (some ask for money after 21 days).

You can make the most of this grace period throughout the year by keeping cash due for a credit card payment in a savings account, which earns interest. This could net you additional dollars if you never pay late or carry a balance.

However, the top high-interest savings accounts in 2022 only offer a 0.7% yearly financial return. After a 2.85% payment processing fee, 25 extra days of interest on your mortgage payment won’t make you money.

A collage of a person signing credit and debt papers

The Downsides of Opting for Credit Cards When Paying off Mortgages

Credit cards aren’t always the best option if you have life insurance on a mortgage or anything that needs to be paid in monthly chunks. Here’s why this path of paying off your home loan may not be ideal:

  • Paying off mortgages this way can lead to increased interest. Credit cards typically have higher interest rates, so if you only make minimum monthly payments on here, you could pay a lot more in interest over the life of your home loan.
  • It can damage your credit score. A high credit utilization ratio can lower your score, and too much debt can hurt your rating.

It’s Not Advised to Pay Off Your Mortgage This Way, Even In Wells Fargo

Wells Fargo is a mortgage bank that doesn’t allow users to simply opt for a service, sign up, and pay their monthly financial dues via credit cards. However, users can set up automatic monthly payments that could sometimes go through other channels (credit cards).

Generally, it is not advised to try this method of paying your home loans or debts because these cards have enormous interest rates and accumulate more financial trouble over time if not handled properly.

It’d be best to try another bank if this is your ultimate goal or ensure you can work with this particular lender according to their terms.