304 North Cardinal St.
Dorchester Center, MA 02124
304 North Cardinal St.
Dorchester Center, MA 02124
Many homeowners with a Wells Fargo mortgage wonder if they can pay their mortgage using a credit card.
So can you pay your Wells Fargo mortgage with a credit card? Wells Fargo does not allow direct mortgage payments with a credit card. However, indirect methods like transferring money from a credit card to a checking or savings account, using prepaid cards, or utilizing services like PayPal or Cash App can be used. These methods may incur high fees and potentially impact your credit score negatively.
While you cannot directly charge your mortgage payment to a credit card, there are some workarounds that allow you to pay your Wells Fargo mortgage with funds accessed through a credit card.
The real question is whether this kind of transaction is good for you in terms of fees. To learn more about how to make payments on a mortgage using your credit card, keep reading.
Unfortunately, you cannot directly pay your Wells Fargo mortgage with a credit card. Wells Fargo does not accept credit card payments for mortgage accounts.
However, there are some indirect workarounds where you can use funds from a credit card to pay your Wells Fargo mortgage:
The best option is to set up automatic mortgage payments directly from your bank account to Wells Fargo. Only use a credit card as a last resort if you cannot pay on time, but expect to pay high fees and interest. I would not recommend paying a Wells Fargo mortgage with a credit card on an ongoing basis due to the costs involved.
If you want to pay your mortgage with a credit card, you’ll have to go through a third-party service like Plastiq. This service allows you to use your credit card to make payments to companies or individuals that don’t normally accept credit cards. However, Plastiq charges a 2.5% fee for this service.
You can also take out a cash advance from your credit card and use that to pay your mortgage. However, cash advances typically have much higher interest rates and fees compared to normal credit card transactions. The cash advance fee is usually around 5% of the amount advanced, with an interest rate over 25%.
Another option is to do a balance transfer to another card that offers a 0% introductory period. However, balance transfers usually incur a balance transfer fee around 3-5% of the amount transferred.
So while it’s possible to use a credit card to pay your Wells Fargo mortgage, you’ll have to pay convenience fees ranging from 2.5% to 5% on the mortgage payment amount. The exact fee depends on the specific payment method you use.
The main potential benefits of paying your mortgage with a credit card include:
However, the benefits really depend on your specific financial situation and credit profile. For some, the fees and risks may outweigh the potential rewards.
There are also some significant drawbacks to making mortgage payments with a credit card:
So carefully weigh the pros and cons for your situation before using a credit card for the mortgage. Also evaluate other payment methods that may work better.
If you decide to pay your Wells Fargo mortgage with a credit card, here are some key things to consider beforehand:
Evaluating these factors will help you make an informed decision before using your credit card to pay the mortgage. Proceed with caution and understand all the risks involved.
You’ll have the most success using a major credit card network brand like Visa, Mastercard, American Express, or Discover to pay your Wells Fargo mortgage. Visa and Mastercard are accepted nearly universally.
Cards that offer robust rewards on all spending are ideal, such as:
Avoid prepaid debit cards or secured credit cards, as these often can’t be used for large or recurring payments. Check your card’s terms or call the issuer to confirm.
As you already know, a mortgage is a lien, and a credit card is also a loan. This means that if you pay your mortgage with a credit card, you will pay a debt by creating more debt. Most lenders will not allow this transaction for this reason.
Another reason why lenders don’t accept this kind of transaction is the high fees they will have to pay to the card issuer.
However, if you have a HELOC, in essence, you will be able to use this money to pay your mortgage rate.
Here are the pros and cons of paying a mortgage with a credit card.
|You can earn rewards
|It can affect your credit score
|You can get sign-up bonuses on a new card
|You can end up in more debt than before
|You can avoid late fees
|You will pay high fees
|You can avoid foreclosure
Some other options to consider rather than using a credit card for the mortgage include:
Wells Fargo allows you to make online payments from any checking or savings account. All you have to do is to sign up for Wells Fargo online and follow the steps. Make sure you transfer money from the credit card to another checking account, and you are good to go. Also, if you have automatic payments at Wells Fargo, make sure you cancel recurring mortgage payments on time.
Another option is to withdraw money from an ATM, go to the nearest Wells Fargo branch, and make payments in person with cash. Also, no matter if you have a reverse mortgage or a conventional one, you can make payments via phone. Just call 1-800-357-6675 and follow the instructions from the automated service. And just like with online payments, you will have to have close a routing number or the checking account where you transfer money
Using prepaid cards is another option you can turn to. These cards are usually connected to a checking or savings account, so if you transfer money on these cards, it will go to these accounts. You can then use these accounts when paying for a mortgage online. However, before you transfer money, make sure these cards can actually pay your mortgage rate because some of them have canceled that option.
Last but not least, you can transfer money from a credit card to a checking account using PayPal. But keep in mind that this will not lower your mortgage payments but increase them. As you know, you can link your PayPal account to your credit card directly, so all you have to do is to deposit money in your PayPal account and use that money to pay a mortgage. However, use this option only if it’s necessary because the fees will be pretty high.
You can also link your credit card to some cash app and send this money to a friend or family member and ask them to send you the money back to your checking account. Then you will be able to pay the mortgage. But you can imagine how many fees you will pay by making these transactions.
As I’ve stated before, it’s not possible to make a Wells Fargo mortgage payment with your card, but even if you find a way to do it, there are some things to consider. The whole ordeal might not be worth your credit score or your budget. The things you should take into account include the fees and rewards, the cost of interest, and the effect it might have on your credit score.
It is appealing to pay for your mortgage using a credit card if doing so will allow you to earn rewards on such a generally substantial expense. However, the expense of a third-party service fee may wipe out your profits. If your mortgage payment is $2,500 and the processing fee is 2.9%, keep in mind that you will pay $72.50 per payment.
It is uncommon for credit card issuers’ rewards to exceed the expense of such a fee. A notable exception is the credit card’s welcome bonus. If placing a one-time monthly mortgage on the credit card would assist you to fulfill a minimum purchase requirement for a generous bonus that significantly outweighs the cost, it might make sense.
If you do not settle your credit card bill in full each month, placing a mortgage payment on your credit card can result in expensive interest costs. Carrying huge continuous sums would easily cancel out any rewards you may get over the long term.
Placing a mortgage payment using a credit card will certainly consume a sizeable portion of the credit limit and raise your credit usage ratio. It will also affect the ratio of your entire debt to the available total credit limits. This number has a big impact on your overall credit ratings, and you should strive to maintain a ratio of 30% or below. So making a mortgage payment in the thousands of dollars is pretty much ineffective.
Paying your Wells Fargo mortgage with a credit card can affect your credit score in a few key ways:
Overall, the impact depends on your specific credit situation. Pay off balances quickly, maintain low utilization, and minimize hard credit inquiries to get the most score benefit. Check your credit report frequently to understand changes.
As you can see, it is not impossible to pay your mortgage with a credit card (though indirectly,) but there is a reason why most lenders don’t allow this transaction. You will create more debt that will affect your credit score. Also, you will pay high fees no matter which option you decide to do. For example, to make transactions using cash apps or PayPal, you will pay around 3% for the fee, and a similar fee or even higher will be with other options as well.
On the other hand, when you make a mortgage loan agreement with the lender, you have committed to making monthly payments, and the late fees can be higher than those you will pay when using a credit card. So when deciding whether to use credit cards to make these payments make sure you calculate all the fees and pros and cons of both options. In the end, if you have to avoid late fees and foreclosure for a couple of months until you get on your feet again, using this option is acceptable. Just make sure, before you get into more debt, to consult a financial advisor.