You get charged a 3% transaction fee for using a credit card, which more than wipes out the value of any points you might earn.
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(Excluding the Bilt card, which used to let you earn 1% on rent and they processed it like an ACH/bank debit, so no credit card fee. But they recently restructured their rewards and it’s not nearly as easy to profit now.)
Not every card gets charged a 3% mine for example doesn’t. I get 3% back on rent, housing and insurance on my card. There’s no fees involved. So it’s just a flat 3% discount.
Pay rent with card in the first, pay it off on the second when it posts.
X1 used to give 3 points and my buddy’s rental house charged a 2 and change percent fee. He could only get full point values certain places so he’d save up all the points and that was his Christmas fund. He’d bank $600/yr ( about $500 real dollars from paying the transaction fee plus the extra hundred-ish bucks in points he’d get for free). They recently went to a 1.5 point model but kept the restrictions on where you could spend to get the full point value. Guess what card of his never gets used now.
I think the intention was to get the points. But, I’m sure some are not as diligent as they should be.
You get charged a 3% transaction fee for using a credit card, which more than wipes out the value of any points you might earn.
Tap for spoiler
(Excluding the Bilt card, which used to let you earn 1% on rent and they processed it like an ACH/bank debit, so no credit card fee. But they recently restructured their rewards and it’s not nearly as easy to profit now.)
Not every card gets charged a 3% mine for example doesn’t. I get 3% back on rent, housing and insurance on my card. There’s no fees involved. So it’s just a flat 3% discount.
Pay rent with card in the first, pay it off on the second when it posts.
X1 used to give 3 points and my buddy’s rental house charged a 2 and change percent fee. He could only get full point values certain places so he’d save up all the points and that was his Christmas fund. He’d bank $600/yr ( about $500 real dollars from paying the transaction fee plus the extra hundred-ish bucks in points he’d get for free). They recently went to a 1.5 point model but kept the restrictions on where you could spend to get the full point value. Guess what card of his never gets used now.
I was thinking about that Bilt card.