Credit cards are essential payment cards that allow you to borrow finances when you have no money. The cards resemble debit and prepaid cards, although they differ in how they operate. Debit cards allow you to spend your checking account balance, while credit cards allow you to borrow money from your issuer. There are various ways you can use your credit card. You will learn how to pay rent with credit card without fees shortly.
Rent is the amount of money you pay to the landlord for residing in their houses. Usually, the amounts are payable monthly and differ from one landlord to the other. Again, the more a house is expensively furnished, the more rent you pay. We are used to making our rent payments using checks, bank accounts, or cash. However, you can pay with a credit card and continue residing peacefully.
Usually, landlords who accept card payments have online platforms where you can submit your payments. Others have offices where you can walk in and make payments by tapping or swiping your card at the register. Whichever way, you will have made your payments and gotten your receipt. After all, paying with your card saves you from the dangers of carrying cash around that can easily get lost.
How does a credit card work
A credit card allows one to borrow money to use for their transactions. Usually, you get a credit limit depending on your credit scores for the unsecured cards and your deposit amount for the secured credit cards. Once you get your limit, you can use the card to shop from various outlets. Every time you pay with your card, the limit reduces. You cannot borrow anymore if your limit becomes zero until you clear your debt.
Every time you make payments, your card issuer keeps data about your card usage and presents them every month to the credit bureaus, who then keep the details to calculate your scores and come up with your credit report.
You must repay your debt at the end of the billing period to continue enjoying the card’s services. Once you pay, you get another limit that keeps increasing depending on your card usage.
How do you get a credit card
You can get a credit card when you apply from your bank or credit union. You might undergo a credit check if you apply for an unsecured card. Once your application goes through, you can get a credit card with a limit that goes with your scores.
For secured cards, you only need to deposit some security deposit, then get the card you want. Your limit depends on the deposit amount. The more you deposit, the more your borrowing limit and vice versa.
You can apply for a credit card online or at a branch. When you apply online, you receive your card at your address and activate it for use. If you apply at a branch, you may go with your card the same day or wait for a few days.
How to use a credit card
You can use a credit card in various ways, including the following.
i) Pay for goods and services
You can swipe or tap at the register to pay for your goods and services using your credit card. You can also pay online at various online stores such as Amazon, eBay, Best Buy, and Walmart. Once you add your goods to the cart, you can then proceed to pay by providing your card number, expiry date, and the CVV. After approval, the systems deduct the spend amount and deposit it into the merchant’s account.
ii) Withdraw at an ATM
You can use your card to withdraw funds at an ATM using your PIN. You only need to insert your card into the machine, enter your PIN and the amount to withdraw, and press okay to get your cash. You just use it as you can use other cards such as debit and prepaid cards.
iii) Get a convenience check
You can obtain a convenience check from your card issuer to make a payment or deposit in your account to sort out your needs. The check operates like any other; you can deposit or cash it out at your bank or credit union.
iv) Fund mobile wallets
Various mobile wallets allow you to use credit cards to fund your transactions. They include PayPal, Venmo, and Cash App, among others. However, there are fees for using your credit card to fund your transaction activities.
How to pay rent with credit card without fee
Most credit card transactions incur transaction fees. However, you can make your payment without paying any fees whatsoever. If you want to pay your rent using a credit card with no fees, you can use the Bilt Mastercard. This card allows you to pay rent without any transaction fee and earn reward points. You can earn one point per dollar on the transactions.
Also, the card offers two points for travel spending, three points for dining, and one point for all other transactions. You can redeem Bilt Points toward rent payments. Interestingly, the card charges no annual fees.
Can you send funds with a credit card?
You may not be able to send money directly with your credit card. However, you can use your card with other platforms such as PayPal, Venmo, and Cash App to send money. Also, you may decide to get a convenience check and send it to someone as a payment.
Can someone else use my credit card?
You must keep your credit card in a safe place. Another person can use the card for payments since they do not need your PIN. They can get your card number, expiry dates, and the CVV and then use them to purchase online. If you lose your card, you should disable it immediately.
Bottom line
A credit card allows you to borrow money from your card issuer. You can get a credit card from your bank or credit union. We have secured cards that require you to pay security deposits to get them and the unsecured ones that require credit scores. As you use your credit card, your limit increases. You can use a credit card to buy goods and services or withdraw money at an ATM.
