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TPG reader Carla tweeted this week:

@thepointsguy do you think it makes sense to pay my expensive NYC rent on a credit card to meet min CC spend if there’s a $50 fee to do so?”

In an ideal world we would be able to pay any bill with a credit card with no fee at all. When it comes to mortgages and paying rent, nowadays you can use a service to pay those bills with a credit card, but you’ll probably be hit with a fee of around 3%.

Since most credit card spend bonuses are all or nothing, if you won’t otherwise be able to hit the minimum spend to earn a substantial bonus, then paying that 2 or 3% is worthwhile. However, I wouldn’t recommend doing this normally, because the redemption value you get back in points and miles won’t match that extra cost. It’s only when you’re getting the big return of a signup bonus that this strategy makes sense.

WilliamPaid allows you to pay your rent by credit card for a small fee.
WilliamPaid allows you to pay your rent by credit card for a fee.

There are much cheaper ways to accrue miles and points. Even buying them from the airlines can cost below 2 cents per mile or point, like we’ve seen with the frequent US Airways 100% Buy Miles offer, which allows you to buy miles at about 1.8 cents apiece. With such good credit card offers these days, you might as well rack up huge credit card bonuses by hitting the minimum spend more quickly with larger purchases rather than just putting your day to day spend on those credit cards, which can take much longer to hit the spend requirement.

Another scenario where I would consider using a service like WilliamPaid to pay rent is if you’re close to getting a really lucrative (non sign-up) bonus from a credit card. Suppose you have the British Airways Visa Signature Card and are about to hit the $30,000 in annual spend to get the Travel Together Ticket, which gives you a free companion ticket (even on awards). With that companion ticket, you’ll still have to pay the fuel surcharges, which can be exorbitant, but if you really value business or first class, that benefit can save you thousands of dollars. If it takes $100 in fees from WilliamPaid to get a $2,000 companion ticket benefit, then you might as well do it.

Below I’ve listed some of the more lucrative credit card spend bonuses out there right now, but to reiterate, don’t feel bad paying a small fee if that’s the only way you can meet a minimum spend requirement. If you do have other options, then I’d avoid paying rent like this on a month to month basis.

If you have any additional questions, please message me on Facebook, tweet me @ThePointsGuy, or send me an email at info@thepointsguy.com.

Ink Plus: 60,000 points after $5,000 spent within the first 3 months.
Citi AAdvantage Executive World Elite Mastercard: 75,000 miles after $7,500 spent within the first 3 months.
Sapphire Preferred: 50,000 points after $4,000 spent within the first 3 months.
United Explorer Business: 50,000 miles after $3,000 spent within the first 3 months.
Club Carlson Premier Rewards Visa Signature Card: 85,000 points after $2,500 spent within the first 90 days.
Barclaycard Arrival Plus World Elite Mastercard: 60,000 miles after $5,000 spent within the first 90 days.
The Platinum Card® from American Express: 60,000 points after $5,000 spent within the first 3 months.
British Airways Visa Signature: 50,000 Avios after $3,000 spent within the first 3 months.

The Platinum Card® from American Express

The American Express Platinum card has some of the best perks out there: cardholders enjoy the best domestic lounge access (Delta SkyClubs, Centurion Lounges, and Priority Pass), a $200 annual airline fee credit as well as up to $200 in Uber credits, and mid-tier elite status at SPG, Marriott, and Hilton. Combined with the 60,000 point welcome offer -- worth $1,140 based on TPG's valuations -- this card is a no-brainer for frequent travelers. Here are 5 reasons you should consider this card, as well as how you can figure out if the $550 annual fee makes sense for you.

Apply Now
More Things to Know
  • Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
  • Enjoy Uber VIP status and free rides in the U.S. up to $15 each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings.
  • 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
  • 5X Membership Rewards points on prepaid hotels booked on amextravel.com.
  • Enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
  • Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
  • $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
  • Get up to $100 in statement credits annually for purchases at Saks Fifth Avenue on your Platinum Card®. Enrollment required.
  • $550 annual fee.
  • Terms Apply.
  • See Rates & Fees
Intro APR on Purchases
N/A
Regular APR
N/A
Annual Fee
$550
Balance Transfer Fee
See Terms
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.