Should You Use Plastiq to Pay Your Mortgage and Other Bills With a Credit Card?

If you love credit card rewards and spend your free time pursuing points and miles, you already know the secret to outsized rewards: The more bills you can charge to your rewards credit card (and pay off right away), the more points and miles you’ll earn over time.

Personally, I pay every possible bill I can with credit – expenses like car insurance, health insurance premiums, groceries, gas, and internet service. Over time, even small purchases can add up to huge rewards that cover some pretty cool travel experiences around the globe.

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But, there are certain bills that are tough to pay with a credit card. Your mortgage and rent can be downright impossible, for example. Some companies, like utilities, even charge fees of 3% or more when you swipe – fees that usually cost more than any rewards you’d earn.

So, what do you do when you want to pay with credit and can’t? A fairly new service called has the answer.

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    What Is Plastiq? is a service that makes it possible to pay bills like rent, tuition, or mortgage payments — and even invoices — by credit card when you ordinarily couldn’t.

    Once you open a free account, just add a credit card, enter your mortgage or bill details, schedule a payment, and you’re done. Plastiq will send a check to your mortgage company or bill servicer, and charge the expense to your credit card. And voila, your rewards are on their way. You can set up automatic payments that take place on a certain date every month for a specific amount, or you can make every credit payment manually through the service.

    Alas, Plastiq doesn’t offer this service out of the kindness of their hearts. They also charge a fee, typically equal to 2.5% of each bill you pay. So, your $1,000 mortgage payment? You can pay it through Plastiq, and earn credit card rewards for it — but it will set you back $25.

    Is that worth it? Not usually- but in some cases, you might decide it is.

    When Does It Make Sense to Pay Bills With Plastiq?

    Paying a 2.5% surcharge for the privilege of paying certain bills with a credit card is rarely a stellar deal. Yet, there are notable exceptions and times when this strategy can make sense.

    In my humble opinion, there are three instances where using Plastiq to pay bills with your credit card can be a boon to any rewards strategy. Those instances are:

    #1: When the rewards you earn are more valuable than the fee.

    If you’re paying a 2.5% fee to use credit, but earning more than that amount in rewards, then using Plastiq can make sense.

    If you paid a 2.5% fee to pay a hefty mortgage or other bill, but managed to net 3%, you’d end up ahead — provided you had a good use for those rewards.

    #2: When you need to hit a minimum spending requirement to earn a huge signup bonus.

    Many of the top travel and rewards credit cards offer huge signup bonuses to those who can meet minimum spending requirements. Take the Chase Sapphire Preferred® Card, for example. This card doles out 60,000 points worth $750 in travel after you use your card for $4,000 in purchases within the first three months.

    While some people can easily spend $4,000 in three months paying regular bills, others with low expenses might struggle to reach that threshold without putting a big expense like rent or mortgage payments on the card. In those cases, it can “pay” to cough up a 2.5% fee if it helps you earn a huge signup bonus.

    The Capital One Venture Rewards Credit Card is another great option that comes with a one-time bonus of 60,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $600 in travel.

    Even if you paid all $4,000 in bills through Plastiq to earn the signup bonus, you’d fork over $100 in fees to earn $625 in travel. Not bad at all.

    #3: When you’re trying to reach a spending limit to earn status (maybe).

    Many hotel loyalty programs offer status perks for customers who carry their co-branded hotel cards and meet certain spending requirements. With the Starwood Preferred Guest® Credit Card from American Express (currently unavailable), for example, you can earn Gold status if you use your card for $30,000 in qualified purchases within a calendar year. You can also status match to Marriott and Ritz Carlton to score Gold status with all three chains.

    I’m not saying you should pay $30,000 in bills through to earn Gold status with a hotel chain; that would cost $750 in fees! But it could make sense if you’re getting close to the threshold but need some additional spending to put you over the limit.

    The Ritz Carlton card also offers Gold status for free the first year, then each thereafter when you spend $10,000 on the card. If you stay at Marriott or Ritz properties often enough, paying $250 in fees (2.5% of $10,000) to earn Gold status could be worth it. Why? Because Gold status can lead to pricey room upgrades and free breakfast that can be worth significantly more than $250 if you travel often.

    Editorial Note: Compensation does not influence our recommendations. However, we may earn a commission on sales from the companies featured in this post. To view our disclosures, click here. Opinions expressed here are the author’s alone, and have not been reviewed, approved or otherwise endorsed by our advertisers. Reasonable efforts are made to present accurate info, however all information is presented without warranty. Consult our advertiser’s page for terms & conditions.

    Holly Johnson

    Contributing Writer

    Holly Johnson is a frugality expert and award-winning writer who is obsessed with personal finance and getting the most out of life. A lifelong resident of Indiana, she enjoys gardening, reading, and traveling the world with her husband and two children. In addition to The Simple Dollar, Holly writes for well-known publications such as U.S. News & World Report Travel, PolicyGenius, Travel Pulse, and Frugal Travel Guy. Holly also owns Club Thrifty.