Debt: If you’re thinking about using your credit card to pay your mortgage, then there may be a more serious debt issue, such as not being able to keep up with your mortgage repayments.
If this is the case, you should notify your mortgage provider and consider getting free debt advice from a debt charity, such as National Debtline or Citizens Advice.
It’s better to be being open and honest with your provider about your situation, instead of falling into arrears before alerting them. They may be able to help you by giving you a repayment ‘holiday’, where you stop making payments for a period of time. This might give you the breathing space you need to get back on track.
Rewards: In exceptional circumstances, you may be trying to qualify for a sign-up bonus (some credit card providers offer a sign-up bonus if you spend a certain amount within the first six months) or trying to maximise points on your rewards card. It’s never a good idea to go into debt on a rewards card, as the interest rate will be so high. These cards work best if you clear the debt each month – any interest incurred quickly wipes out the value of the reward.
In most cases, it’s unlikely that the percentage of rewards, such as a bonus or cashback, would cover any fees that you’re likely to incur by using a credit card to pay your mortgage.