Recently, I got my first credit card, and now I’m trying to use it as much as possible. My biggest expense is apartment rent, which is $2,143. I had my credit card limit increased to $5,000 to accommodate for my rent. In hindsight, I found out that there is a $27.95 service fee if I choose to pay my rent with a credit card. Now I wonder if I actually come out on top if I choose to pay my rent with my credit card.
I have a travel rewards card which gives 1.5 points for every $1 I spend. I have 11 months left in my lease.
$2143 * 11 = $23,573
$27.95 * 11 = $307.45 is the cost I pay for convenience fee
$23,573 + $307.45 = $2,170.95
$2,170.95 * 11 = $23,880.45
$23,880.45 * 1.5 = 35,820.675 points
I believe I can redeem $358.20 for those points. Subtracting that with the convenience fee $358.20 – $307.45 = $50.75, is what I get for 11 months paying rent with my credit card.
Looking at it this way, it seems like I come up on top. I know some of you redditors have tried making the most of your credit card, I was wondering if you think doing this is worth it? The main advantage I can see is that it builds my credit, which I haven’t really been doing.
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