Property tax, which you pay on top of your mortgage and interest, should always be factored into the cost of your home - and therefore into your budget.Įven though credit cards can offer convenience, there's really only one time you should use them for the purpose of charging your rent or mortgage, and that is if you want to meet a minimum spend on a new credit card in order to earn a welcome bonus. "This may signal that you've bought too much home and can't meet this obligation with the income you bring in," explains Kara Stevens, founder of The Frugal Feminista. Make sure to know beforehand all the additional costs associated with charging this type of purchase on a credit card.Įrin Lowry, founder of Broke Millennial®, tells Select, "That processing fee could chip away at any value you believe you're getting in rewards."Īnd if you're a homeowner, this also means you shouldn't charge your property taxes on a credit card. "While it may seem like a great deal and easy way to rack up extra rewards points, there's usually a 2% to 3% processing fee that negates all of the benefit, and then some," Malani says.