A new service offered by CardIt, LLC., allows homeowners to make their mortgage payments via a credit card, using Visa, Mastercard, or Discover.
The payment service from CardIt gives customers the option of scheduling automatic mortgage payments, or making one-time payments using a simple online form.
CardIt co-Founder Alexander Zada said, “We are the only service that offers online mortgage payments to consumers with Visa, MasterCard and Discover credit cards. Mortgage payments are about necessity, not novelty.”
The question remains whether this is a solution, or more of a band-aid for consumers who fail to make timely mortgage payments.
While it may give some homeowners breathing room, others may simply rely on the service to postpone the inevitable, foreclosure.
Eligible mortgage providers include Countywide, Washington Mutual, ABN Amro, Chase Manhattan, Citi, and dozens more, though Wells Fargo and Bank of America were notably absent from the list.
The service charges a convenience fee of 2.49% of the amount of the mortgage payment plus a charge of $19.99 per transaction, which can clearly be quite lofty.
According to the company website, most lenders will receive payment within 48-72 hours of a completed transaction.
CardIt says benefits of using the service include avoiding mortgage late fees and earning credit card rewards.
While these statements may be true, consumers need to do the math before assuming this service will actually save them any money, or subsequent heartache.
It sounds like perfect timing doesn’t it, allowing at-risk homeowners to pay their monthly mortgage payment despite not having the necessary funds in their checking or savings accounts.
Earlier this year, American Express announced that it would allow homeowners to make mortgage payments using their American Express credit cards, though it said the service would only be available to “highly responsible, highly creditworthy consumers.”