For some reason, certain people out there seem to think it’s okay to make their mortgage payments with a credit card.
While there are (possibly were) a few services out there that allow you to pay your mortgage with a credit card, it doesn’t make a lot of sense.
Credit cards tend to have variable interest rates, and if you miss a payment, the APR may skyrocket to the default rate, which is generally in the high 20%s.
There are also minimum payments to consider folks.
It’s not too smart to charge up a ton of money on your credit cards just because you think you can earn money elsewhere.
Besides, fixed mortgage rates are at record lows these days, so why jeopardize a good thing?
The banks aren’t stupid – they don’t lend money out at rates below typical savings rates, at least not for more than a promotional period.
So as a rule of thumb, reserve balance transfers only to pay off other high-APR debt, like other credit card balances.
Never use them to rack up more debt, as the future is always uncertain.