Personal Finance Buzz

A look at a new trend of using the credit card to pay the mortgage.

I recently wrote about My Journey to the Best Canadian Rewards Credit Card. This is the only credit card I carry. Having a single credit card meets my needs in that I feel the rewards on this card (The MBNA Platinum Smart Cash MasterCard® Credit Card) are some of the best available for people who like this credit card benefits paying them instead of paying interest.

If you have already paid of your credit card debt, and your other higher interest obligations, it might be worth it to consider paying off your mortgage with extra income.

Credit card transaction fees cost everyone. We know this. But credit card fees cost even more than you thought. On top of paying fees in their lives as consumers, Canadian taxpayers are paying more credit card fees through costs to the government.

Paul and Shirley have a 30 year fixed rate mortgage on a $200,000 loan. They are paying 5.5% APR and are motivated to pay that mortgage off early. I applaud their enthusiasm, but I also encourage them to examine their priorities before focusing on their mortgage debt . . .

There are always going to be warnings about spending on your credit card just to get the reward points, however, if you’re smart about collecting points and responsible in paying off your credit card balance within the interest free days, then there is no reason you can’t have the cake of a convenient and safe credit card, and eat it too by enjoying the rewards.