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Can You Pay A Heloc with A Credit Card?
July 1, 2025

Quick Answer
While lenders generally prohibit direct HELOC payments with a credit card, certain indirect methods may serve as costly workarounds.
Should You Pay A Heloc With A Credit Card?
Here are the potential upsides and downsides of this payment strategy.
Benefits
- Earn rewards. You could accumulate credit card points, miles, or cash back on your HELOC payment.
- Utilize introductory offers. A new card with a 0% introductory APR could provide a short-term, interest-free loan.
- Payment convenience. Using a credit card can be a fast and straightforward way to make a payment online.
Costs
- Processing fees. Lenders or third-party payment services often charge a convenience fee, typically 2-3% of the payment amount.
- High interest rates. If you carry a balance, your credit card's standard APR will likely be much higher than your HELOC's rate.
- Cash advance treatment. The transaction may be classified as a cash advance, incurring higher fees and immediate interest accrual.
How to Pay A Heloc With A Credit Card
Using a credit card to pay your Home Equity Line of Credit (HELOC) can be a strategic financial move. It offers a way to consolidate debt or earn rewards, but requires careful planning.
Confirm Acceptance: First, verify if your HELOC lender accepts credit card payments directly, as many do not. Also, check with your credit card issuer to understand how they will classify the transaction—it could be treated as a purchase, balance transfer, or a costly cash advance.
Choose a Suitable Card: The right card is crucial. Look for one with a 0% introductory APR on purchases or balance transfers to minimize interest. To find a card that fits your strategy, you can use a comparison resource like the Kudos explore cards tool.
Calculate the Fees: Be aware of all potential costs. Your credit card may charge a cash advance fee (typically 3-5%) or a balance transfer fee. If you must use a third-party service, they will also charge a processing fee, which can negate any rewards you earn.
Engage an Intermediary: If your lender doesn’t accept credit cards, a third-party payment service can help. These platforms charge your card and then send a check or ACH transfer to your HELOC lender on your behalf. Always factor their service fee into your total cost.
Make the Payment and Create a Plan: Once you’ve accounted for the logistics and costs, proceed with the payment. Most importantly, have a disciplined strategy to pay off the credit card balance before any promotional APR period ends to avoid accumulating high-interest debt.
Impact On Your Credit Score
Using a credit card to pay your HELOC can have several effects on your credit score. Here are a few key factors to keep in mind before you make this financial move.
- Credit Utilization Ratio: A large payment can significantly increase your credit card balance, raising your credit utilization. This higher ratio can negatively impact your credit score, as it suggests greater financial risk to lenders.
- Payment History: While you're paying your HELOC, you now have a larger credit card bill. Failing to pay this new, higher balance on time can result in late payments and damage your credit history.
Alternative Ways To Pay A Heloc
Direct Bank Transfers
The most common alternative is paying directly from a checking or savings account. Lenders typically facilitate one-time or recurring electronic fund transfers (EFT) through their online portals or mobile apps. Setting up automatic payments ensures you never miss a due date and helps you budget consistently. This method is straightforward, avoids potential credit card processing fees, and provides a clear record of your payments directly from your bank statement.
Refinancing or Consolidation
For a more structural change, consider refinancing the HELOC itself. You could convert the variable-rate line of credit into a fixed-rate home equity loan, which provides predictable monthly payments. Another strategy is a cash-out refinance of your primary mortgage, using the proceeds to pay off the HELOC entirely. This consolidates your debt into a single loan, which may offer a more favorable long-term interest rate and simplify your finances.
Choose the Right Card to Pay A Heloc
Navigating the world of credit cards to find the right one for a significant payment like a HELOC can be daunting. Whether you're looking for a low introductory APR, a balance transfer option, or robust rewards on a large transaction, the choices are overwhelming. Kudos’s AI-powered Explore Tool simplifies the process, allowing you to compare nearly 3,000 cards to find your perfect match. It personalizes recommendations based on your specific needs, ensuring you select a card that truly works for your financial strategy.
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Frequently Asked Questions
What are the risks of paying a HELOC with a credit card?
You risk high interest rates, potential cash advance fees, and negatively impacting your credit utilization ratio.
Are there fees for paying a HELOC with a credit card?
Yes, lenders often charge a convenience fee, and your credit card may treat the payment as a cash advance.
Does paying a HELOC with a credit card affect my credit score?
It can lower your score by increasing your credit utilization and adding a hard inquiry if using a new card.
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