How to Use Credit Cards for Security Deposits

Some landlords have the ability to accept credit cards.

Security deposits are used to provide a landlord some financial protection and security in case you terminate the lease early, fail to pay your rent, or cause damage to the property. A security deposit is usually equal to one month's rent but can be more or less in certain cases. A landlord establishes the required deposit and decides on other factors, such as when the deposit is due and how he will accept the payment.

Instructions

1. Ask the landlord if he is capable of accepting credit cards. Many property management firms offer multiple ways of accepting a security deposit, while private homeowners may not have the capability. If your landlord can accept a credit card, provide him with the credit card or credit card information to process the deposit.

2. Call your credit card company and ask the agent to send you a check to use for withdrawing the funds from your available credit. Ask how long it will take to process your request. If you have time to wait for the check to arrive, complete the request and then use the check to pay for your security deposit.

3. Take your credit card to your local bank and request a cash advance. The bank teller will process your request in only minutes and will provide you with cash. If you prefer a check, ask for a certified check made out to the landlord.

Tips & Warnings

• Using the cash advance option on your credit card will result in cash advance fees and possibly a higher interest rate. Contact the credit card company to learn about the fees that will be charged.

• Using a check from a credit card account is considered a cash advance.

References

• Nolo: Get Your Security Deposit Back
• Neighborhood Legal Services: What is a Security Deposit
• Bankrate: Cost of Cash Advances