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Can You Pay a HELOC With a Credit Card?
July 1, 2025
The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired.
Can You Pay a HELOC With a Credit Card?
Usually not directly. Home equity line of credit (HELOC) payments are typically made from a bank account, by check, or by automatic transfer, and lenders rarely list credit cards as a payment option.
Workarounds exist, such as a cash advance, a balance transfer check, or a third-party payment service, but each one adds fees or interest that usually outweigh any rewards.
How Do HELOC Payments Work?
A HELOC is a revolving line of credit secured by your home. You draw against it and make monthly payments, which often start as interest-only during the draw period and later include principal.
Lenders set up payments through online banking, mobile apps, automatic transfers, or mail. Bank of America, for example, lets HELOC customers make payments in Online Banking and the Mobile Banking app, and offers a 0.125% interest rate discount for automatic monthly payments from a Bank of America checking or savings account set up at or before account opening. Check your own lender's payment page for its accepted methods.
What Are the Workarounds, and What Do They Cost?
Cash Advance
You can take a cash advance from your card and use the money to pay the HELOC. The CFPB says cash advances commonly carry a higher interest rate than purchases, and interest begins on the withdrawal date instead of after a grace period. Most cards also charge a cash advance fee.
Balance Transfer Checks
Some issuers send convenience or balance transfer checks that you can write to your lender. These usually carry a balance transfer fee, and the promotional rate, if any, ends after a set period. Read the offer terms before you use one.
Third-Party Payment Services
Payment services charge your card and send the lender a check or electronic payment. Their fees can wipe out your rewards. Plastiq, for example, lists a 2.99% fee for each payment charged to a card and is built mainly for businesses.
On a $1,000 payment, a 2.99% fee costs $29.90, while a card earning 2% back would return $20, so you would lose about $9.90 before any interest.
Calculation formulated by Kudos, based on a hypothetical $1,000 payment, a 2.99% payment service fee, and a card earning 2% back on purchases.
Should You Pay a HELOC With a Credit Card?
Possible Benefits
- Short-term breathing room. A card with an intro APR on balance transfers can delay interest if you use a balance transfer check and repay before the promo ends.
- Welcome offer spending. A large charge could help you reach a new card's spending requirement, but only if the fees are lower than the bonus value.
Costs and Risks
- Fees on every route. Cash advance fees, balance transfer fees, and service fees all add cost.
- Higher interest. If your card's variable APR is higher than your HELOC rate, carrying the balance on the card costs more than leaving it on the HELOC.
- Fewer or no rewards. Cash advances and balance transfers usually don't earn rewards at all.
How Could It Affect Your Credit Score?
- Credit utilization: Moving a large payment onto a card raises your card balance, which can lower your score until you pay it down. Amounts owed are 30% of a FICO® Score, according to myFICO.
- Payment history: A bigger card bill is harder to pay on time, and payment history is 35% of a FICO® Score.
- New credit: Opening a new card for a promo rate adds a hard inquiry and a new account.
Better Ways to Manage a HELOC Payment
Automatic Payments From Your Bank
Automatic payments from checking or savings help you avoid late fees, and some lenders offer a rate discount for setting them up. They also cost nothing to use.
Talk to Your Lender
If the payment is straining your budget, ask your lender about options before you miss a payment. Because a HELOC is secured by your home, falling behind is more serious than missing a card payment.
Refinance or Restructure
Some homeowners convert a variable-rate HELOC balance into a fixed-rate home equity loan or roll it into a refinance. Compare closing costs and rates before you decide.
Choosing a Card for Large Payments
If you still plan to use a card, pick one whose terms fit the plan, such as a long intro APR on balance transfers, and confirm the fees first. The Kudos Card Explorer lets you filter thousands of cards by annual fee, welcome offer, and other features, and Kudos shows your approval odds before you apply.
For related guides, see how to make an ACH payment with a credit card, pay a Pennymac mortgage with a credit card, and get a cashier's check with a credit card.
Frequently Asked Questions
Do HELOC Lenders Accept Credit Cards?
Rarely. Most lenders expect payments from a bank account, by check, or by automatic transfer. Check your lender's payment options to be sure.
Is Using a Cash Advance to Pay a HELOC a Good Idea?
Usually not. Cash advances often carry a fee, a higher APR, and interest that starts right away, according to the CFPB.
Does Paying a HELOC With a Credit Card Hurt My Credit?
It can raise your credit utilization, and opening a new card adds a hard inquiry. Paying the card balance down quickly limits the impact.
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