To achieve financial independence, you need to be unconventional. We did public transportation when others owned cars. When everyone else eats it, we packed our lunch. When others bought a house, we rented it. We quit and retired at 31 when everyone else climbed the company ladder.
Now we are parents but still choose to rent, we are more unconventional. If we were rare before, we are now a family of unicorns dancing with goblins on their backs and swimming in the ocean of four-leaf clovers. On the one hand, I can calculate the number of families I know.
We firmly rent team rents and do not intend to switch as soon as possible.
The cool thing about rental is that I can even take advantage of this state and put my monthly rent on a travel hacker!
Yes. that’s right. Do you think all this rent is going to be wasted because you can’t pay rent with a credit card? OK, now you can! This means, you can earn points for free flights! Even if you don’t want to travel, you can get free money with the right cash back credit card (I will explain how in a minute).
If you have a team, rest assured that you can also participate in some of it!
Because now, you can even pay property taxes with your credit card! No need to bite and complain about property tax increases, because now you can put it on free money or flights!
How it works
You can do this using a service called Chexy. This is a Toronto-based startup that allows you to pay rent with a credit card. It’s very easy to use and I was able to get on the car in 5 minutes. I’ve sent several rents to the landlord without any problems. You just need to make sure your landlord accepts e-transfers, pre-authorized debit or bill payment. They do not need to accept or participate.
Chexy will charge your credit card 3 days before your rental due date. Then, use the payment method of your choice to add the funds to your Chexy wallet until it is issued to your landlord.
But wait, there are more! Chexy has been approved by the CRA and now you can even pay taxes with a credit card! (Note: This feature is currently only available to Canadians, but Americans can still use the Chexy equivalent of the United States to earn points for rent – more important in a minute
Now, like everything, there is a capture. The service is not free and Chexy charges a 1.75% fee for Canadian credit cards. However, if you play the card correctly (pun intended), the benefits are easily offset by consumption. The following are:
math
Want free money? Get a credit card with 4% cash and you get a 2.25% spread right away.
This means if your rent is $2000 per month, you get $45 per month for free, giving you $540 per year for free. The higher the rent, the more money you make. Anyway, this is the money you are going to spend, so there is no brainer to restore cash to it.
Just count your annual rent and 0.0225 rents to calculate your free money. Chexy has a cool calculator that you can use with a list of high cashback credit cards (you need to sign up for an account to access the calculator):
Since I love traveling, I would rather put my credit card spending on common flyer points like Aeroplan. And, since my rent is $1615 per month or $19,380 per year, the Chexy fee is $339.15 per year, but I’ll get 19,380 Aeroplan points. Obviously, you can get these points for free with the welcome bonus on your credit card, but once you run out of these options, that’s the next level of income, as you can do this continuously.
This was enough to get me flying in economy class, but since I was more important to value than the least spending, I would rather take my points towards the longer towed flight aspect of business class. With the new add-on feature, the ability to pay taxes with Chexy, if I pay $30,000 from my passionate income, I will earn 30,000 Aeroplan points for $525. As of now, search for seats.
This means that, given that business class fare is $8600, I can take $525 + $339.15 = $864.15 = $864.15 = $864.15 = $864.15 = $864.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.15 = $339.1 339.15, which means, this means, this means, this means, this means, this means that I can get a 90% discount, which means, this means that I can get an 8-hour discount, which means, this means, this means, this means, I can get an 8-hour discount in a 90% discount!
Now, it all assumes I only spend $1 and my credit card has no annual fee. If your credit card has fees or better income rates, you can use this formula to decide if Chexy is worth it:
Chexy’s cost per point formula
This gives you a per-point fee for Chexy. Then you compare it with how much it costs to buy points.
Here is an example:
The Amex Aeroplan reserve card costs $599 per year, giving you every 1.25 Aeroplan points spent.
The cost of each Aeroplan point I use Chexy is:
C = $599/(1615*12)*1.25+0.0175/1.25 = $0.0387. Since the Aeroplan points are priced at $0.035, this makes no sense.
The TD Aeroplan card I now own is exempt from the annual fee for the first year and offers me 1 Aeroplan point per dollar. This changes the equation to:
C = 0+0.0175/1 = $0.0175, the purchase point is less than $0.035, which makes sense.
Later, when I had to pay the annual fee of $139, I got:
C = $139/($1615*12*1) + $0.0175/1 = $0.0245, still below $0.035, so it still makes sense.
You can do the same with taxes. Just replace the annual rental number with your annual tax bill. Alternatively, you can use the Chexy calculator by changing the filter from “Cash Back” to “Points”, but remember that they don’t take annual fees into account and using Aeroplan points costs $0.021 instead of buying $0.035 from Air Canada.
The key points are: Reduce annual credit card fees and higher Your year rent or TaxBy earning points with Chexy, you will get better deals.
Chexy also offers opportunities to obtain premium cards such as Amex Express Platinum or TD Visa Infinite privileges. You know, with a large number of welcome bonuses for 100K points, but you never considered it because their minimum spending in the first 3 months was $10,000. Now, with the ability to include taxes and rents into this expense, you might divide points! These cards also come with privileges such as free lounge access, check-in bags, priority check-in, travel insurance and more, so you can make your trip more comfortable. Just beware of their youthful expenses, which may or may not be worth it depending on your priorities.
Suitable for Americans
American, your equivalent education will be bilt Rewards,,,,, No fees, but more restrictive than Chexy.
If you have a BILT credit card, you can use their landlord payment platform, if your landlord accepts ACH payment or rent BILT check mail service. Also, you must make at least 5 transactions per month.
If you don’t have a BILT credit card and want to use another credit card, the landlord needs to be in the Bilt Alliance Network.
As far as I know, there is no support for credit cards to pay taxes.
Other options with less restrictive limitations are Plastiq and Platpay, but at 2.9% and 2.99% fees, respectively, which I think is so high that the math is worth it.
If you know of other US options, let me know in the comments below.
recommend
Remember when I said above, can you reduce Chexy fees by 1.75% by recommendation? Well, just referring to 3 people reducing the fee to 1.5%. Reference 5 people reduced it to 1%. Once you reach 10 recommendations, only 0.5%!
So if you can only refer to 5 new friends a year, the 8-hour business class flight I mentioned above dropped to just $560. What if you could recommend 10 people? Only $280!
Speaking of which one. This is my recommended link (haha, didn’t you see that it was you?). If you use it, each of us gets $15.
You can then get your own referral link and use it to trick your family and friends.
warn
If you have difficulty paying off your credit card in time, please do not. Credit cards have crazy interest rates, so any balance you achieve on the card negates the interest.
For everyone else, this might make sense Increase credit limit On your credit card, avoid issues with paying rent or taxes when using this method to earn points.
What do you think? Have you ever tried Chexy or other payment systems like this before?
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