Rent is one of the most expensive monthly costs you may have. You may find it challenging to pay your rent on time at times. In such cases, you can pay your rent using your credit card. However, there are both benefits and drawbacks to paying your rent using a credit card.
Paying your rent with a card may appear to be a handy alternative, but it has limitations. As a result, it’s critical to analyze the advantages and downsides to avoid losing money in the end.
Can I Use My Credit Card to Pay My Rent?
If your property management accepts credit card payments for rent, you’re in luck since you won’t be charged a fortune. you might incur a processing charge up to 3% which landlords frequently pass on to tenants.
If your landlord does not accept credit card payments, you can pay your rent through third-party online services. You will also be charged a processing fee, which will be decided by your service provider.
Benefits of paying the rent with a credit card
- You will get 45-50 days of interest-free credit.
- You earn full value back and reward points for card issuer transactions.
- In addition, the rent pay applications provide extra prizes and offers.
- By paying your credit card payments on time, you may enhance your credit history and credit score.
- Earned reward points can be exchanged for various discounts at a later date.
- You can use a credit card to pay your rent on time and then settle the bill when your income comes.
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How to Pay Rent on Paytm Using a Credit Card
It is incredibly simple to pay your rent on Paytm with a credit card. Simply take these few steps:
- Go to the ‘Recharge & Pay Bills’ area of the Paytm mobile app.
- Look for the ‘Rent Payment’ service and choose it.
- Choose to send the money to your recipient’s bank account or to their UPI ID.
- Enter your recipient’s bank account information or UPI ID.
- Click ‘Proceed’ and choose ‘Credit Card’ as your payment method.
- Complete the payment by entering your credit card information.
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How to Pay Rent through CRED
- Open the CRED app, then choose RentPay.
- Submit the rent payment amount.
- Then select “Proceed with a credit card.”
- Enter the name of the landlord.
- Put the landlord’s bank account information or UPI address in here.
- Put in your own address, then click “Pay Now.”
CRED will charge consumers a transaction fee ranging from 1% to 1.50%, depending on the user's card issuer.
Tips to Take Before Paying Rent with a Credit Card
When your credit limit is exceeded or your credit card expires, you could forget to make your rent payment if you have autopay set up.
You must submit the lease agreement to the site you are using to pay the rent if the rent is greater than Rs. 50,000.
If you’re using a credit card to pay your rent and make all of your other credit card payments on time, your credit usage score will ultimately rise. It would undoubtedly lower your credit history.
However, if you have used the credit card EMI option, the interest on the payments may be far too expensive.