If you are a tenant, you may very well understand the pressure of paying house rent on time, every month. This is one of the biggest payments that one incurs in a month and choosing to not pay or postponing the payment is not at all an option. Defaulting on paying of monthly house rent have serious implications including the owner sending an eviction notice to you. For people living from pay cheque to pay cheque, any urgent need of finances may lead to a big problem. Using a credit card for rent payment can be an easier option for you without getting stressed over savings, cash or liquidity.
A number of services have been launched recently that allow you to pay rent through credit card, at the expense of a small convenience fee. Users should weigh the pros and cons of using credit cards for rental services. We highlight those to you helping you make an informed decision.
How to pay home rent using credit card?
A tenant has to register for rent payment at the merchant website. Next, key details of yourself and the landlord. Once this is done, you can pay the monthly rent payments to the landlord using the credit card. Note that the merchant can charge a nominal fee for the transaction.
How to pay rent through credit card on Housing.com Pay Your Rent service?
Mentioned are steps to follow to pay rent through credit card.
- Download the app from Google Play Store
- Choose Pay Your Rent option
- Enter your full name, mobile number and your email Id.
- Mention the complete bank details of your landlord, along with the IFSC code for funds transfer.
- Choose the payment mode and make the transfer.
- Generate instant rent receipt for HRA and transaction history.
Why should you pay rent through credit card?
Transparent operations
This is a good option for all tenants who prefer online payment. Owing to online payment, the transaction is transparent and is recorded that can be accessed whenever one wants. Additionally, one can also enable alerts and reminders so that the tenant can pay the bill on time. By paying rent through credit card one can enjoy interest free credit for a period of 45 to 60 days.
On time rent payment
If your salary comes on the 10th of every month but according to your rental agreement you have agreed to pay the monthly rent by 31 of every month, you will have serious problem. Paying rent on credit card using Housing.com pay rent platform ensures you pay rent to your landlord on time.
Credit score will improve
Constant use of credit card for rent and repayment on time will have a positive impact on the credit score. But don’t spend more than 30% of your credit utilization. Constant usage of this will have a negative impact on the credit score.
Secure transaction
A credit card has strong security features that offer protection against theft etc. Thus, making a huge payment as housing rent every month will give you peace of mind if the transaction done is safe.
Cashback offers
Some banks offer cashback on the money spent on paying the monthly rent. This money is directly credited to your bank account.
Credit period of 45 days
While paying rent on credit card, a person gets a credit period of 45 days. This means if the rent amount is paid within the time frame, the person doesn’t have to pay any interest.
Annual spending on credit card met
Every credit card company has an annual spending attached. If you don’t spend this you will have to pay the rent for the credit card which runs into thousands. By paying rent on credit card, this is met easily.
Is paying rent through credit card good?
While paying rent using credit card is a good and convenient option, if your rent exceeds the monthly credit cap, then you may be in problem. Also, rent payment using credit card can result in debt accumulation if one isn’t prudent. As opposed to variable monthly expenses that, rents are fixed and one must pay for it every month.
Pros and cons of paying rent on credit card
| Pros | Cons |
| You can pay timely rent without impacting your cash reserves or bank balance. | Service providers charge additional convenience fee, for facilitating payments. |
| You can earn rewards points and additional cash-backs. | Your credit score can take a hit, if you do not pay your credit card bill on time. |
| It gives you the flexibility and room to defer payments till the bill’s due date (usually 45 days). | If you fail to repay the minimum amount due on your card, your bank may charge an additional late payment fee along with interest. |
| It can boost your credit score, if you make timely repayments. | |
| You can easily generate digital rent receipts and get it on your email ID. |
Pay rent on credit card: Benefits of Housing.com pay rent platform
- When you use Housing.com Pay Rent Platform, you may get rewards points from your credit card provider. This can be redeemed on the lender’s portal.
- If you use the Housing.com Pay Rent Platform, you can generate receipts instantly for submitting HRA and transaction proof to your employer. Also, there is no wallet system used and the platform offers direct bank transfer.
- Housing.com Pay Rent Platform provides 100% transparent and safe operation. In case the credit card doesn’t work, the platform also supports UPI and debit card.
Can I pay rent through credit card without charges?
Service providers usually charge a small amount for facilitating your rent payment through credit card. Since you are using your credit line and not cash, to transfer the amount to your landlord, there is a different banking process which has to be initiated. Moreover, these charges act as a revenue for the service providers, for the maintenance of their payment gateway, the security of your data and to ensure minimum transaction failure rate.
What are the credit card charges levied by banks?
| Merchant | Processing fee |
| Axis Bank | 1% + taxes |
| Bank of Baroda | 1% + taxes |
| HDFC Bank | 1% + taxes from second transaction. First transaction complementary. |
| HSBC Bank | 1% + taxes |
| ICICI Bank | 1% + taxes |
| IndusInd Bank | 1% + taxes |
| IDFC First Bank | 1% + taxes |
| Kotak Mahindra Bank | 1% + taxes ( except White and White Reserve cards) |
| RBL Bank | 1% + taxes |
| Yes Bank | 0.5% + taxes |
Is it worth paying a fee for using a credit card for rent payment?
While the advantages and disadvantages of paying rent through credit card has been listed above, one of the deciding factors to go ahead with this service is the amount you will be paying as convenience charges. Nevertheless, this fee could be offset by the reward points you will earn on your credit card along with the additional offers and discounts that you will get, if you use the Housing.com Pay Rent feature.
Is it safe to pay rent on credit card?
Paying on Housing.com rent platform is a safe option. But when you pay through credit card note the following points.
- Do not answer any calls that ask classified information such as account number, credit card number, expiry date, name, cvv number. Never share the OTP.
- Report to the bank immediately and file and FIR if your lose the credit card.
- Don’t pay rent on credit card on random sites that promise great benefits.
- Always opt for two-factor authentication while paying with credit card so that even in worst case scenario also fraudulent transaction can be averted.
Housing.com POV
Housing.com offers exclusive rewards and deals from leading brands, against your rent payment through credit card. This is over and above the credit card reward points that banks offer for credit limit utilisation. So, as compared to any other service provider, you get to earn additional discounts, offers and a lot more goodies, by using Housing.com’s Pay Rent feature. The rent transfer takes a maximum of 48 hours, with notification being sent to your landlord once the payment is confirmed. Users can also get digital rent receipts via email, for claiming HRA at the end of the year.
FAQs
Are there any charges for paying rent via the Housing.com Pay Rent feature?
Yes, a small convenience fee is charged but this can be offset by the rewards you earn on such payments.
How long does it take to transfer rent using Housing.com Pay Rent feature?
Transfer of rent via Housing.com Pay Rent feature takes a maximum of 48 hours.
Can I get rent receipt for payments made via Housing.com Pay Rent?
Yes, you can get digital rent receipts for payments made via Housing.com Pay Rent on your email ID.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
