There are many individuals in our country who don’t own their personal home and monthly rent payment forms a big part of their budget. It is usually among their highest expense and they can pay it with their credit card. In the past, landlords always preferred receiving payments in cash, while some people used NEFT, IMPS, etc., but now focus is more on digital, paperless transactions.
Traditionally, landlords were not comfortable in sharing their bank account details. However, after the COVID-19 pandemic, digital transactions grew rapidly and people started paying their rent with credit cards, mobile wallets, etc. There are various third-party apps out there that allow you to pay your home rent using your credit card.
It is recommended to use your credit card to pay rent only if you are sure to pay off your dues in time else you can fall into a debt trap. In this article, we will take a look at every detail related to rent payments via credit card, how to do it, processing fees and charges, offers, and much more.
What to Consider Before Making Rent Payments with Your Credit Card?
Credit cards charge a very high interest rate so there are various factors you must consider before you pay your house rent via credit cards. Here are the most important ones –
Impact on Credit Score – Rent payment is usually a considerable amount of money and when you pay it with your credit card, your credit utilisation ratio is sure to increase. This ratio is important as a high ratio can negatively affect your credit score.
Processing Fees – When you make a rent payment using your credit card, the card issuer company or bank will charge a transaction or processing fee for the service. The fee can be anywhere between 1 to 5% so you will have to pay a high processing fee if your rent payment is high.
Interest – Credit cards charge a high interest rate. If you do not pay your card bill on time, a high interest will be charged on your outstanding dues and will keep adding up over time. When you pay rent with your credit card, make sure you are well equipped to clear your credit card dues on time.
All of these factors are vital to take care of because if you are not careful with paying rent with a credit card, your credit score can take a hit and you may end up paying high amount of interest. Only use your credit card for paying rent when you are confident about paying off your bills on time.
Pros of Paying Rent via Credit Card
There are several benefits of making your rent payments through a credit card. Some people who have to pay their rent at a date before they receive they receive their salary, it is a great option. You can also earn several benefits and reward points that come with using your credit card.
Benefits & Reward Points – Almost every card offers certain benefits and reward points when you spend money with it. You can earn reward points by making your rent payment with the card and these points can be redeemed as cashback, for flight/hotel bookings, purchasing products and gift vouchers, etc. Some card issuers also have exclusive offers for rent payments with credit cards and you can reap their benefits.
Easy Money Transfer via 3rd Party Apps – You don’t need to withdraw money from an ATM or go to the bank to fill up forms and cheques to make your rent payment. You can use your credit card for rent payment through reliable 3rd-party applications like Cred, Housing.com, RedGiraffe, etc. You can make the payment with minimum formalities and convenience. You can set standing instructions through these apps and your rent payment will be automatically transferred on the specified date.
Timely Payments – Certain people receive their salary on the 7th or 15th of each month and they may have to pay their rent on the 1st or 3rd. A credit card will help you make a timely payment of rent in such cases. Also, you can set standing instructions and your rent will be automatically paid through your credit card on the specified date. You don’t have to remember any due dates and will not forget any payment.
Improve Your Credit Score – You can utilize your credit limit to pay rent and make timely repayments to improve your credit score. Make sure to not use more than 30% of your card limit as it can negatively affect your credit score. Also, if you think you may face issues in repaying your card dues, avoid using your credit card to pay rent and opt for cash or an account transfer.
Achieve Spend-Based Milestones – Most credit cards these days come with milestone benefits like annual fee waiver and attractive rewards upon spending a determined amount of money. Usually, house rent is a high amount and you will earn reward points on making the payment. You can even waive off your credit card renewal fee by reaching a certain spending milestone.
Cons of Paying Rent via Credit Card
No doubt there are many advantages of paying rent through credit cards but there are several disadvantages associated with it too.
High Credit Utilization – House rent is generally a high amount which means your credit utilization ratio can increase a lot. Your credit score will be negatively affected when you utilize more than 30% of your card limit. In such cases, you will find it difficult to get loans or get approved for new credit cards in future.
Higher Bill Amounts – If your home rent is very high, it will increase your credit card bill by a lot and it also may go out of your budget. In case of a high bill, you may find it very hard to pay your entire card bill or even the minimum amount due. This affects your credit score and high interest is charged on the outstanding amount.
Missing Payments – You may try to make your rent payment with your credit card but it may not succeed in some situations. It is possible that you have exceeded your allotted card limit or your credit card has expired. You will miss payments in this case and will have to look at other payment methods.
High Interest Rate – Credit cards charge a very high interest rate on your outstanding dues. If you are unable to clear dues on time, a very high amount will be charged as interest and you can fall into a vicious debt trap.
High Processing Fees – Almost every bank or card issuing company charges a certain processing fee for paying rent with your credit card. The fees can range between 1% to 5% and if your house rent is very high, then you will have to pay a very high processing fee as well. Third-party apps used to make the payment also charge convenience fees from customers.
Bank Processing Charges on Rent Payments via Credit Cards
Here are the processing fees charged by major banks and card issuers on paying rent with your credit card and the reward points you can earn on the payments –
|Card Issuer/Bank||Processing Charges||Reward Points|
|Axis Bank||1% plus taxes||On Magnus and Atlas cards reward points will accrue up to transactions of Rs. 50,000 per month On Reserve and Burgundy Private reward points will accrue up to Rs. 1 Lakh per month|
|HDFC Bank||1% plus taxes from the 2nd rental payment in a month||None|
|SBI Bank||Rs. 199 plus taxes||Regular reward points based on card variant|
|ICICI Bank||1% plus taxes||Regular reward points based on card variant|
|Bank of Baroda||1% plus taxes||Reduced reward points based on card variant|
|Kotak Mahindra Bank||1% plus taxes except on White & White Reserve cards||Regular reward points based on card variant|
|AU Bank||No charges on 1st transaction. 1% plus taxes on 2nd transaction per month||1.25% on Zenith and 1% on other cards|
|Standard Chartered Bank||1% plus taxes||2% on Ultimate, regular reward points on other cards|
|HSBC Bank||1% plus taxes||Regular reward points based on card variant|
|RBL Bank||1% plus taxes||Regular reward points based on card variant|
|IndusInd||1% plus taxes||0.7% on every card|
|IDFC First Bank||1% plus taxes||3x reduced reward points|
|Yes Bank||0.5% plus taxes||Regular reward points based on card variant|
How to Pay Rent via Credit Card?
It is relatively easy to pay rent to your landlord’s account with your credit card but you will have to use a third-party rent application. Almost every application follows a similar process to pay rent and you will have to provide some information like your details, credit card details, details of the property, rent amount, landlord’s account details.
Here is how you can pay rent on any third-party rent payment application using your credit card –
- Download a rent payment app and register on it using your basic personal details.
- You will have to enter your landlord’s details like mobile number, account number, IFSC Code, PAN number, etc.
- Some applications may also ask for property details lime address, rent agreement, etc.
- After adding your landlord as payee on the application, you can proceed with the payment. Enter your credit card details and complete the transaction.
- You can even set standing instructions for auto-payment and the rent amount will be automatically transferred to your landlord’s account on your specified date.
Almost every rent payment application follows a similar payment process and you can use any application that you like. Next, we will take a look at the best 3rd-party rent payment applications that you can use to pay rent with your credit card.
Best Rent Payment Applications and Platforms
A merchant needs a POS terminal or an online payment getaway to receive a payment through a credit card but a landlord will generally not have these. Therefore, a rent payment platform has to be used to make payments with your credit card. You add your landlord’s account details in the application and the application sends the money to his account.
There are several rent payment applications that you can use and we will talk about the best options available –
Cred is one of the most-used credit card bill payment application that rewards its users on making timely payment of their credit card bills. You can use the application to pay your rent and you will earn cashback and other rewards on making the payment. It features a sleek, user-friendly interface, and can be used to pay UPI IDs as well. Also, depending on your credit card network, you will be charged 1-1.5% as processing fees.
Here is how to pay rent using your credit card via Cred –
- Download the Cred mobile application on your smartphone and sign up using your details
- Click the Pay option in the bottom bar and then select Rent pay option.
- Enter your rent amount. The final amount will also include processing charges in addition to the rent amount.
- Next, click ‘Proceed with your credit card’ and enter your credit card details in the necessary fields.
- Enter some basic details regarding your landlord like name, phone number, and banking details. You can provide either bank account details or the UPI ID.
- Click on proceed to payment next and complete the process.
RedGiraffe is a popular and highly dedicated rent payment app which was one of the first ones to offer the service. The user experience of the app can be better but it has integration with multiple banks and offers a very low processing fee as compared to other applications. You will need to upload your Rent Agreement if your rent is above Rs. 20,000.
- Visit the official website of Redgiraffe and click on Get Started under RentPay.
- Click on Credit Card and then choose RentPay out of the available options.
- You will see the Pay My Rent page. First, add the tenant details along with address.
- Enter the rental details including rent amount, rent agreement expiry, etc.
- Next, you have to enter the owner information and his bank account details
- Upload your rent agreement and click on Next.
- Enter your credit card details and proceed to make the payment.
Housing.com provides customers with a rent payment feature that is user-friendly and simple to use. You have to download the app to make rent payments and have to make a minimum payment of Rs. 3000. The signing up process is easy which doesn’t require any documents and the rent payment is usually settled within an hour.
- Visit the official Housing.com website and click on Pay on Credit option. Next, click on the House Rent category.
- Enter your mobile number and verify with the OTP.
- Enter your Rent Amount along with the bank account details of the landlord.
- Next, enter your credit card details and click on Pay Now to process the payment.
- The transaction will be completed within 24 hours and reach your landlord’s account.
One of India’s best platforms to purchase, sell, and rent properties, you can also use Magicbricks to pay your home rent via credit card. For Visa and Mastercard users, the app charges a low 1% processing fee. It is a safe app with your credit card details and your landlord’s bank account details being totally secure. Your landlord will get the payment within 1 day and you will receive an instant receipt at your email address. Here is how to make the payment-
- Open the official website of Magicbricks and hover your mouse on the Property Services button. Click on Pay Rent with Credit Card.
- Enter your basic details like name, phone number, and Email ID. Verify your number with the OTP.
- Enter the Rent Amount, residing city, landlord name, and account details. to continue.
- You can upload Rent Agreement now or later along with the expiry date. Click on Make Payment to proceed ahead.
- Enter your credit card details to make the payment. You won’t be chared any convenience fees if you have a AU Bank, IDFC Bank, or HDFC Bank credit card.
One of India’s most popular platform for paying bills, mobile recharges, ticket bookings, etc. you can pay rent through your credit card on the application. When making your rental payment, you can choose to transfer funds to your landlord’s UPI ID or bank account. Here is how you can pay the rent using Paytm –
- Download the Paytm application on your smartphone and set up your account.
- Click on Recharge and Bill Payments and then select Rent via Credit Card.
- Next, you have to click on House Rent.
- You have to enter your landlord details. Provide the landlord’s bank account number and other details. Next, click on Proceed.
- Enter the amount of rent to be paid and select Click on Pay.
- Click on New Payment Option. Enter your credit card details and then click on Pay.
A platform by Axis Bank, Freecharge is a nice payment app through which you can pay your rent easily via your credit card. It is simple to send money to your landlord’s bank account just by entering minimal details and make the payment with your card. Here is how you can pay rent at this platform –
- Open the official Freecharge website and click on Rent via Credit Card
- Enter your mobile number and then enter the OTP for verification
- Enter your personal details like name, email ID, pincode, and then Proceed
- Next, you have to enter the recipient’s name, mobile number, and bank account details
- Enter the rent amount, property address, and other required details
- Next, you can enter your credit card details and proceed with the payment.
A real estate application through which you can sell, purchase, and rent properties. The app allows you to pay society maintenance and rent using your credit card. Use your Mastercard or Visa credit cards to make rental payments on the app and earn exclusive rewards. Here is how to pay rent at this platform –
- Visit the official NoBroker website and click on Pay Rent with Credit Card
- Enter your mobile number and verify it with the OTP
- Enter your landlord’s basic information and bank account details.
- Enter your rent amount and proceed to the next step
- Enter your credit card details and complete the payment.
|Rent Payment Platform||Processing Fees||Supported Credit Card Networks|
|Cred||1 to 1.5%||Mastercard, Visa, RuPay|
|Redgiraffe||0.45%||SBI, Standard Chartered, HSBC, Kotak, IndusInd|
|Magicbricks||0% on partner cards and 1.5% on others||Mastercard, Visa, HDFC, Razorpay|
|NoBroker.com||1%||Visa, Mastercard, HDFC, Amex|
|Paytm||1 to 1.5%||Mastercard, Visa|
|Freecharge||0.9%||Axis Bank, Mastercard, Visa|
If you are considering to pay your house rent with your credit card, make sure to consider the advantages and disadvantages we talked about above. Rent payments via credit cards can be great for some but they can land others in a debt trap. If you are sure about repaying your dues on time, you can pay rent through credit cards and earn exclusive reward points and other benefits.
There are charges and offers on rent payments through credit cards by different banks, so make sure to keep yourself updated about them. Also, there are many rent payment platforms and you should choose a one that is convenient to use and offers exciting benefits, cashback, and other rewards.
With our country rapidly switching on to digital payments, rent payments via credit cards is certainly something to consider. However, if your financial condition is not good, you should refrain from using your credit card to pay rent or your credit score can be negatively affected and you may get into a mountain of debt.
CRED has stopped accepting Amex card for rent payment. Earlier Paytm used to accept, now they’ve also stopped
Hi Thanks, Article has been updated
Can you also cover Paymatrix for rent pay, I hope now its the only platform accepting rent pay thru Amex cards
The charges on Paymatrix is very high, so we skipped it. They charge 3%+GST on Amex Cards
Paytm has started charging 1.5%. kindly update the article.
Thanks Updated 🙂
I found freecharge charges very low interest rates…just 0.9%…..Please include this
Very useful article. Thanks for keeping this up to date!
Magicbricks – Pay Rent and get 100% discount on processing fees up to INR 350/- using RuPay Credit Cards.
Valid – 1st August to 30th September 2022
All Rupay credit card users will get a 100% discount on processing fees up to INR 350/- (incl. GST) on the Magicbricks website or app.
Valid only on Rupay Credit cards.
Applicable once in 20 days.
Subject to a minimum rent payment of INR 8,334/- in a month.
Applicable only for House Rent, Society Maintenance, Shop rent, and Security Deposit.
Valid Rent Agreement to be uploaded to avail of the offer.
If the Rent agreement is uploaded later, by selecting the Upload later option.
Processing Fees would be refunded as cashback within 14 days from the day of upload.
Users need to upload a rent agreement within 72 hours for an upload later option.
Not up to date info. As of Dec 2022, Magicbricks has increased the charges on rent payments.
What woudl be teh best way to pay rent/maintenance now through credit card as magicbricks has reduced the benefit to 150/- and also 2nd payment can’t be done before a gap of 20 days from previous one?
Has Axis Magnus dropped privileges for rent payment ?