Rent Payment With Credit Card: Six Apps To Use

Rent payment apps: Paying rent with credit cards has become a popular option in India, offering convenience, rewards, and flexibility. Tenants can easily transfer rent directly to their landlords’ bank accounts or UPI IDs. These apps often come with added perks like cashback offers, reward points, and automated payments, making the process seamless for users.

6 apps for paying rent using credit cards

Paytm

Paytm, one of the popular digital payment platforms in India, offers experience for paying rent via credit cards. It charges a 1% convenience fee plus GST. With features like a 45-day interest-free period, digital rent receipts, and integrated bill payment options.

PhonePe

PhonePe, another widely used app, introduced its rent payment feature in 2021. Charging a 1.70% convenience fee plus GST, it supports American Express cards, automated payment options, and provides incentives like cashback and rewards. PhonePe also offers a record-keeping feature for both tenants and landlords.

CRED

CRED, known for its credit card management services, has extended to rent payments with fees ranging from 1% to 1.75% plus GST. It offers features like automated recurring payments, digital record-keeping, and cashback or rewards on rent transactions.

NoBroker

NoBroker, popular for property-related services, charges a 1% convenience fee plus GST for rent payments. Users can earn up to 30,000 reward points and receive rent receipts within two working days of the transaction.

RedGirraffe

RedGirraffe stands out with its low service fee of 0.39% plus GST. It allows users to set up auto-payment alerts for timely transactions and offers a hassle-free yet detailed registration process.

Freecharge

Freecharge by Axis Bank charges a 0.9% fee for rent payments. It allows users to manage up to three landlords, transfer up to Rs 2 lakhs daily, and earn up to 3x edge reward points when using Axis Bank credit cards.

To get started, tenants need to register on their preferred app, complete the verification process, and enter the landlord’s details. The app then allows them to select a credit card as the payment method and complete the transaction.

Maximise, but manage

One of the major advantages of using credit cards for rent payments is the ability to earn reward points and enjoy an interest-free period of up to 45 days. Additionally, such transactions can contribute to building a healthy credit score and help users achieve annual spending milestones on premium credit cards.

This can be especially beneficial for tenants looking to leverage rewards for travel or other expenses.

However, paying rent with credit cards isn’t without drawbacks. Most platforms charge a convenience fee, typically ranging from 0.39% to 3% of the rent amount, which can add up over time.

There’s also the risk of overspending, especially if tenants fail to clear their dues within the interest-free period. Furthermore, high credit utilisation may negatively impact one’s credit score if balances remain unpaid.

Weigh your options wisely

For tenants, the decision to use credit cards for rent payments largely depends on their financial habits and goals. It’s a viable option for those who are disciplined with repayments and want to take advantage of the associated benefits. However, for those prone to overspending or unable to clear dues on time, the additional charges might outweigh the rewards.

Tenants must weigh the pros and cons, compare app offerings, and ensure they’re managing their credit effectively. A careful approach is key to maximising its benefits.