Know How To Pay Rent With a Credit Card and Its Benefit

Wondering how you can pay rent with a credit card? Paying for recurring expenses without any hassle of remembering the due dates is among many attractive features of using credit cards. You can pay the monthly amount directly to your landlord’s account using a credit card.

Apart from the convenience, there are several other benefits attached to the payment process. By understanding the process properly, you can take maximum advantage of using a credit card to pay rent. 

Advantages of Rent Payment With a Credit Card 

Amongst the other responsibilities, certain routine payments may get overlooked due to your busy lifestyle. You can enjoy stress-free home rent payments by setting a standing instruction for rent payments. Here are a few added benefits:

• Utilising the Grace Period: You can make use of the interest-free period of 45-60 days and repay the dues over an extended period. It can be most helpful in case of emergencies, as you can use the grace period as a financial buffer. This flexibility helps you allocate funds towards other liabilities for the month during a cash crunch.

• Earning Rewards: By paying rent with your card, you can earn reward points, cashback and discounts. Ensure you select a credit card that provides a lucrative reward system on bill payments. That way, you can save more while paying the rent.

• Making Use of Automatic Payments: By using the auto-debit facility for rent, you provide standing instructions on your credit card to make rent payments on a particular date every month. This ensures seamless deductions and eliminates any chance of missing your payment date.

• Earning Welcome Bonus: Many issuers provide a sign-up bonus when you get the card. You can access the bonus by spending a specific amount in a certain amount of time. By paying rent using your card, you can cover a large amount of the required threshold. That way, you can earn the sign-up bonus without overspending.

• Getting a Statement as Proof:  You receive a statement showcasing your payment. This can act as proof of rent payment should you need to send it to your landlord. In addition, paying your rent this way also enhances your credit score. This is because timely payments are recorded in your credit history and reflect positively in your records.

How to Pay Rent Using a Credit Card? 

By following the needed steps, you can ensure a smooth payment procedure:

• Step 1: Confirm with your landlord whether they’re accepting rent payments via credit card 
• Step 2: Choose a secure and safe platform to pay rent, create an account by providing your details and link your credit card
• Step 3: Set the necessary details like due date, amount and landlord’s details
• Step 4: Check the details and confirm the payment

It is crucial to note that some third-party platforms may charge transaction or processing fees. Despite the convenience, this may outweigh the related benefits. Check this before proceeding with such an option. Besides that, you should keep an eye on your credit limit for other expenses, as there is a chance of maxing out. This can have an adverse effect on your credit score.

As of 2024, many credit card companies have stopped offering rewards on rent payments. This is also due to the fact that the Reserve Bank of India has expressed its concerns about payments between two individuals rather than an individual and a verified merchant. Such payments may be misused, which is why this facility may soon be banned. 

While it is still allowed, knowing how to pay rent using a credit card can help you during a difficult time or increase your convenience. You can also use your credit card for various other payments, such as electricity bills, phone bills and more. The Fibe Axis Bank Credit Card can be an excellent choice for such recurring payments with an interest-free period of up to 50 days. 

You can also enjoy hassle-free UPI payment and other benefits like a 1% waiver of fuel surcharge and free access to domestic airport lounges. Download the Fibe App or register on our website to apply for this credit card and enjoy its benefits without any annual and joining fees!

FAQs on Rent Payment Using Credit Cards 

Can I earn reward points or cashback when paying rent with a credit card? 

As of 2024, most financial institutions have discontinued reward points or cashback if you use a credit card to pay rent. However, you may be able to access benefits if you use certain third-party platforms or certain cards.

Are there any limits on the amount I can pay with a credit card? 

Yes, you can only make transactions within your credit card’s credit limit as well as the limit the issuer has set on rental payments, if any. 

Is it safe to pay rent with a credit card? 

Yes, it is safe to pay rent with a credit card. The transaction also gets recorded in the card statement that you receive at the end of the month. 

Are there any specific credit cards that offer better benefits for rent payments? 

Since the features are updated often, check the benefits related to rent payments by reading the MITC document on credit cards. 

How does paying rent with a credit card impact my credit card balance and utilisation? 

When you make any transaction using your card, including rent payments, your credit limit is reduced by the corresponding amount. Therefore, you can only use your card up to the remaining credit limit for that particular cycle. Similarly, depending on your credit limit and rent amount, your credit utilisation ratio may also increase.