How To Pay Rent Using a Credit Card

You can pay your rent using a credit card through online platforms directly to your landlord. Add your card details on the app and link it to your UPI for instant payment or enter them on merchant apps for the same purpose. Below are the detailed steps:

Through UPI Apps

To pay rent using a credit card, you can add your card details to any UPI app such as Paytm, PhonePe, Google Pay, Amazon Pay, Bhim UPI, etc. To do this, follow these steps:

1. Open your chosen UPI app and navigate to settings or payment methods section

2. Link your credit card to the UPI app by entering the necessary details, such as the card number, expiry date, and CVV

3. Verify this process through a One-time Password (OTP) sent to your registered mobile number

4. Once your card is linked, open the app and select the option to send money or pay bills

5. Choose the rent payment option if available, or select 'Pay with UPI'

6. Enter your landlord's bank account details or their UPI ID

7. Input the rent amount and choose your linked credit card as the payment method

8. Review all details and confirm the payment by entering your UPI PIN for verification

 

Note: Only RuPay cards can be linked to UPI.

Through Merchant Apps

Merchant apps such as NoBroker, Housing.com, and CRED allow you to use your credit card to pay rent. To make rent payments with a credit card, you can follow the steps:

1. Download a merchant app and register

2. Open the merchant app and select rent payment

3. Register for rent payments 

4. Add the landlord's bank details, such as account number, name, type of bank account, and IFSC code

5. Add your credit card details, such as name, CVV, and expiry

6. Enter your PIN and complete the transaction

 

There may be a convenience fee added to this transaction, so ensure you are aware of it before proceeding. 

Through a Lender’s Mobile App

Many credit card companies provide a mobile app through which you can pay your rent. Here are the steps you need to follow:

1. Open the lender's app and navigate to the payment section

2. Enter the landlord's details such as bank details, UPI ID, or phone number

3. Enter the amount you want to pay

4. Choose your credit card as the payment option and enter your PIN to complete the transaction

 

Many lenders also allow you to schedule payments every month by enabling the auto-debit facility.

Rent payment through a credit card helps cover this expense in times of financial shortfalls. Some other benefits include the following:

• Many credit cards provide reward points or cashback specifically for rent payments specifically

• With consistent rent payments using your credit card and timely repayment of your bills, you can improve your credit score over time

• Many apps allow you to schedule payments using the auto-debit feature, ensuring you never miss or delay your rent payment 

• Some apps give you cashback or other perks when you use your credit card to pay rent

Before using a credit card to pay rent, you must think about additional charges and whether you can pay your bill in full by the due date. Here are the factors to consider in detail:

• Associated Fees and Charges

Paying rent with a credit card often comes with additional fees, such as processing charges or transaction fees. If you use your card and are not able to pay the credit card bill on time, interest and late payment penalties will apply. 

 

It is crucial to be aware of these charges, as they can significantly increase your overall expenses. 

• Impact on Credit Score

Delayed or missed credit card payments can negatively affect your credit score. To protect your credit score, it is essential to manage your credit card payments responsibly and avoid any overdue payments.

• Impact on Credit Utilisation Ratio (CUR)

The CUR compares the amount of credit you have used to your total available credit limit. Ideally, this ratio should be below 30%. Plan your rent payment via your card in a way that the CUR remains healthy.

You typically need to pay an extra fee when making rent payments with a credit card based on the issuer and the type of card you choose. Normally, these fees range from 1% to 3% of the rent amount and are imposed to cover the transaction or processing costs incurred by the bank.

 

In addition to the transaction fees, it is essential to be aware of the interest rates and late payment charges associated with your card. These can accumulate quickly, leading to significant debt if not managed properly. Always ensure you are clear on these costs to avoid any unexpected financial burdens.