How to Pay Rent with a Credit Card

Know more about the benefits of paying your rent with a credit card.
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How to Pay Rent with a Credit Card
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3 min
1st November 2023

How to pay your rent using a credit card

Paying rent through online banking options such as NEFT, RTGS, or UPI has gained popularity in recent years. However, none of these options offer you the flexibility of borrow now and pay later. On the other hand, if you choose to pay your rent using the co-brand credit card from Bajaj Finserv, the entire amount can be included in your monthly credit card bill.

Rent is one of the most significant monthly expenditures and paying it with a credit card has its own set of advantages. Especially during a financial situation where you may be going through a cash shortage.

How to pay rent with credit card using different platforms?

You can easily pay your rent using a credit card. The process is extremely simple and customer friendly.

Via merchants:

  • Open the merchant/ partner app such as Housing.com/ Magicbricks/ CRED/ NoBroker
  • Register for rent payment
  • Add your landlord’s account details such as the account name, account number, bank account type, and IFSC
  • Add your Bajaj Finserv RBL Bank Credit Card/ Bajaj Finserv DBS Bank Credit Card on the app
  • Enter your PIN to verify the transaction and pay your rent using the credit card

Via UPI:

  • Enter your landlord’s bank account number, IFSC, and account name
  • Enter your rent amount
  • Select your preferred credit card and enter your UPI PIN

What are the benefits of paying rent through a credit card?

  • Improved credit score
    Utilising your credit limit for huge financial transactions and repaying the bill amount on due time can improve your credit score. An improved credit score positively impacts your eligibility when opting for a loan.
  • Earn reward points
    Making payments such as rent through your credit card will also unlock several perks such as cashback offers, reward points, and a free credit period (depending on the platform)in which you are not required to pay any interest.
  • Annual fee waiver
    Paying your rent using a credit card can help you achieve your annual spending milestone. This can help you save on the card’s annual fee. For example, if you pay your monthly rent using the Bajaj Finserv RBL Bank Binge SuperCard and reach the annual spend limit of Rs. 1,00,000, you can save on the annual fee of Rs. 999.
  • Maintain your rent payment schedule
    Paying rent using a credit card can be beneficial when you are dealing with a fund shortage. Moreover, you can comfortably pay the credit card bill later.

How to make your credit card bill payment?

Factors to consider before paying the rent with a credit card

Here’s what you need to know before using a credit card to transfer your rent:

  • Credit card interest
    Credit card companies/ banks charge interest on expenses made through credit cards. Therefore, despite the free credit period many platforms offer, you should utilise the credit limit as low as possible for rent payment through credit card to pay your credit card bill conveniently.
  • Processing/ Transaction fee
    There is a minimal transaction fee for all rent payments through credit cards. However, it is generally a minimum amount that may vary slightly for different banks. 
  • Credit utilisation ratio and credit score
    You must keep your credit utilisation ratio in check when paying the rent with a credit card. Exceeding your credit limit to a large extent may reduce your credit score. Always stay in a 30% utilisation limit.

What are credit card rent payment charges?

Credit card rent payment charges are fees levied by banks or financial institutions for paying rent using credit cards. These charges can vary from bank to bank and typically range from 1% to 2.5% of the rent amount. The purpose of these charges is to cover the transaction costs incurred by the bank while processing the payment. It is essential to check with your bank or credit card provider before making rent payments through your credit card to avoid any surprises. Additionally, be mindful of the interest rates and late payment fees associated with the credit card to avoid accumulating debt.

Details required to pay rent with credit card

Paying rent with a credit card can help you earn reward points and manage your cash flow, but you need to have the right details to make payments. Here are the details you need when paying rent with a credit card:

  1. The landlord's name and address.
  2. The rental amount and due date.
  3. The credit card number, CVV code, and expiry date.
  4. The payment processing fees charged by the service provider (if any).
  5. The service provider's terms and conditions.

Also check

Types of credit card

Lifetime free credit card

 RuPay Credit Card
Mastercard Credit Card Visa Credit Card

Cashback credit card

Credit card benefits

Credit card offer

Credit card for lounge access

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

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Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

What is the maximum amount that can be transferred for paying the rent with a credit card?

The maximum amount for rent payment through a credit card depends on your credit limit.

Will my credit score be impacted in case I pay the rent using a credit card?

Yes, but only in a positive manner. Paying rent using your credit card can improve your credit score if you repay your bills on time. Delaying in paying your credit card due amount can reduce your credit score.

Learn more about the minimum amount due on a credit card

Can I earn rewards and bonuses by paying the rent using a credit card?

Paying rent through card counts as an expense, and depending on your credit card, you are eligible to earn various rewards and cashback benefits.

Will banks levy a processing fee to pay the rent through a credit card?

Banks may or may not charge a processing fee when you pay rent using a credit card. Any charge applied depends on your card variant and merchant platform.

Is it recommended to pay rent from a credit card?

Yes, you can use your credit card to pay your monthly rent. Paying rent from a credit card can help you increase your credit score and earn reward points.

Does paying rent through credit card affect credit score?

When you use your credit card for rent payments, you must pay your credit bills on or before the due date. This will help you positively impact your credit score.

Are there any additional charges or fees for using the credit card to pay rent?

Some third-party platforms may charge a convenience fee or transaction fee for using a credit card to pay rent. These fees are usually a small percentage of the total amount being paid.

What are the benefits of paying rent through a credit card?

You can earn rewards points depending on your credit card's reward program. Check with your credit card issuer to see if rent payments are eligible for rewards points.

Are there any limits on the number of rent payments with credit cards allowed?

The limit on the number of rent payments using your credit card depends on your credit card issuer and your credit limit. Some credit cards may have restrictions on the frequency or amount of rent payments you can make. Check with your credit card issuer to see if there are any limits on using your credit card for rent payments. Additionally, your landlord or property management company may or may not have their own limits on the number of payments they accept through credit cards.

Can I cancel my rent payment via credit card?

If the rent payment has already been processed, it cannot be cancelled and you will have to work out a repayment plan with your landlord or property management company if required.

Can I use my credit card to pay rent?

Yes, you can use your credit card to pay rent, but it depends on your landlord's payment policies. Some landlords accept credit card payments, while others may require alternative methods like bank transfers or cheques. Check with your landlord or property management company for available payment options.

Can I pay my rent through a credit card?

Yes, many landlords and property management companies accept rent payments via credit card. However, some may charge a convenience fee for this service.

How can I pay my rent with a credit card without fees?

To avoid fees, you can use online banking platforms or payment apps that offer bill payment services. Alternatively, you can ask your landlord if they accept direct bank transfers as a fee-free option.

Is paying rent from a credit card good or bad?

It depends on your financial situation and the benefits offered by your credit card. While it can help you earn rewards or manage cash flow, it's essential to consider any fees, interest rates, or potential impact on your credit utilization.

How can I pay my rent using a credit card?

You can pay your rent using a credit card through various online platforms and services that facilitate such transactions. These platforms allow you to link your credit card and make rent payments directly to your landlord or property management company.

Are there any fees associated with paying rent via credit card?

Yes, there are typically fees associated with paying rent via credit card. These fees can vary depending on the service provider and the amount of rent. They usually include a convenience fee or a percentage of the rent amount as a processing fee. It's important to review the terms and conditions of the payment service to understand the exact fees involved.

What are the benefits and drawbacks of paying rent with a credit card?

Benefits of paying rent with a credit card include earning rewards, points, or cashback, and improving your credit score with timely payments. It also offers convenience and flexibility. However, drawbacks include potential fees, interest charges if the balance is not paid in full, and the risk of accruing debt. Careful management of credit card payments is essential to avoid financial issues.

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