Rent payment through a credit card helps in quick and hassle-free transactions. You can also receive a few rewards and discounts when you do transactions through a credit card. Check this article to know about the benefits, challenges, the process of paying rent through a credit card, and the transaction charges.
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Rent Payment Through Credit Card
People nowadays uses the method of paying their rent through credit cards as it is easier and also removes the hassle of delayed payment.
Paying rent through a credit card is a faster method as it is hassle-free. Some banks also offer few benefits or discounts when you pay your rent every month through their credit cards.
When you do not have cash, it is advisable to use a credit card to pay rent because you will receive rewards compensating for the service charge. You will receive rewards and discounts every time you pay your rent through a credit card.
Benefits Of Paying Rent Using A Credit Card
There are a few benefits of paying rent using a credit card and they are:
- Earn reward points: A lot of financial institutions offer rewards like discounts or credit points while paying rent every month through their credit card.
- Free credit period: By paying rent through a credit card will add a credit period of 45 days to pay the credit bill. You should pay your bill with a credit card within these days to avoid any kind of penalty or interest.
- Improving credit score: A proper payment of the credit card bill and rent will improve your credit score.
- Few formalities: If you are paying the rent using a credit card then you will need to just fill owner’s detail once and it will be saved forever.
- Meeting annual spending limit: If you pay rent through a credit card, then the annual spending limit will increase.
Process Of Online Rent Payment Through Credit Card
The process of online rent payment through credit card is different for different financial institutions. However, the process includes very few easy steps like making an account through the registration process, fill details, and finally do the payment.
Let’s take an example of a bank:
SBI (State Bank Of India) offers its customers the benefit of easy payment of the rent through their credit card. The following below steps to avail the benefit:
Step 1: Log In to the net banking page through SBI online or SBI mobile banking application
Step 2: Fill in the required information
Step 3: Add SBI Credit Card to pay for the bill
Step 4: Fill in the information on your card and the amount to be paid. Make the payment
Step 5: A transaction ID will generate. Take a screenshot of the same for future reference
The amount will be reflected in the credit balance within 3 working days by the bank.
Things To Know Before Paying Rent Through Credit Card
- When you are unable to pay the rent at the specified time, you can take a grace time from the landlord and pay the rent later.
- You should spend your credit card in a planned manner. Otherwise, the expenses and the bill amount will increase unnecessarily without your notice.
- If you are facing issues in paying the rent every month, then you should consider checking the limit of your credit limit. If the rent is higher than the limit available, then it may cause debt.
- You have to constantly check the expiry date of your credit card so that if auto payment of rent is on, then you do not miss the payment. It can also happen if, before the due payment date, the credit limit is exceeded your credit card.
- If your rent is Rs 50,000 then you need to upload the rent agreement for paying the rent
Rent Payment Through Credit Card Without Charges
The rent payment always includes some service charge as it is their revenue. Hence, different banks include different banking processes and service charges.
This service payment is charged in exchange for maintaining their transaction from both ends, securing data, and ensuring very minimal chances of transaction failure.
However, it is important to note that the offers and rewards received from payment of rent through credit card, compensate for the service charge deducted.
Disadvantages Of Using A Credit Card To Pay Rent
There are a few disadvantages of using a credit card to pay rent like paying extra as a service charge to the banks just for transacting the money from one account to another.
If you are skipping your credit card bill payments, then it may affect your credit score. After the time period of 45 days, if you are not paying your bills, then you will have to pay the penalty amount along with the actual amount.
FAQs
| Q1: Are there any fees chargeable for the rent payment transaction through credit card?
Ans: Yes, banks do charge a very minimal amount for their rent payment transaction through credit cards. This charge acts as revenue for the employees to securely complete the transaction. However, the rewards provided by the banks generally compensate for the charges. |
| Q2: How will my rent payment get transferred to the recipient’s account?
Ans: The bank will transfer the amount directly to your recipient’s account when you complete the transaction. |
| Q3: Does my recipient need to have an account in the same bank?
Ans: No, the recipients can have an account in a different bank and still can receive the rent amount. You just need to provide the correct account number and IFSC code. |
| Q4: Which types of rent are payable through credit card?
Ans: All types of rents like house rent, property token, shop rent, any property deposit, and broker’s payment through credit card. |
| Q5: How will I get rewards while doing payments through a credit card?
Ans: The type of credit card used will define which offers are available. You can receive cashback, reward points, instant discounts, vouchers, etc. |
