How To Pay Rent Through Credit Card

Rent Payment Through Credit Card

People nowadays use 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: 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 details 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 cards 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 making 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 steps to avail of the benefit:

Step 1: Log In to the net banking page through the 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 be generated. 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 to pay 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