Other Ways To Pay Rent With A Credit Card:
Cash Advance : You can take out a credit card cash advance at an ATM, at a branch or by using a convenience check. However, note that credit card cash advances have very high fees and interest rates. The average cash advance fee is over 3% and the average APR is over 21%. Plus, theres no grace period, so interest starts accumulating immediately.
Balance Transfer : This method is targeted towards individuals who have too many expenses to cover and too little cash on hand. Though you wont be paying your rent with a credit card directly, you can shift some of your other expenses onto a credit card , leaving more available cash to pay your rent.
Five Things You Need To Know About Credit Cards As Brits Take On 900m In Extra Debt
- 11:37, 14 Jan 2022
FAMILIES struggling to make their cash stretch might be tempted to turn to credit cards – but here’s five things you need to know before using one.
Banks reported an increase in demand for credit cards in the last three months of 2021, according to research from the Bank of England.
Brits took on a total £1.23billion worth of debt in November, with families adding an extra £900million to their credit card debt.
This came during the run-up to Christmas as people were starting to feel the heat on the ongoing cost of living crisis.
Prices on household essentials, food, fuel, travel and energy bills are all on the up.
And the cut to the £20 Universal Credit uplift in October last year means low income families are being hit the hardest.
The spiralling cost of living means 3.2million households could be facing financial crisis, Citizens Advice has warned.
It means millions could be in the red or unable to cover essentials – and might look to take out credit to get by.
The Digital Payment Era
Now its easier than ever to make rent payments.
You have NEFT, IMPS, and even UPI to make rent transfers.
Pro Tip: Use to set up payments directly to bank accounts. Select New Payments, and then click on Bank Transfer to add the receivers bank details. The receiving party does not need to be a Google Pay user.
But theres one downside to all these payment modes.
You need to have money in your bank account to make payments.
What if you are short of cash?
If you have an emergency fund in place, you can dip into it. However, not everyone will have a backup.
Enter credit cards.
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Is It Wise To Pay Rent With Credit Cards
Paying rent with a credit card is convenient, but it usually isnt free. And it isnt as quick as direct deposit or hand-delivering payment, either Plastiqs paper checks, for example, take five to seven business days to arrive.
To determine if paying rent with a credit card is worth it, youll need to compare the value of the points youd earn to the fees youd pay.
Youll also need to ensure your transaction will count as a purchase and not a cash advance.
Lets break down a sample situation:
- You have the Chase Sapphire Preferred® Card , for which you earn one Ultimate Rewards point per dollar spent on transactions like these.
- UR points are worth $0.01 each when you redeem them for statement credit. When you redeem them for travel through Chase, or transfer them to a travel partner instead, you can get a value of around $0.02 per point or more.
- Your rent is $1,000 per month, or $12,000 per year.
- Theres a 2.5% fee to pay your rent with a credit card, amounting to an extra $300 per year.
- For your rent payments, you spend $12,300 per year on your credit card, earning 12,300 UR points.
If you value UR points at $0.02 each, you just earned $246 worth of points and paid $300 in fees. Thats probably not worth itunless you place a higher value on UR points, or are in the situation below.
When You Should And Shouldnt Pay Rent With A Credit Card
For most people, paying rent with a credit card is not worth the expense. Weigh the pros and cons to decide for yourself.
Consider paying rent with your credit card if
Avoid paying rent with your credit card if
- Youre just trying to kick the can down the road. You can defer your rent payment by putting it on your credit card but next month, the same payment will be due like clockwork. If youre having trouble paying your rent, contact your landlord. They may be willing to work with you to make rent payments more manageable.
- Its not much more convenient than paying through existing methods. On a rent payment of a few hundred or thousand dollars, a 3% fee can significantly increase your rent costs.
- Youre keeping an eye on your credit score. Putting a big charge on your credit card will raise your credit utilization ratio, which could put a dent in your credit score. If youre looking to open a line of credit soon such as a mortgage, car loan or another credit card it may be wise to avoid taking on more debt right now.
- Youll have trouble keeping up with credit card payments. Its never a good idea to rack up a lot of debt on your credit card. If you plan on paying only the minimum toward your balance each month, consider avoiding a credit card rent payment. You stand to quickly accumulate interest that could throw you into an endless cycle of debt.
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How To Make Rent Payment Using Credit Card
Here are two popular service providers in India to pay rent using credit cards.
#1: Red Girraffe
Red Girraffe offers the ability to pay rent using your credit card.
PROs of the service:
- At 0.39% + GST fees, its the cheapest provider
- Genuine service
- Additional offers/coupons on regular rent payment
- Set it and forget it approach. I have paid 6 months of my rent through Red Girraffe
CONs of the service:
- The interface is clunky. There is an approval process in place
- You need to upload your rent agreement for rent > Rs 50,000 per month
- Payments are fully automated. To cancel your rent payments, you need to email them.
- Limited bank support IndusInd, ICICI, HDFC, Kotak Mahindra, YES, Standard Chartered, Payzapp, and RBL
Once, I emailed Red Girraffe and got confirmation of cancellation. However, the rent payment still went through, and I ended up paying my landlord twice.
Advice: If you have a supported card, Red Girraffe offers you the cheapest rent payment option. If you dont mind the outdated interface, consider Red Giraffe to pay your monthly rent.
#2: No Broker
No Broker is another prominent player I have used to make regular rent payments.
PROs of the service:
CONs of the service:
PROs of the service:
CONs of the service:
Cred Rentpay Credit Card Offers
when you pay rent on CRED through credit card, you get various discounts and cashback offers depending on your credit card issuer. to check credit card offers on CRED rentpay services, login to your CRED account, go to the CRED rentpay page. there you will see all the offers on various credit cards. the credit cards offer benefits such as – cashback, discounts, lucky draw, exclusive reward points etc.
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It’s That Time Again Your Rent Payment Is Due Instead Of Paying By Cash Or Cheque Is There Any Way To Pay Rent With A Credit Card
If cash is tight or you want to optimize rewards, you might be wondering if its possible to pay rent or a mortgage with a credit card. You can pay rent with a credit card, but you will likely incur some additional fees. As for a mortgage, most lenders do not allow you to make payments by credit card. In the rare case that a mortgage lender does accept credit card payments, you will probably incur additional charges to complete the transaction. Fortunately, there is a loophole you can use a third-party bill payment service.
You can learn more about how to pay rent with a credit card and how to pay a mortgage with a credit card below.
Should You Pay Rent Through Credit Card
It depends on which credit card you hold.
Ideally you should, as the benefits are well worth it. But not everyone has premium cards, now thats the problem.
If you dont have cards that gives you returns as equal as the service fee or more, there is no point in using the credit cards for paying rent.
Ideally most premium and super premium credit cards gives you enough reward rate to take care of the service fee.
If you dont know how much % of return your credit card gives as rewards on each spend, do check out the reward rate % mentioned in the list of best credit cards in India, and choose the right credit card with a higher reward rate that fits you.
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Benefits Of Paying Rent Online Using Housingcom
Housing.com Pay Rent feature enables quick transfers, along with loads of benefits and offers. Users can also generate rent receipts instantly, for claiming tax deductions on their house rent allowance. The Pay Rent feature is available for credit card, debit card and UPI payments. Along with this,Housing.com offers exclusive rewards and deals from leading brands, against rent payment through credit card. This is over and above the credit card reward points that banks offer for credit limit utilisation. So, as compared to any other service provider, users get to earn additional discounts, offers and a lot more goodies,by using Housing.coms Pay Rent feature.
While the Pay Rent platform allows rent payment through UPI and other mediums, credit card payments are the most rewarding, if you are planning to pay timely rent without putting your cash flows under stress.
How Does Rent Payment Using Cards Work
Step #1: Register an account
Choose a service that supports rent pay using a credit card. The next section has two recommendations you can try.
Step #2: Provide the required details
Pro Tip: Make sure the bank account details are correct. Send a test transfer using or Net Banking before adding it here.
Step #3: Make the payment
Go through the payment flow to make the payment. The payment will be rent amount + additional charges.
Some platforms will also let you set up auto-pay. If you enable auto-pay, your credit card will be charged automatically every month for the rent amount.
Pro Tip: I recommend turning off the auto-pay feature to retain more control.
Step #4: Money Transferred
The platform will charge money to your credit card. They will then transfer the money to your landlords bank account.
Both the tenant and the landlord will receive a confirmation message if the transfer is successful.
Depending upon the provider you choose, it can take up to 2 working days for the transfer to complete.
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It Gives You Flexibility
Even if you’re not after a sign-up bonus or rewards, paying your rent with a credit card can be a good idea if you need a bit of breathing room.
Let’s say your rent is coming soon, but you don’t get paid until a few days after it’s due, and your savings account went toward a medical bill you’re down to the last penny. In this case, using your credit card gives you the ability to cover rent without having to pay a late fee. You can charge it on your card, then pay it off once payday is here.
The key here is to pay it all off once you get paid. Otherwise, you’ll have to pay interest on your rent, and are at historical highs.
Can You Pay Your Rent With Your Credit Card
In most cases, landlords wont accept as a method of payment for rent. They usually prefer cheques, direct deposits or even cash. While your landlord may not accept credit cards as a method of payment there are third-party apps and rent pay services that allow you to use your credit card to pay rent. These services work by collecting your credit card payment and then depositing it in your landlords account for you. Your landlord will then receive the payment within 2 7 business days. However, do be aware that these services usually come with a fee.
Here are a few services in Canada that you can use to pay your rent with your credit card.
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Is Paying Rent With A Credit Card Worth It
The value of being able to pay rent with a credit card ultimately depends on your goals and circumstances. While it could be a convenient way to earn more points through your credit card, you could end up paying hundreds of extra dollars in fees each year.
So before you sign up for any of these rental payment services, check the costs involved, work out how many points you could earn and then decide if paying rent with your credit card is worth it for you.
Want to earn points for your everyday spending? Compare rewards credit cards that offer points per $1 and introductory bonus point offers. Want to know what your rights are as a renter? Find out what your landlord can and can’t do.
Ways To Pay Rent With A Credit Card In 2021
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Can you pay rent with a credit card? More importantly, is it a good idea?
Relax. Weve got you covered.
Although paying rent with a credit card isnt a great move for everybody, in some situations, it actually does make sense. This is especially true if you want to take advantage of credit card rewards and earn a sign up bonus.
With that said, there are some major financial pitfalls to avoid if youre even thinking about doing this. Before we look at those, however, lets discuss several ways to pay rent with a credit card.
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How To Earn Rewards By Paying Your Rent With A Credit Card
- Date : 14/10/2021
- Read: 6 mins
Yes, you heard that right! You can earn money by simply paying your rent or deposit with a credit card. This article will walk you through the process and list some of the platforms that you can use.
Plastic money can be a boon or a bane, depending on how you choose to use it. When used recklessly, credit card spending can mess up your finances. However, its judicious use can make the payment process seamless and offer several credit card benefits.
You can use credit cards to make sizeable payments, such as rent, fees, maintenance, and many more to earn exciting offers and rewards. In India, people typically prefer to pay rent through cash, online transfer, or cheque. But it is now becoming increasingly common for people to pay rent with credit cards.
In this article, we will look at the benefits of credit card in India, how to pay rent through credit card, and everything else you need to know about credit cards and rent payment.
Why You Have To Pay A Convenience Fee For Credit Card Rent Payment
Service providers usually charge a small amount for facilitating your rent payment through credit card. Since you are using your credit line and not cash, to transfer the amount to your landlord, there is a different banking process which has to be initiated. Moreover, these charges act as a revenue for the service providers, for the maintenance of their payment gateway, the security of your data and to ensure minimum transaction failure rate.
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When You Should And Shouldnt Pay A Mortgage With A Credit Card
If youre able to use your credit card to pay your mortgage, you might pay a processing fee of up to 3%. Such high fees could erase any rewards youll earn from points, miles or cashback.
Consider paying a mortgage with your credit card if
- Itll help you reach a minimum spend requirement for a sign-up bonus.Sign-up bonuses typically require spending a few thousand dollars. You can reach yours more easily by paying your mortgage with your credit card. Just make sure that processing fees dont erase what youd gain from your bonus.
- You can defer your mortgage payment. You can take advantage of your credit cards grace period, which is the time during which your balance wont accrue any interest. Instead, you can use the funds for something else before your card bill is due and take advantage of an interest-free period.
Avoid paying a mortgage with your credit card if
- Youre having trouble making your mortgage payments. Putting mortgage payments on your card can lead to a mountain of debt due to snowballing interest. If youre in financial difficulty, your mortgage provider may be willing to work with you to avoid foreclosure.
- You just want a convenient payment option. Instead of paying a processing fee to use your credit card, pay your mortgage for free through your bank account. Many mortgage providers even offer autopay.
Which credit card is the best for rewards?