Credit Card Rent Payment—A Smart Move Or Not?

[nikhilchauhan]

Best Credit Cards To Pay Rent in 2025
Nowadays, as the digital payment methods advance, renting an apartment without cash is slowly becoming a thing. Paying rent by credit card has come into vogue while UPI and net banking are still doing their bit. The big question remains—will it be a wise idea or else a risky one?

We shall go in-depth discussing everything about credit card rent payment process, fees, pros and cons, which are the best credit cards to pay rent in 2025, and lastly, how to ward off the hidden tricks.

Can You Really Pay Rent with Credit Card in India?​

Yes, but with a small twist. Most landlords won't directly bill you on a credit card. However, there are some websites, CRED, Paytm, NoBroker, and RedGiraffe, that work as intermediaries. You pay them using your card, and they transfer the amount to your landlord's bank account by NEFT or IMPS.

These platforms are secure and compliant with RBI, thus making the whole process legal and transparent.

Advantages of Paying Rent via Credit Card​

1. Interest-Free Term: Your card will give you 20 to 50 days of an interest-free term, depending on the billing cycle. It's somewhat like a short-term zero-cost loan.
   
   
2. Rewarding Points and Cashbacks: Almost all credit cards provide some manner of rewards. If your rent payment amounts to ₹20,000/month, that's a whopping ₹2.4 lakhs/year that can earn you substantial points or cash back.
   
   
3. Improved Credit History: Rent payments made through a card and bill payments duly made increase your credit history and score.
   
   
4. Tracking Budget: Your monthly rent payment automatically gets recorded on your statement for easier expense tracking.

Understand Charges That May Be Applied​

Study these charges before paying rent with a credit card:

• Convenience fee: Typically 1.5%–2%
• GST on fee: 18%
• Late fee: Will be charged if you do not pay your credit card bill on time

An example would be: Paying ₹20,000 with a 2% convenience fee = [₹400 + ₹72 GST] = ₹472 total extra cost

Only charge your rent on your credit card if it earns enough rewards or cash back to reflect the fee.

Step-By-Step Procedure to Pay Rent with Credit Card​

Using CRED Rent Payment​

1. Open CRED app
2. Select "RentPay"
3. Enter landlord's account and IFSC
4. Add your credit card
5. Pay and confirm

Using Paytm​

1. Go to Paytm app
2. Tap Rent Payment
3. Enter details
4. Pay via card

Using NoBroker​

1. Sign up
2. Select Pay Rent
3. Enter landlord info
4. Pay using card

Other platforms like Housing.com and Magicbricks RentPay may be an option as well.

Best Credit Cards to Pay Rent in India (2025)​

We have selected suitable credit cards based on cashback, annual fee, and functionality for rent payment.

HDFC Millennia Credit Card​

• Reward: 5% cashback on PayZapp, SmartBuy
• Fee: ₹1000 (waived on ₹1L spend)
• Why it's great: Best for rent payments through partnered platforms

Example: ₹15,000 rent/month = ₹180 cashback for the year (at minimum)

SBI SimplyCLICK Credit Card​

• Reward: 1.25% cashback on online spends
• Fee: ₹499 (waived on ₹1L spend)
• Why it's great: Minimal fee, easy to use

Example: ₹20,000 * 12 = ₹2.4L/year = ₹3,000+ in rewards.

Axis Bank Ace Credit Card​

• Reward: 2% flat cashback
• Fee: ₹499
• Why it's great: Works well with Google Pay for rent

Example: ₹20,000/month rent = ₹4,800 cashback/year.

ICICI Amazon Pay Credit Card​

• Reward: 1% cashback as Amazon balance
• Fee: Free for life
• Why it's great: No cost, steady rewards

Example: For ₹15,000 rent = ₹1800 Amazon cashback annually.

AU Zenith Credit Card​

• Reward: 1.25% on all spends
• Fee: ₹7,999
• Why it's great: Premium rewards for high rent

Example: For ₹30,000 rent = ₹4,500+ value annually

Instances When You Should Avoid Paying Rent by Credit Card​

Even if you find some allure in paying for rent with a credit card, some scenarios warrant putting the idea aside:

• If your card is offering no cashback or reward.
• If you're unable to repay the entire bill.
• If the fees overpower the rewards.

If all of these are true, do yourself a favor and just go for the UPI or net banking option so that you don't mess around with credit.

Pro Tips for Smart Rental Payments​

1. Use platforms with lower fees like CRED or RedGiraffe
2. Always pay your credit bill in full to take advantage of the interest-free period
3. Use cashback-giving cards instead of point-giving cards
4. Don't pay rent on credit if you're in any other debt
5. Utilize rent payment to achieve spending milestones (e.g. free movie vouchers, annual fee waivers).

FAQs​

Q1: Is it secure using a credit card for a rent payment?
Yes. CRED Rent Payment is encrypted and regulated by the RBI

Q2: Can I transfer rent to family members?
Yes, provided you have a legitimate rent agreement and comply with taxation rules

Q3: Will this help in improving my CIBIL score?
Absolutely; if dues are paid on time, it fortifies your credit history

Concluding Thoughts​

A credit card is a good tool to pay less rent only if used efficiently. Interest-free days, building good credit history, and meaningful reward earnings are all there. Watch out for the fees and charges that could be added.

To maximize reward benefits, pay rent using any of the best credit cards such as HDFC Millennia, SBI SimplyCLICK, or Axis Ace, and make sure to repay the card by the end of every month.

Right utilization of the rent can get you cashback, rewards, and peace of mind!