Is it ok to withdraw money from CC to bank using Rent Payment

[shivamid6]

I want CC money to Bank so I'm doing a rent payment to my family member acc. usning my CC.

Rs. 5000 : Rent payment
Rs. 94 : App Fee
Rs. 50.94 : 1% CC charges
Rs. 9.1 : 18% GST

Rs. 5094 + 60.04 =5,154.04 : TOTAL DEDUCTION
Rs. 5,000 : RENT RECEIVED

250 Rs. : Cashback using that app for Rent Payment

250 - 154.04
= 95.96 : Cashback received on 5k Rent Payment

Getting 95.96 Rs. cashback on 5k rent payment should I go with this transaction?

 

[SukhpalHundal]

Not a wise idea, there are drawbacks associated with paying rent through credit card. Here are some key factors you need to take into account:

1. Credit cards are typically exposed to high interest rates. Not paying your balance in full each month will accumulate hefty interest charges on your rent and outweigh any benefits you may receive such as cash back.
2. Fees: Some landlords or payment processors may charge a fee for using a credit card to pay rent. These fees can offset any rewards you receive and make renting more expensive.
3. Debt Trap: Rent is often a significant expense. While putting it on a credit card may be tempting, you risk falling into a debt cycle if you don't have enough money to cover it next month.
4. Cibil Impact: While using your credit cards and paying on time can help your credit score improve, carrying a large balance can harm it. Remember that rent payments typically account for a significant portion of your credit card's limit.

Alternatives To Consider:

• Direct Bank Transfer: This is frequently the cheapest and most straightforward option.
• Online Payment Platforms: Many platforms provide rent payment options at lower fees than credit cards.
• Debit Card: If your landlord allows it, you can avoid credit card interest and fees by using a debit card.

Consider paying rent with a credit card only if:

• You can pay your balance in full each month.
• The benefits outweigh the fees associated with using a credit card.
• You have a good credit score and a solid budget to use your credit cards responsibly.

 

[Somebody]

I want CC money to Bank so I'm doing a rent payment to my family member acc. usning my CC.

Rs. 5000 : Rent payment
Rs. 94 : App Fee
Rs. 50.94 : 1% CC charges
Rs. 9.1 : 18% GST

Rs. 5094 + 60.04 =5,154.04 : TOTAL DEDUCTION
Rs. 5,000 : RENT RECEIVED

250 Rs. : Cashback using that app for Rent Payment

250 - 154.04
= 95.96 : Cashback received on 5k Rent Payment

Getting 95.96 Rs. cashback on 5k rent payment should I go with this transaction?

@shivamid6 which app do you use to pay rent?

 

[zacobite]

I want CC money to Bank so I'm doing a rent payment to my family member acc. usning my CC.

Rs. 5000 : Rent payment
Rs. 94 : App Fee
Rs. 50.94 : 1% CC charges
Rs. 9.1 : 18% GST

Rs. 5094 + 60.04 =5,154.04 : TOTAL DEDUCTION
Rs. 5,000 : RENT RECEIVED

250 Rs. : Cashback using that app for Rent Payment

250 - 154.04
= 95.96 : Cashback received on 5k Rent Payment

Getting 95.96 Rs. cashback on 5k rent payment should I go with this transaction?

u can if u are able to pay back on time in full.. however it is a LOT OF EFFORT AND TIME for 96 rs...banks may question if found suspicious