Paying Rent with Credit card: There are many facilities for paying rent with credit card. Savings can also be made with this. However, before making rent payment with credit card, it is important to see what are its advantages and what are the possible disadvantages? We are going to tell you the details about paying rent with credit card.  

How to pay rent through credit card

First of all, choose a reliable platform for this. Usually, rent payment by credit card is done through a third party platform, which acts as a bridge between the tenant and the landlord.

After choosing the platform, provide your landlord's name, bank account details and other information. Now pay the rent through credit card. In return, the rent payment platform charges some extra money from your credit card as a fee. Usually it is between 1.5% to 3% of the rent amount. After this, the money is transferred directly to the landlord's account. 

There are many benefits of paying rent with a credit card

Both the landlord and the tenant get information about the completion of the transaction. There are many benefits of paying rent through credit card, such as getting cashback or points. If the rent is high, then the amount received as reward is also high. For example, if the rent is Rs 25,000, then at the rate of 2 percent cashback, you get Rs 500 per month.

Apart from this, if the credit card amount has to be paid without interest, then a fixed time period is also given for this. During this time, if you repay the loan taken from the credit card, then no interest is charged. If you pay the rent on time every time through the credit card and also repay the loan, then this improves your credit score. 

If paying rent through cash or UPI transfer or cheque is a hassle, a credit card makes the process easier. You can also opt for automatic payment so that even if you forget, the rent gets paid on time. Another advantage of paying rent through a credit card is that it saves you from the hassle of raising cash.

take care of this

However, you must keep in mind that if you accidentally delay paying the loan taken from the credit card to pay the rent, you may have to pay higher interest, which is usually 30 to 42 percent per annum. 

Along with this, while choosing a platform for rent payment, keep in mind how much charge is levied on which platform, which platform gives good rewards. After making payment through credit card, always keep track of it, otherwise your credit score can go negative.