If you tell your father or grandfather that you are thinking of paying the rent using a credit card, they might lecture you or totally freak out. As for years, they have paid the rent either through cash or NetBanking. But the world is evolving and you need to as well!. Also, there are many online platforms that allow you to pay the rent online using a credit card at the cheapest rates. These platforms ensure that your rent-paying experience is not only simple and convenient, but you also get to enjoy a host of benefits.
While there are a number of platforms that offer the facility of paying rent using a credit card, let us first look at the benefits of paying rent online.
Why Should You Pay Rent Using a Credit Card?
Let us first understand why it is beneficial for you to pay rent using a credit card:
1. Cashback Offers: When you pay rent with credit card, several banks and eCommerce portals provide you with great cashback every time you use your credit card. The cashback you earn is directly credited into your account regularly.
2. Earn Reward Points: Unlike cash transactions, paying rent using credit cards can buy you reward points that can be redeemed to get discounts on future purchases or bookings from renowned brands. For example, Dirigible is one platform that offers reward points and exclusive offers to make rent payments using credit cards.
3. Free Credit Period: When you pay rent using a credit card, you get 45 days of the free credit period. Therefore, if you pay your credit card bill within these 45 days, you won’t have to pay any interest charges.
4. Timely Payments: Let’s assume, your rent is due on the first of every month but your salary is credited on the 5th or 6th. In such a case, you won’t have to go through the embarrassment of convincing your landlord regarding delayed payment if you pay the rent using a credit card. Also, you can pay the credit card bill with a free credit period of 45 days to avoid interest on your rent payment
5. Boost your Credit Score: If your credit score is on the lower side (below 750), you can improve it (to 750 or above) by frequently making large transactions (like rent). For those who don’t know, a credit score is taken into consideration by banks or NBFCs before deciding if an individual is eligible for a loan. However, it is advisable not to go above 30% of your credit utilization ratio as it can impact your credit score negatively.
6. Minimum Formalities: All the platforms that allow you to pay rent using credit cards ensure to make your rent payment process seamless by offering cutting-edge technology. Also, you just need to fill in your landlord’s details just ones and then you can automate the rent transaction (if your credit card issuer allows) for the rest of the year.
7. Meet the Annual Spending Limit: A lot of users who own a credit card face the issue of not meeting the annual spending limit of their credit card. However, by paying rent using a credit card every month, you will be easily able to meet your annual spending limit.
