Paying Rent with Credit Card in India

Paying rent is a regular monthly task for most people. Normally, tenants pay rent through bank transfers, UPI, or cheques. But did you know you can also pay rent using your credit card? Yes, it’s now possible to pay rent through your credit card using various apps and websites. This method is getting popular in India because of the convenience, rewards, and flexibility it offers. But, just like anything else, it also has some downsides.

In this blog, let’s look at the pros and cons of paying rent with a credit card and how you can do it step-by-step.

Benefits of Paying Rent with a Credit Card

You earn rewards and cashback: One of the biggest advantages is that you can earn credit card reward points, cashback, or even air miles when you pay rent. Since rent is usually a big expense, you collect rewards faster. These points can later be used for discounts, vouchers, or flight tickets depending on your card.
Extra time to pay your rent: Credit cards offer something called an interest-free period. That means you can pay your rent today, and the money won’t be due for another 30 to 45 days, depending on your card's billing cycle. This helps a lot when your salary is delayed or if you're low on cash during the month.
It helps build your credit score: Using your credit card regularly and paying the bill on time improves your credit score. A good credit score makes it easier to get loans or credit cards in the future with better benefits.
Everything is digital and trackable: Paying rent using a credit card through apps means all your payments are recorded. You and your landlord get confirmation receipts, and it becomes easy to track all transactions if needed for legal or tax purposes.
Helps you reach spending milestones: Many credit cards give you extra benefits if you spend a certain amount yearly—like free lounge access, gift vouchers, or even annual fee waivers. Rent payments can help you reach those spending limits more quickly.

Drawbacks You Should Know

Extra charges and fees: Most rent payment apps charge a convenience fee. It’s usually between 1% and 2.5% of the rent amount. So, if your rent is ₹20,000, you might have to pay ₹200 to ₹500 extra just in fees. This might reduce or cancel out the value of the rewards you earn.
High interest if you miss the due date: If you forget to pay your credit card bill on time, you’ll have to pay very high interest, sometimes more than 3% per month. That’s a lot, especially for a big payment like rent. So you must be very disciplined.
Some credit cards don’t offer rewards on rent: Not all credit cards give reward points on rent payments. Some cards either exclude them or offer very few points. So always make sure to read the rules before you use your card.
You can’t pay rent directly to your landlord: Landlords in India don’t usually accept credit card payments directly. You’ll need to go through a rent payment platform that collects the payment from your card and then transfers it to your landlord’s bank account.
You could fall into a debt trap: If you keep using your credit card without paying it off completely every month, you can easily fall into debt. This method is not for people who often delay bill payments or spend more than they can afford.

How to Pay Rent Using a Credit Card

Paying rent through a credit card is easy once you know the steps. Here's how you can do it:

First, choose a rent payment app. Some popular ones in India are CRED, NoBroker, RedGiraffe, Freecharge, MagicBricks, and PhonePe.
Create an account on the app or website.
Fill in the details they ask for. This usually includes:
- Your name and contact info
- Credit card details
- Landlord’s bank account number
- Rent amount
- Rent payment frequency (monthly)
- Address of the rented property
- Sometimes, a rent agreement (especially in RedGiraffe)
Once everything is set, you can make the payment using your credit card. The platform will process it and transfer the rent to your landlord’s bank account.
Both you and your landlord will receive a confirmation message or receipt once the transaction is complete.

Popular Apps You Can Use

Let’s take a quick look at the most commonly used platforms in India for paying rent through a credit card:

RedGiraffe – Charges a processing fee of just 0.39% + GST. You’ll need to upload a rent agreement. They also give some cashback as RedGiraffe CASH Points.
Freecharge – Lets you pay rent with a credit card. Their charges usually start from 0.9%.
CRED – Very popular among credit card users. They charge between 1% and 1.5% as a fee. Most credit cards including Visa, MasterCard, American Express, and Diners Club are accepted.
MagicBricks – Charges 1% up to ₹75,000 rent, and 1.5% for anything above that amount.
PhonePe – Has a rent payment option under the “Recharge & Pay Bills” section. You can pay using your credit card and enter your landlord’s account details.

These platforms keep updating their offers, so it's good to check for any monthly deals or cashback before paying.

Bottom Line

Paying rent using a credit card is a smart move if you manage your money well. You can enjoy rewards, get extra time to pay, and build a better credit history. But remember, there are also fees and risks. If you’re confident you’ll pay off your credit card bill on time every month, this method can actually benefit you. But if you often delay payments or already have credit card debt, it’s better to stick to traditional methods like UPI or bank transfer.

The key is to use this option responsibly. That way, your rent doesn’t just leave your bank account, it also gives you something back.