Rent paid in cash is still considered the best method to pay rent. As per the global report observation in India, cash continued to be the primary payment method for point of sale and purchases. However, in the last three years, the payment method is chaining rapidly. We Indians have started to use Credit Card and Debit cards for online/Digital payment.
As per the study, we Indian spends at least 20 to25 % of Income as Rent payment. If you do not pay rent through credit card, you are missing significant benefits like reward and other perks on a credit card.
Through this article , I will explain why you need to pay rent through credit card over other methods like Cash, Net-banking, NEFT/RTGS and select the best app for rent payment.
Table of Contents
- Why you need to pay rent through credit card
- Housing.com Pay Rent
- CRED Rent Pay
- Paytm Rent Pay
- Phone Pay App
- How to pay rent with credit card without fees in India
- Should you pay rent using credit card?
Why you need to pay rent through credit card
If you pay rent using a credit card, then you can get many benefits along with rewards. Here are some of them.
There is extra cash in your bank that can be used as any contingency if you are going through a financial crunch. Let us assume, Your credit card period starts 5th of every month, and you pay rent on the 7th every month, then you have extra 42 days for cash management. On top of it, you will also earn additional interest on your bank balance, which will add a positive balance to your cash flow management.
Income Tax Exemption
If you pay rent with a credit card in any app, you will get rent receipts in your registered email ID. These receipts can be used as proof to claim Income tax benefits( Claim HRA). You do not need to call your landlord every year for rent receipts.
You get many types of Credit rewards for rent payment using a credit card. These rewards can be divided into these types.
- Regular rewards
- Milestone rewards
- Targeted spend based reward
- Annual Fee Waiver
- Rent payment offer
Here is the list of 7 Best pay rent app
|App||Charges||Document Required?||Card Acceptance|
|RedGirraffe||0.39%+GST||Yes ,if Rent>20K||All, except Amex|
|Housing||1%||No||All, except Diners & Amex|
|Paytm Rent Pay||1%||No||All|
|Phone Pay App||2%||No||All|
Redgirrafe is the best and first rent services provider in India. Why Best? Because Redgirraffe is the dedicated rent processing portal/App in India and has meager processing fees charges. The rent payment processing charges are only 0.39%+GST below half of what other rent processing app charges.
The downside is poor user experience. If you want to pay Rent with Redgirraffe, you need to first register with them. After that, you need to integrate Rent payment ID with the Bank for processing of Rent. Rent payment processing period is also northside ( 3-4 days).
NoBroker is a Bangalore-based real estate search app that also offers a rent payment solution. The Rent payment features are different from Redgirrafe, and you do register and Integrate the Rent ID with Bank.
The processing fees are meager (1%) next to Redgirrafe. Rent is transferred within 1-2 days ( In my case, rent is transferred within hours from this app)
No-broker payments are treated as Utility payments, so you may face some difficulty getting rewards points on some credit card issuers.
3. Housing.com Pay Rent
Housing.com rent payment interface as good as NoBroker. However, they have changed Payment charges many times during the year. They started processing charges with 2% but are now reduced to only 1% as No-broker.
You may consider paying rent through a credit card with Housing.com because rent processing charges are only 1-1.3% and also rent transferred within 1-2 days in the landlord account.
4. CRED Rent Pay
CRED Rent Pay has a sleek interface and has more payment options compared with other apps. You can pay rent your rent through a credit card in a simple 3-step.(1). Just enter the Rent amount (2). Enter landlord details and their beneficiary address ( Bank Details, UPI). (3). Pay through a credit card, and rent is instantly transferred to the landlord’s account.
The only downside of this app is that it charges 1.5%+GST, which is high compared to Industry.
Magicbricks had launched the Pay Rent Options the last year. It has just 1% processing fees like No-Broker, which has similar options. Magicbricks was the latest Real Estate app to launch a Rent processing solution.
The processing charges are only 1%. However, they charge additional charges as GST on processing charges.
The processing charge is higher compared to No-broker and Housing.com
You can read Full review here: Pay-rent-by-credit-card-with-magicbricks
6. Paytm Rent Pay
In June 2021, Paytm expanded its ‘rent payment’ service, including shop rentals, property deposits, token amount, brokerage, and other related services. The payment process is straightforward. You just need to give landlord details, Select payment method, and in the last payment is transferred instantly.
The processing charges is also very low that is 1% of Rent payment.
7. Phone Pay App
The latest entrant in the Rent payment market is the Phone Pay App. Their payment processing is higher compared to other apps.
The processing charge is 2%. The interface is excellent, and you can instantly transfer the rent to the landlord’s account.
The processing charges is very high.
How to pay rent with credit card without fees in India
The direct answer is no. No app provides rent payment options without fees. And however, if you combine the pay rent app and credit card benefits, the processing charges will be nil(zero), or your benefits may exceed demands.
Here is my strategy for rent payment.
I use no-broker for rent payment along with PayZapp App. There is always an offer for rent payment in the No-broker app with Payzapp. Here are the charges and benefits that I got for rent payment.
|No-Broker Charges (1%)||(Rs.350)|
|Pay-zapp offer cashback|
(Rs.500 or Rs.350)
|Citi Bank Paytm First Card cashback||Rs.350|
This combination also be used with SBI Prime or other premium credit card. That will you give more regards than calculated above.
Should you pay rent using credit card?
It would depends on which credit card you use for rent payment and your credit behavior.
Which credit card you use ?
Most of the premium and super-premium credit cards give more rewards than Rent processing charges. If you combine Milestone benefits, Bonus, and Fees waiver of credit card then, benefits multiply. If your premium credit card, then you should use it.
You can also use Basic level credit card along with Pay-Zapp for maximum benefits.
Your Credit behavior ?
Suppose you pay your rent using your credit card. You do not have sufficient balance in banks to pay your credit card dues on time. In that case, you have to bear heavy interest charges and would adversely affect your credit score. Pay rent using a credit card is when you have sufficient balance in banks.
I have listed all the Best 7 Apps to pay rent with a credit card in India. However, I use a Combination of No-Broker and Pay-Zapp for Rent payment.
While, Redgirraffe remains the #1 for Rent payment if your first priority is saving processing fees.
So which app are you using to pay rent through credit card? Feel free to share your thoughts in the comments below.