Rent Payments With Your Credit Card

A large section of people in India live in rented homes, and monthly rent forms one of the biggest expenses in their budget. Earlier, rent payments were mostly made in cash or through bank transfers such as NEFT or IMPS. Many landlords were hesitant to share bank details, which made digital payments difficult.

However, after the pandemic, digital and paperless transactions became more common. Today, tenants can pay their house rent using credit cards, mobile wallets, and even UPI with the help of third-party rent payment platforms.

That said, using a credit card for rent is not always ideal. Banks charge processing fees, interest can be high if bills are unpaid, and reward benefits are shrinking. In this article, we cover everything you need to know about paying rent with a credit card, including the process, charges, best platforms, recent RBI updates, pros, cons, and key precautions.

Credit Card Rent Payments Explained

Rent payments through credit cards are usually processed via third-party platforms. Since landlords are not registered merchants and do not have card-swiping machines or payment gateways, these platforms act as intermediaries.

You enter your landlord’s bank details, pay using your credit card, and the platform transfers the amount to the landlord’s account after deducting applicable fees.

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Latest Offers on Rent Payments

Some rent payment platforms occasionally provide cashback or rewards to attract users.

NoBroker
Offers cashback on rent payments along with additional discounts on popular brands.

RedGiraffe
Provides reward points on rent transactions, which can be redeemed later, subject to a maximum cap.

Housing dot com
Offers cashback on convenience fees for first-time rent payments.

Offers keep changing frequently, and availability depends on the platform and payment method.

Latest News on Credit Card Rent Payments

RBI Update on Rent Payments

In September 2025, the Reserve Bank of India issued updated rules that stopped payment apps from processing rent payments via credit cards. Since landlords are not registered merchants, payment aggregators are no longer allowed to route such transactions.

As a result, users who were paying rent through credit cards for reward points or milestone benefits now need to shift to bank transfers or UPI in most cases.

SBI Credit Card Update

SBI Credit Cards stopped awarding reward points on rent payments from April 2024. This rule was later extended to co-branded SBI cards as well. Rent payments no longer earn rewards on any SBI credit card.

Bank Charges on Rent Payments via Credit Cards

Most banks levy a processing fee on rent payments made through credit cards. In addition, very few cards now offer rewards on rent transactions.

Processing charges generally range between one percent and five percent, depending on the bank and card type. Some banks also apply a minimum fee per transaction.

How to Pay Rent Using a Credit Card

Paying rent through a credit card is simple if allowed by the platform. The basic process remains similar across most apps.

• Download a rent payment app and complete registration
• Add your landlord’s bank details and personal information
• Enter rent amount and property details
• Choose credit card as the payment method
• Complete the transaction
• Optionally set up auto-pay instructions

The amount is transferred to the landlord’s bank account after processing.

Best Rent Payment Platforms in India

RedGiraffe

RedGiraffe is one of the earliest platforms dedicated to rent payments. It supports multiple banks and offers relatively lower processing fees. Rent agreement upload may be required for higher rent amounts.

Housing dot com

Housing dot com offers a simple and quick rent payment experience. The app does not require extensive documentation, and payments are usually settled within a short time.

NoBroker

NoBroker allows users to pay rent and society maintenance using credit cards. It supports major card networks and occasionally provides cashback offers.

Rent Processing Fees Charged by Platforms

Different platforms charge different convenience or processing fees. These charges are over and above bank fees and GST, making rent payments expensive when done regularly through credit cards.

Things to Consider Before Paying Rent With a Credit Card

Impact on Credit Score

Rent amounts are usually high. Paying rent using a credit card increases credit utilisation, which can negatively impact your credit score if it exceeds recommended limits.

Processing Fees

Both banks and third-party platforms charge fees. On large rent amounts, these fees can significantly increase your overall expense.

Interest Risk

Credit cards carry high interest rates. Missing due dates can quickly lead to mounting interest and long-term debt.

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Advantages of Paying Rent via Credit Card

Reward Points and Benefits

Some cards still offer limited rewards or milestone benefits on rent payments, which can be useful for fee waivers or vouchers.

Convenience

Rent payments can be made online without visiting banks or handling cash. Auto-pay options ensure timely payments.

Cash Flow Management

If salary credit dates do not align with rent due dates, credit cards help bridge short-term cash gaps.

Credit History Improvement

Timely repayment of rent payments through credit cards can help build a positive credit history when managed responsibly.

Disadvantages of Paying Rent via Credit Card

High Credit Utilisation

Large rent payments can push utilisation above safe levels, negatively affecting credit scores.

Higher Monthly Bills

Rent adds significantly to your card bill, making repayment difficult for some users.

Risk of Missed Payments

Transaction failures or credit limit issues can result in missed rent payments.

High Interest and Fees

Late payments attract high interest, and repeated processing fees make rent payments costly over time.

Conclusion

Paying rent with a credit card can be useful in specific situations, such as managing cash flow or achieving spending milestones. However, it comes with high fees, interest risks, and shrinking reward benefits.

With RBI tightening rules and banks discouraging rent payments via credit cards, this option is no longer as attractive as it once was. If you choose to pay rent using a credit card, ensure you can repay the full amount on time and understand all associated charges.

For most users, UPI or direct bank transfers remain safer and more cost-effective options.