Making payment through a credit card is probably the most preferred and convenient option. Payments of expenses like getting lifestyle goods, dining out bills, or even booking tickets for a vacation, every payment is possible through credit cards. Making the shopping experience better they have also proven to be a great substitute for transactions through cash. Credit cards are not only proven as a beneficial tool to cover emergency expenses, but they are also helpful in improving your credit score. If you also use your credit card to earn various bonuses and rewards on your transaction, Pay rent through a credit card can be a quick alternative to earn more and more benefits on your card. Pay rent online using a credit card is probably more satisfactory than writing out a check each month.
Working of paying the rent with credit card
Step 1: To pay rent using mobile app, the tenant installs the rental payment application and adds the information of self and the landlord
Step 2: Then the tenant pays the rent using a credit card on the preferred app, rather than directly transferring the whole amount into the landlord’s account.
Step 3: The Pay rent app will make the payments into the landlord’s account in the duration of a few hours to a few days.
Step 4: Finally, the app gets the money after some time from the bank issuing tenant’s card.
With these simple steps, the rent will be credited into the landlord’s account.
Some Advantages Of Paying Your Rent via Credit Card
Below are some benefits of easy rent payment with a credit card:
- Gives a Boost to Your Credit Score: Having unused credit on your card may affect your credit score as the under-utilization of your credit line will impact your score. When you use your credit card frequently for large transactions, you earn benefits on cards and also keep your credit score high. If you are struggling to manage your credit score this is the best option for you.
- Stress-free timely payments: When the salary gets credited after the rent due date, tenants usually find it hard to manage the funds to make timely transactions. With the feature of paying rent via credit card, you can utilize your card to make convenient payments to your landlord and repay the bill on time, as well, using your salary.
- Earn reward Points: You must be conscious of the rewards and discounts that your credit card provider gives. You can get many bonuses and rewards on each rent payment you make with a credit card. The reward points earned can be redeemed later for various discounts.
- Enjoy Interest-Free Repayment of Credit Card Bill: You get an interest-free period of almost 45 days to pay your credit card bills. When you pay the rent with a credit card, you enjoy the Interest-Free Repayment option.
Important Factors to consider before Paying Rent using a Credit Card
Rent is one of the major parts of our repeated expenses. Anyone can pay rent using a credit card but needs to take care of certain factors before making the payment. Below are some factors that you must be taken care of:
- Impacting your CIBIL Score: With every rent payment you make, your credit utilization increases, which impacts your CIBIL score. Being an important factor in determining a score, it must be maintained below or equal to 30%. As the credit utilization is lower, your credit score might increase.
- Interest: In case of default repayment of your credit card bill in full on time, then the interest rate will be charged on the outstanding balance. Also, the interest levied will stack up over and over. Both the interest charged and processing fee will be a massive amount for you to pay.
- Processing Fee: A minimal processing fee will be charged by the pay rent app if you make a rental payment with a credit card. This processing fee may vary between 2% and 4%.
Hence, it is important to consider these factors before you pay rent via credit card. Making timely credit card bill payments will improve your credit score. Also, you might be charged with high-interest rates if the credit card bill is not fully repaid.
To conclude it all, choosing to pay your monthly rent using your credit card or not is a personal choice. Still, if you pay rent online make sure you get the most benefit out of it. Also, make a smart choice and remember not to hamper your credit score.
Pay Rent using the PayMe India app
PayMe India has come up with a platform to pay rent through your credit card, it allows you to pay the house rent, office rent, security deposit, etc through Credit Card. You get to earn handsome cash-backs and reward points.
To pay rent online, click the link.