Credit Card: What if you don't have money... You can pay rent through a credit card in just 5 steps. Know the process..

The trend of digital payment is growing rapidly in India. In such a situation, the option of paying rent through a credit card has also been found. If seen, this method has many advantages, such as cashback, reward points, and it becomes easy to manage cash flow. However, there are some charges, rules, and regulations associated with it, which are very important to understand.

Even though you can pay rent through a credit card, it is not as easy as paying cash, transferring money, or shopping. Let us know what you need to do if you also want to pay rent through a credit card.

1- First of all, choose a platform

Choose a rent payment platform that allows paying rent through a credit card. These platforms send reminders, make payment easy, and sometimes also give rewards. Such as PayZapp, CRED, Freecharge, Paytm, and Nobroker.

2- Complete KYC registration

Create your account on the platform you have chosen and complete the KYC process. This ensures that your information is confirmed as per the government rules.

3- Enter the landlord's details correctly
Add details like your landlord's bank account number and IFSC code. You may also have to provide your landlord's PAN number there. Check the details thoroughly before submitting, so that there is no mistake.

4- Enter the rent amount
Fill in the rent amount as per the rent agreement and click on 'Submit'. This will make your agreed amount ready for transfer to the landlord's bank account.

5- Make payment
Now, make the payment through a credit card. Keep in mind, there is a processing fee in this, which can usually be from 1% to 3% of the rent amount. Every platform has different fees. Check it once before making the final payment.

Impact on credit score
If you pay your credit card bills on time, it improves your credit score. Just make sure that you do not let your credit utilisation ratio exceed 30%.

Reward limitations
Not every credit card offers rewards on rent payments. Some cards do not offer discounts on this or offer very few benefits. So, read the terms and conditions of your card first.

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