Pay Rent Online

Rent Payment By Credit Card

House rent payments are usually the biggest expenses a tenant incurs in a month. It is imperative to make the rent payments on time, as you do not have the liberty of skipping payments. For people living from pay cheque to pay cheque, an unfortunate cash shortage in a month can end up creating an unfortunate situation.

In such situations, the rent payments can also be made using your credit card. However, it is important to know about all the advantages and disadvantages of doing so. In this blog, we will discuss all the factors associated with making rent payments by credit card to help you decide if this is the right option for you.

Let’s begin!

How to Pay Rent Online through Credit Card

Tenants can easily transfer the rent payments to the landlord’s bank account easily using their credit cards. To do so, you are required to have the landlord’s bank details like the bank account number and IFSC code. Once all of the landlord’s details have been verified, the tenant can make the rent payment.

Once the payment has been successfully completed, the landlord will receive an SMS notification stating the same. While the transfer might take upto 48 hours to be completed, the tenant can track the payment status using the link provided during the payment.

How Does it Work?

The online rent payment can be made by utilising the credit limit as provided by the bank. The amount will be debited from your available credit limit and directly be deposited into the landlord’s bank account. However, such transactions may incur a small processing fee for the credit card balance transfer which can be offset against the rewards point system and deals as provided by your bank.

Benefits of Paying Rent with Credit Card

The important thing to remember is that rent payments using credit cards should only be made by people who are facing a cash crunch during the month. This can provide substantial relief to such individuals during the beginning or end of the month. Utilising the available credit limit to make rent payments has several advantages, some of which are discussed below:

• This can come in handy in case you are trying to save some cash. Further, you will also be given a certain relief period before the interest is levied.
• Unlike when you pay rent using cash or any other method, you can get reward points for making payments through credit cards. These points can subsequently be redeemed in exchange for shopping vouchers, flight deals, movie tickets, etc.
• You can use the credit card to set the rent payments as a recurring payment each month. This way you can ensure that you do not miss any rent payments while also earning rewards for each payment.
• Making rent payments by credit card aids in improving your credit score. However, this is only applicable if all the credit card payments are being made on time on or before the due date.
• A credit card can be used to make timely rent payments. Thus, it ensures that you have increased liquidity during the beginning or end of the month.

Things to Consider before Making Rent Payment by Credit Card

Even though there are several advantages of rent payment using a credit card, it is better to be aware of all the factors associated with the same. Given below are some of the things that you should consider before you pay your rent online with a credit card:

• Credit Score Impact: Since credit utilisation is used to make the rent payments, it will have a direct effect on the credit score. If this leads to high credit utilisation, then it will negatively impact the credit score. If you have a low credit score, you may find it difficult to avail a loan or a new credit card in the future.
• Interest: There is usually a high-interest rate associated with credit card payments. If due to some reason you are not able to make the credit card payment in full, then the interest will be levied on the entire outstanding amount. In such cases, the interest levied can pile up in the long run and create further financial difficulties.
• Processing Charges: Usually, banks and financial institutions will charge a processing fee when you make rent payments with a credit card. This fee usually varies between 2% to 4%. This means that you might end up paying a higher amount while paying the rent with a credit card.

It is important to keep all these factors in mind while using your credit card. The most important thing to remember is that you should always pay the credit card due in full during the next month. If the bill is not paid in full, a higher rate of interest is charged on the remaining amount.

Why Choose Square Yards for Hassle-Free Rent Payments?

By choosing to make rent payments on squareyards.com, you can take advantage of the quick transfer feature along with a number of other benefits and offers. Further, the organised and streamlined payments process ensures that the users face no problem while making payments, and enjoy greater transparency.All these advantages are in addition to the reward points that you receive from the bank for any such utilisation of your credit limit. This means that users get more additional discounts, offers, etc as compared to any other service provider by making rent payments with a credit card on Square Yards.

Last but not the least, your security is our number one concern. Square Yards does not store any of the personal information that you provide during the payment. Additionally, you can stay assured of the fact that all your transactions are end-to-end encrypted and secure.

Moreover, users can also easily generate and obtain their house rent receipts on the platform and use them for claiming tax deductions with respect to their house rent allowance. This feature is also available while making payments using debit cards and UPI also.

All these advantages are in addition to the reward points that you receive from the bank for any such utilisation of your credit limit. This means that users get more additional discounts, offers, etc as compared to any other service provider by making rent payments with a credit card on Square Yards.

Last but not the least, your security is our number one concern. Square Yards does not store any of the personal information that you provide during the payment. Additionally, you can stay assured of the fact that all your transactions are end-to-end encrypted and secure.