Should you be paying rent with credit card?
Using your credit card for rent will increase your monthly card usage. If your credit limit is Rs 1 lakh, and you use Rs 50,000 for rent, you're already using half your limit.A high credit utilisation ratio can temporarily pull down your credit score. So, if you have other big purchases lined up, it may not be a great idea.YOU MAY NOT EARN REWARD POINTSNot all card issuers treat rent payments the same way. Some consider them 'quasi-cash' transactions, which means you might not get any reward points at all. Before you pay, it's wise to check your card's terms and conditions.RENT RECEIPTS CAN BE USED FOR HRA CLAIMSIf you're claiming House Rent Allowance (HRA) in your salary, you can still use platforms that provide rent receipts, even when paying via credit card.But keep in mind, the convenience fee won't be shown in the rent amount on the receipt.YOU GET FLEXIBILITY, BUT ONLY IF YOU'RE DISCIPLINEDHowever, one of the biggest advantages is that you get an interest-free period of up to 45–60 days, depending on your billing cycle. Your savings remain untouched for a while, and if your card offers cashback or points, that's a bonus. Also, automated payments mean you won't miss a due date.But here's the catch: this works only if you pay your credit card bill in full and on time. Otherwise, the interest and late payment fees can burn a hole in your pocket.WHY SOME STILL PREFER ITSome people still prefer paying rent through credit cards because of the ease and benefits it offers. With automatic deductions, there's no risk of missing a payment. It also improves cash flow, as your money stays in your bank account longer. Plus, if you pay your bills on time, it helps build a stronger credit score over time.advertisementSimply put, using a credit card for rent isn't a bad idea, if you're financially disciplined. Make sure you know the fees, understand your card's terms, and never miss the payment due date. If you're only doing it for the rewards, check whether the reward value is higher than the fees you're paying. Otherwise, it may not be worth it.As always, don't let convenience turn into a costly mistake.- Ends
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