Is this wise to use credit card for rental payment? Key points explained
What if you want to earn some rewards while making the payment of rent? And when you repay the credit card bill well in time, it allows you to make use of a 45-day interest free period. However, there could be additional charges as well.
So, if you are also contemplating paying rent with a credit card, keep in mind these five points.
I. Charges: Most card issuers allow rent to be paid through credit card by levy of a service charge which could range between 1 to 2.5 percent. This means if you are paying a rent of ₹ 50,000, there could be an additional cost in the range of ₹ 500 to ₹ 1,250.
II. Quasi cash: Some card issuers consider rental payment as a quasi cash transaction, thus rendering it ineligible for reward points. So, it is recommended to check the terms and conditions of the card-issuing bank.
III. Raising your credit utilisation: Payment of rent through card leads to higher credit utilisation, thus impacting your credit score for the time being. Therefore, if you have several other expenses lined up during a month, it may be better to refrain from using a credit card for making payment of rent.
IV. Rent receipts: Platforms that you are using to make the payment of rent could also provide the receipts that could be used for claiming HRA exemption. However, the convenience fee levied on it is not reflected in the rent for obvious reasons.
V. Flexibility: All in all, using a credit card may be a good option to pay rent with flexibility of 45-day interest free period and cash rewards or cashback (based on the card you use). However, if you do not stand to get any of those, you may want to reconsider it for payment of rent.
Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
For all personal finance updates, visit here
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
5 hours ago
- Mint
India to defend interest, pursue US talks in parallel
India has vowed to defend its national interest after the US imposed stiff tariffs on its goods, even as it works to conclude a trade deal that's in the best interests of both. On Thursday, economists counted the cost of tariffs on India's exports and growth, even as the stock market took the news in its stride. "The government attaches utmost importance to protecting and promoting the welfare of our farmers, workers, entrepreneurs, exporters, MSMEs and all sections of industry. We will take all necessary steps to secure and advance our national interest," commerce minister Piyush Goyal said in the parliament. The government is examining the implications of these tariffs and is engaged with all stakeholders, he said. Meanwhile, US President Donald Trump ratcheted up his rhetoric, a day after he announced a 25% tariff plus a penalty on Indian goods from 1 August. India and Russia "can take their dead economies down together", Trump commented, expressing displeasure over the continued trade and defence links between the two countries. Trump's announcement came ahead of a US trade team visiting India from 25 August. Despite the sour remarks, India will keep its focus on discussions with the US for a bilateral trade agreement (BTA) with a mutually beneficial outcome, said two people who are directly involved in the process. New Delhi has chosen not to retaliate, Mint reported on Wednesday. On Thursday, India's Nifty 50 index closed at 24,768.35, down 86.70 points or 0.35%, amid volatility triggered by US tariff concerns. Preliminary analysis suggests India could face a loss of nearly $10 billion in export value to the US if the tariffs stay for long, the first of the two people said, requesting anonymity. The loss would be a significant setback, with labour-intensive sectors such as textiles, footwear, gems and jewellery, and electronics likely to be hit the hardest. The US is not only India's largest trading partner but also one of the few major economies with which India enjoys a significant trade surplus. India's goods trade surplus with the US rose to $41.18 billion in fiscal year 2025 (FY25), up 16.6% from $35.33 billion a year ago. The increase was driven by an 11.6% rise in exports to $86.51 billion, while imports from the US grew 7.4% to $45.33 billion. In comparison, India's overall goods trade reported a deficit of $282.8 billion in FY25. According to government estimates, about 75.3% of India's merchandise exports to the US could be impacted by the proposed tariffs. 'There will be no change in priorities and strategies, which will remain the same as during the last five rounds of face-to-face talks that began in March following the joint statement issued by the leadership of both nations on 13 February,' said the second person mentioned above. Analysts agree that the tariffs will negatively impact India's GDP growth, with Goldman Sachs Economic Research projecting a potential direct hit of 0.2-0.3 percentage points on its CY25 real GDP growth estimate. While acknowledging the potential for a short-term hit, analysts like V.K. Vijayakumar from Geojit Investments and Aditi Raman from Moody's Analytics said that trade talks might lead to a lower final tariff rate and that India's domestically-driven economy offers some resilience against significant long-term impact. Madhavi Arora, chief economist at Emkay Global Financial Services, said the tariff would significantly raise the effective US duty on Indian goods from an average of 10.7% to about 22%, after factoring in higher duties on exempted sectors such as copper, steel and aluminium. This rate, she added, is already higher than what most Asian economies face, barring China. India exported goods worth $87 billion to the US in FY25, accounting for 2.3% of GDP, said Arora. Of this, engineering goods, electronics, drugs and pharmaceuticals, gems and jewellery, and textiles made up $65 billion. Meanwhile, India should continue to focus on manufacturing for the world, but with a more diversified 'US-plus' export market, even as the US tariff and penalty for trade with Russia have bared vulnerabilities, said experts. 'The latest set of tariff announcements has indeed exposed vulnerabilities in export-dependent growth models, necessitating a strategic recalibration of India's manufacturing framework,' said Rishi Shah, partner and economic advisory services leader, Grant Thornton Bharat. 'Our 'Make in India' initiative's emphasis on scaling production capacity remains fundamentally sound, but the current trade environment underscores the need for a more nuanced approach centred on innovation-led industrial development.' India must now elevate industrial security to the 'same strategic priority we've accorded food security and energy security over the past decades', said Shah. On the issue of penalties for buying Russian oil, the second person said that it is not yet clear, as it remains to be seen in what form they might be imposed. To be sure, Trump had pressed India to change its stance and allow greater access to American goods in the Indian market. Mint was the first to report on 11 June that US has changed its stance and was firm on the demand to open critical sectors like agriculture, dairy and access to US's GM seeds and agricultural products as well as digital trade. Negotiations for a bilateral trade agreement (BTA) began in March 2025 and have since progressed through five rounds of physical meetings and multiple virtual sessions. The Terms of Reference for the agreement were finalized on 29 March during the first round in New Delhi, Goyal told Parliament. The government is currently examining the implications of the steep tariffs and is actively consulting with exporters and industry stakeholders to assess the impact, he said. The revised tariff is expected to impact agricultural exports to the US significantly. 'This sudden hike could seriously dent profitability and slow down export momentum for products like basmati rice, pulses, grapes, and makhana,' said Anil Kumar SG, founder of Samunnati, an agri value chain solutions provider. However, Apparel Export Promotion Council chairman Sudhir Sekhri believes that the 25% tariff is not a major cause for concern as long as tariffs on competing countries like Vietnam and Bangladesh are not revised downward from current levels. 'Apparel exports are expected to slow down until the announcement of an interim BTA, which we hope will be concluded between October and December 2025. The penalty remains a grey area, and we expect the government to negotiate this with the US,' Sekhri said. The US remains a key market for Indian ready-made garments, accounting for 33% of India's total garment exports in 2024. India's total merchandise exports, excluding petroleum, reached a record $374.1 billion in FY25, up 6% from $352.9 billion a year earlier.
Mint
13 hours ago
- Mint
Upcoming IPO: Excelsoft Technologies gets SEBI nod to raise ₹700 crore through the public issue
Upcoming IPO: Global vertical SaaS firm Excelsoft Technologies Ltd. received the go-ahead from the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO). The company submitted its preliminary draft papers on 28 February 2025. The Karnataka-based Excelsoft Technologies was incorporated in 2000 as a global vertical SaaS company. Since then, it has been providing technology-based solutions across diverse learning and assessment segments through its cloud-based platforms, according to company data. The company has 71 clients, which are spread across 17 countries, including the US, UK, India, Singapore, Australia, Japan, Malaysia, Saudi Arabia, UAE and Canada. Pearson Education, Inc., AQA Education, Colleges of Excellence, NxGen Asia PTE LTD., Pearson Professional Assessments Limited, Sedtech for Technology Education & Learning WLL, and Ascend Learning LLC, are some of the top clients for the company. Excelsoft Technologies is offering a book-built public issue comprising a fresh issue of up to ₹ 210 crore, and an offer for sale (OFS) component of up to ₹ 490 crore, as the company aims to raise ₹ 700 crore from the Indian stock market, according to the draft papers. Mint reported earlier that the company promoters, Pedanta Technologies Private Limited and Dhananjaya Sudhanva, are selling their stake in the company through the IPO round. The company aims to use the money raised from the public issue to fund capital expenditures, including the purchase of land, the construction of a new building, and the upgrading of the external electrical systems of its Mysore facility. The company will also fund the upgrade of the IT Infrastructure, and the rest will be used for general corporate purposes. Anand Rathi Advisors Limited is the book-running lead manager of the public issue, while MUFG Intime India Private Limited (Link Intime) is the registrar of the offer. Read all stories by Anubhav Mukherjee Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
18 hours ago
- Mint
Join Mint webinar on 'Power, Trade & the Global Order' to decode Trump tariffs
In our interconnected world, geopolitics and geoeconomics are now so immeasurably intertwined. In fact, it's geoeconomics that is driving geopolitics. Here's an example: in a 'Trumpian world' where punitive tariffs are friend-and-foe-agnostic, countries are looking at China to hedge their bets and reduce potential threats from the US. And another: de-risking, a term earlier used in the context of China, is today being increasingly used in the context of the US. Geoeconomic risks, therefore, are resulting in some creative utilitarian partnerships. With President Donald Trump now officially slapping a 25% tariff—and an added 'penalty'—on Indian goods starting 1 August, the stakes have dramatically risen. These tariffs, aimed at India's 'obnoxious' trade practices and ties with Russia, could severely impact key export sectors like textiles, auto parts, and food products. In light of this, Mint's webinar titled 'Power, Trade & the Global Order' will explore the road ahead. Can India and the US still find common ground on contentious issues like agricultural access and digital regulation? Or has Trump's move reset the clock on 25 years of strategic engagement? Arun K Singh, former Indian Ambassador to US, France & Israel Arun K Singh has served as India's ambassador to three key countries – US, France and Israel. Throughout his distinguished 37-year career in the Indian Foreign Service, Ambassador Singh has also served in other pivotal roles, most notably as the desk officer in the Ministry of External Affairs in New Delhi in charge of Pakistan, Iran and Afghanistan in the crucial period following 9/11. Post retirement, he was named Member of India's National Security Advisory Board over 2021-22. Currently, Ambassador Singh is a Senior Counsellor at The Cohen Group, a Visiting Professor at Ashoka University, and a Non-Resident Senior Fellow at Carnegie India. He holds a Masters Degree in Economics from Delhi University; his areas of specialization includes econometrics, development policy, macroeconomics and Indian economic history. He taught Economics at St. Stephen's College of University of Delhi, before joining the Indian Foreign Service in 1979. Ajay Srivastava founded the New Delhi-based think tank GTRI, which he set up after a long and distinguished career as a government official. He left government service in March 2022. GTRI focuses on climate change, technology and trade. As a long-time Indian Trade Service officer, he has experience in trade policy making, WTO and FTA negotiations. Elizabeth Roche joined the Jindal School of International Affairs after working as a journalist for almost three decades. She has worked as foreign affairs correspondent and editor across formats in a number of Indian and foreign media organizations, including Reuters TV, AFP, and Mint. At Mint, she helmed coverage of Indian foreign and defence policy for more than a decade as Editor - Foreign Affairs.
