Now Pay your House Rent with a Credit Card

By | May 5, 2017

We all love credit cards. Isn’t it? It’s a short term loan that is easily available and we can get an interest free period for the same which theoretically do help us in earning some interest on our savings. A lot of us don’t own a house and thus live on a rented property. The rent amount varies from ₹5,000 to may be ₹1,00,000 in some cases. But what if I said you can pay this rent on your credit card and thus earn points as per the earning rates of your credit cards.

Pay your House Rent with your Credit Card

Welcome to the world of RedGiraffe’s RentPay

The company RedGirraffe is one of the pioneers in the field of rental payments. It’s very easy to register on their website under the ‘RentPay‘. You need the rent agreement. Fill up the form, give the land lords account details. After that you’ll get a SMS on your registered mobile number with the RG ID and the password. That password can be changed.

They take approx 48 hours to approve your property. Once it is done, you can register the RG ID with the partner banks. Most of the big banks I know off have partnership with RedGirraffe. Some famous banks are HDFC, SBI, ICICI, KOTAK, IndusInd, Axisbank and Yes Bank. The process is fairly transparent and is easily available on RedGirraffe’s website. I have done the same through HDFC Bank through Smartpay.

What are the RedGiraffe transaction charges?

  • Rental payment less than Rs.10,000 : Rs.45 (inclusive of all ST)
  • Rental payment greater than Rs.10,000: 0.39%+ST for each transaction.

This is very nominal. And it is nothing if you compare to with you’ll get.

How will it benefit when charged on Credit Card?

Say for example you have cards like Regalia, Diners Black, Infinia, SBI Elite etc.. all these cards let you earn reward points rate more than 0.39%. Diners Black/Infinia allow 3.33% and Yes First Exclusive allows 2.5% cash back as points. You can also pick one from the list of other best credit cards in India.

So you pay 0.39% but get 3.33% for example.

On top of it, you get savings from the interest that you get due to interest free period. Plus, you can maintain a good CIBIL score too with good payment history. Since rent amounts can be hefty, hence this will help you to build up the transactions in a year beyond which you get extra perks from the credit card companies. So this way, it becomes very easy to pay the rent not by cash but by credit card and earn profits.

Give it a try. I have been using this for sometime now and I’m very happy. I don’t have to remember to pay my land lord. The payment gets debited automatically from my credit card and credited every month in his bank account. We both are happy.

Do let us know what is your take on this. Did you like the idea of paying rent through credit cards? This is legal and this will help you get reward points easily.

Author: Abhishek Roy

Abhishek is a Doctor by profession and is passionate about Technology and Photography. He pursues his hobbies during the little free time he gets and likes to make the most out of it. He has special interest in Credit/Debit Cards, Reward Points, Air Miles and Travel Hacks.

79 thoughts on “Now Pay your House Rent with a Credit Card

  1. Mahender Roa

    What kind of Rental Agreement they expect ? A proper rental agreement costs you 5k rupees.

    Reply
    1. Abhishek Roy Post author

      You can pay any amount that is as per your rental agreement. If you don’t have a rental agreement in cases like you’re living in a PG, in those cases a letter of indemnity can be given as per their (RG’s) format and then they’ll approve your listing. Hope that helps.

      Reply
  2. Neeraj Kumar

    It sounds interesting.
    Just curious – are you affiliated to RG in any way other than as a customer.

    Reply
    1. Abhishek Roy Post author

      Hahaha… no man. I don’t have any affiliations with them. Neither do I have any conflict of interest on this topic with respect to RG. I write here things which I hope will help people. This is something that I learnt about on my own after lot of research. So just thought of helping people by writing about it. Hope that’s okay for you. 🙂 If you find a better service then use that or if you’re at all interested to use this service, then only use it. Won’t gonna make any difference.

      Reply
      1. Neeraj Kumar

        Thanks for the clarification. Anyways, I don’t mind people endorsing products either, just that they call that out.
        Although it is a good deal, I’ll wait for others to test the waters and post their reviews ;).

        Reply
  3. Majumdar

    This is truly an awesome hack for tenants. Tks, A Roy.

    Regards

    Reply
  4. Meet Sharma

    Any link for best credit cards for first time users?

    Reply
    1. Siddharth

      The link in article is good enough and covers almost all of them

      Reply
  5. Ganesh

    Thanks Abhishek!

    PayZapp could also be used to pay rent/transfer the money. Unfortunately, few days ago, per day transaction limit has been reduced to INR 5000 from 10000.

    Regards
    Ganesh

    Reply
    1. Abhishek Roy Post author

      PayZapp doesn’t allow Diners Cards to be used. Besides you have to do that manually each month.

      Reply
  6. Reshma

    This is food topic but, could anyone please explain what is credit limit ?
    Assume If, i get hdfc money-back credit card and credit limit is 50,000, What does that mean…
    Is it Monthly limit for me to spend 50,000 on that card or yearly limit to spend that much on card.

    Also if i cross that limit what will happen??

    Reply
    1. Abhishek Roy Post author

      Monthly limit. The bank usually don’t allow to go beyond the credit limit. If at all they allow on your request, you’ll be charged overdraft fees for that. Try not to spend more than 30-40% of your credit limit in a month. 🙂

      Reply
  7. Dibyaroop Ghosh

    My rent agreement is in the name of me and my wife….and landlord and his wife….does redgiraffe has provision of paying the rent to two different accounts? I pay the rent to landlord and his wife equally every month

    Reply
    1. Suhas

      Hey Dibyaroop, Yes you can split the rent and pay via RedGirraffe. Just add the account details when registering for RentPay. They are available on live chat & Whatsapp (not sure what the no. is check the site out) between 10-6 (I think) to answer any related queries you may be having. They’ve been super helpful so far, drop them an email if you want.

      Reply
  8. Gagan

    I am using this service for last 2 months. So far going well.

    Last month (April) payment was delayed but all well and on time this month (May).

    Reply
    1. Neeraj Kumar

      Do you know – how will a landlord know if the amount transferred by RG was infact sent by you. Is it necessary to inform the landlord of such transactions. I don’t want my landlord contesting that someone else sent that amount :P. I am sure RG will have addressed this concern.

      Reply
      1. Abhijit Haldar

        Hi Neeraj,

        I had the exact thought when I heard about them from my room mate. So we did some research and wrote to them. Found out that while a tenant gets confirmation via bank with attached rental confirmation straight from the bank, landlords account shows rent transfer entry from XYZ (for the rental amount) from RG nodal bank account. Though we ve registered only last week, can drop a note once the transaction moves next month. I don’t see any harm in checking with landlord once they receive the rent.

        Reply
      2. Abhishek Roy Post author

        The payment is made in such a way that the notes/transaction will mention your name and month of rent pay. And once, the payment has been credited to the land lord’s account, you will be notified by RG via phone/sms/email. Any one of them. So then you can confirm to the land lord about the transfer if you want.

        Reply
  9. Abhijit Haldar

    Also can someone suggest which is the three best credit card (for salaried employees) to be used for RentPay please? Currently am using Kotak Mahindra Credit Card.

    Reply
    1. Abhishek Roy Post author

      Depends on the level of cards you have. Obviously, better the card, better the benefits. There is no one card that is good only for rent purposes.

      Reply
  10. A Sarkar

    super article! thank for sharing it.
    I have now registered on redgiraffe and they have approved my registration too.

    Reply
  11. Antariksh

    How will they handle the below scenario?

    I am living in my relative’s house. I will book the relative’s savings account as Landlord’s account and decide some rent of 20k.

    Every month I will use my credit card to pay the relative, who will return me the money.

    Reply
    1. Abhijit Haldar

      Hello Antariksh,

      I work with Risk and Compliance at Tech Mahindra. As I understand while transacting via Red Giraffe we indemnify for all such wrong doings. Any wrong found at a later date tantamount to fraud on the part of the incumbent, in this case the tenant. Even otherwise, in your example your relative is receiving amounts as income which is assessable to tax. Now if such person decides to give back cash to you he would simply be parting away with their tax paid income. I know so many IT friends of mine who are using rent via PayTM by swiping their Amex credit card and taking out cash via PayTM’s payment bank back to their own accounts thereby creating a P2P transaction. In this process they are earning huge points as well from Amex. But such situations are short lived as PayTM would come to know some day that they are paying up Rs 2000 as charges for every Rs 100,000 swipe happening via their wallet. Having looked at RentPay from all possible risk and compliance angle, I am quite certain that its by far the best model. Also the banks runs its own checks on each tenant too. I was told by people at RG that some 18-20% customer applications gets rejected by banks or/and by RG post the verification test runs. So I guess I answered your qtn.

      Reply
  12. Sarthak

    Hi, Can I pay rental for my business premises (corporate office) using RedGirraffe?

    Reply
    1. Abhishek Roy Post author

      I think so, however, you have to appropriately declare everything in your ITR.

      Reply
    2. Liji George

      Yes, you can. We pay our Whitefield office rentals via RentPay using IndusInd Card.

      Reply
    1. Abhishek Roy Post author

      Yes you can do that. You can use those rent receipts for getting tax exemptions

      Reply
  13. Jagan

    QUOTE
    What are the RedGiraffe transaction charges?

    Rental payment less than Rs.10,000 : Rs.45 (inclusive of all ST)
    Rental payment greater than Rs.10,000: 0.39%+ST for each transaction.
    UNQUOTE

    What additional charge is levied over and above the rent? How much is the transaction fee on INR X? /Are there any hidden charges?

    Please note that transaction fees of 0.39% subject to a minimum of Rs 39/- per transaction shall be applicable for ICICI Cards, HDFC Cards, Kotak Mahindra Bank Cards, Axis Bank Cards and IndusInd Bank Cards. Along with the applicable service tax the gross transaction fee comes to INR 45 for every INR 10,000/- .However in case of SBI Cards, an additional banking transaction charge of 1.75% plus taxes shall be charged extra by the bank.

    Also, If this check box can be added below comments its easy to track the responses via email,
    * Notify me of followup comments via e-mail.

    Reply
    1. Abhishek Roy Post author

      Till a payment of ₹10K, they charge you ₹39+ ST. Above it, they’ll charge you a flat fee of 0.39%+ ST. For the comments notification I think Sid will be able to help

      Reply
  14. Raghuveer

    Please modify the post to include that there is an additional 1.75% plus taxes charged extra by the bank for SBI.
    Looking at the original post, I subscribed to SBI Elite card, but then with this 1.75% plus taxes extra by bank, essentially it becomes, 0.39% for RG + 1.75% for SBI plus taxes, which I think is comparatively more than compared to the Reward Points benefit?

    Reply
    1. Abhishek Roy Post author

      Well, when you want to subscribe through your bank, it is governed by bank rules. If SBI charges you an extra 1.75% for Utility payments that is because of SBI and not RedGirraffe. I have written a post about RedGirraffe. So I don’t know if there are any further charges by individual bank. I have HDFC, Yesbank and SBI cards. I am least bothered about SBI cards as they take more than what the give. I have used HDFC and Yesbank Cards. They don’t charge a dime.

      Reply
      1. Raghuveer

        Yes, thanks. Sincerely appreciate your blog. I wasnt even aware of something such as RG until I saw your post. Thanks for the same. I did not go through with SBI Elite because of these 1.75% charges. I thought I could meet the 4 lakh spend if Rent was also included. Now trying it via the HDFC Debit Card that offers 1% cachback before I decide what to do in future.

        Reply
      2. Sunny

        Hi,

        I think what he meant was for sake of complete information, you should mention the SBI thing, even RedGirraffe has mentioned it on their website as a separate line.

        Also since you have given an example of card names including SBI Elite, somebody might use their SBI Elite card on the website and not check properly on RedGirraffe website too.

        It would be helpful if you can highlight that in the section where you put the charges (0.39%) etc.

        Reply
  15. SG

    Thanks for the informative article.
    Do you know if one can register with RedGirraffe and pay rent with a credit card issues by a bank outside of India?
    Thanks,
    SG

    Reply
  16. supreeth

    i tried paying with hdfc diners premium card, request couldn’t be processed! can you please help with the info

    Reply
  17. Jasin Rasheed

    How many days it will take to transfer from Red giraffe account to House owners account.
    My house owner wants by every 6th rent amount and Remarks of house no. in every transaction.

    Every quarter i pay maintenance and deduct the same and give reduced rent to house owner. How will Red Giraffe works in that scenario. Will it go by only rental agreement amount or reduced amount also. And will it ask for a bank account of house owner to be mentioned in rental agreement.

    Reply
  18. Dibyaroop Ghosh

    Any one knows about paymatrix….i think they also facilitate online rental payments…..and one query about SBI cards 1.75%…..effectively if rent is 25K per month then if i use SBI card then i have to pay 0.39% RG=Rs 97.5 and SBI 1.75% = Rs 437.5…..hence a total of Rs 535 plus taxes….is my understanding correct?…..so for charges i would end up paying close to 7K in a year….is it a good deal to use SBI credit card for rent….please guide…thanks

    Reply
    1. Rohan Kartik

      I am based in Hyderabad. Paymatrix charges 2%. I think this is including tax. Add to it they ask the customer to provide credit card details with them. Didn’t make any sense. Too costly. You may choose to use some other card. My wife did check with SBI Card. She was told that there is around 2% cash back the bank is offering on RentPay. We ended up using ICICI Card. But you may check with the bank.

      Reply
  19. Sahil

    Thanks for sharing this. I have used it since two months with my father’s Infinia card. Hence we save approx 3% I guess since rewards on spends is 3.3% on infinia. However my rental is pretty high hence don’t mind keeping a card just for this. Which Card offers the best rewards on these payments?

    Reply
  20. Ashish

    Which card give best reward/benefit /cashback for paying rent via redgirraffe?

    Reply
  21. S bagchi

    all said and done. you’re paying a service tax as well which we are not paying while giving the rent directly.
    With GST in effect it would be an added 18% … Please correct me if I am wrong.

    Reply
    1. Alay Mehta

      Hi,
      I have been checking my Experian/credit score month on month for the last 6 months that I have been using RentPay. There has been a quantifiable improvement. It’s a no brainer that by paying Rs 56000 rent month on month the credit score swells up. I plan to apply for a house loan late next year. My bank tells me that with a credit score of over 740, I could expect 1% cheaper loan. Now for an average of 1 Crore loan, I am looking at Rs 80,000 savings per annum. All because I am regularly using my credit card to pay an otherwise mundane NEFT transfer with no benefits. Add to it all the cash redeemable points that one gains. 18% GST is on 0.39% fees only. So in effect, you are talking about a mere 0.0007% on account of GST. No issues at all. I am a CA and I can tell you it doesn’t get better than this. I for a change have actually started to like HDFC Bank for their innovative move of capturing rentals via credit card through their product RentPay. At least, they have introduced something meaningful other than all those brain dry discount offers of various FMCG products.

      Reply
      1. Abhishek Roy Post author

        HDFC Bank has nothing to do with RentPay. The latter is an independent company which has tie ups with a lot of banks including HDFC Bank.

        Reply
  22. Sid

    Can I pay with HDFC credit Card even though I do not have a bank account with HDFC (I have bank account with Axis)

    Reply
  23. Varun

    How can I register it via Yes Bank Preferred Credit Card. I don’t see any option on Yes bank internet banking site to add Red Giraffe as biller. Will Yes ‘bank Preferred Card or HDFC Regalia give better rewards points for rent around 25k.

    Reply
    1. SNEHA SANYAL

      We use YesBank CC too. I suggest you may check directly with RedGirraffe at their site.

      Reply
    2. Abhishek Roy Post author

      You have to send a filled form to their office in Chennai I guess. The form is for Yes Pay Registration of Biller

      Reply
  24. Robin Sebastian

    SBI Card emailed today that they have reduced the charges on rental payment via RentPay to 0.39% plus tax. Hereafter NO additional charges (1.75%) shall be charged on any SBI Card transactions on RentPay. I am told RentPay company shall also clarify this position in case one were to independently verify with them.

    Reply
    1. Abhishek Roy Post author

      Good. If this happens then, people can use even SBI cards to use RentPay

      Reply
    2. Saket S

      Hey Robin can you please share the email via screenshot or something ?

      Reply
  25. Smarak

    Has anyone used SBI Prime for rent pay?
    They offer an equivalent of 20 Reward Points per Rs. 100 spent on standing instructions of Utility Bills payments, which is equivalent to 5% of the amount spend. I think rent pay will fall under utility bills. In that case, the savings will be huge.

    Can anyone confirm if this is the case?

    Reply
    1. Gudrun Nehar

      There are many in our office (LIC) who use SBI Credit card on rent pay. Can check and revert. You may also check with SBI directly. I believe American Express, Standard Chartered, Citibank are also onboarding rent pay.

      Reply
  26. Ashish

    which is best card for rent payment on redgirraffe for rewards? recently ICICI reduced reward point on this.

    Reply
    1. Abhishek Roy Post author

      There are a lot of cards that are good. It depends on which of the cards you have. One of the best cards that you can get for Utility payments is SBI Prime.

      Reply
  27. Sarat

    Can anyone using SBI Prime confirm if 5% cash-equivalent reward points are applicable for Rent Pay? In SBI card account, utility payments and rental payments have been separated. I’m wondering if that means rent won’t be counted as utility bill payment. Customer care could not answer this question too.

    Also, can one use Diners Premium for Rent Pay? Which is the payment interface?

    Reply
    1. Sarat

      Also, I’d like to know if Diners Premium gives any incentive (apart from boosting credit score) for rental payment?

      Reply
      1. Sulabh Gupta

        Abhishek,
        Does that mean insurance payments via autopay is covered too?

        Thanks

        Reply
    2. Priyank

      Yes, I have got 5% Cashback (20 RP/ 100₹) AND there is no cap on the same as well. The points were credited soon as the debit amount was moved from ‘In Process’ to ‘settled’
      Enjoy this till SBI puts a cap on the reward points earned through Utility bills

      Reply
      1. Ashwin

        I also have the Prime card and it is the best card for Utility and other accelerated RP spends plus spend based rewards. Easily we can aim for 4+% reward rate for a Rs 5 lakh spend. Points get credited in two days.
        Can anyone confirm if we can do a statement credit with these RPs.

        Reply
        1. Abhishek Roy Post author

          Great. Yes, you can do statement credit with SBI Prime Card. Tell me one thing, which variant do you have? VISA Signature or World MasterCard?

          Reply
  28. Phani Kiran

    Hi,

    The rent agreement is between my wife and owner’s wife. I have owner wife’s PAN card. But the bank account i transfer rent is in the name of Owner. Any idea if RentPay works in this case?
    Also i have Yes Preferred. Is it better to use Yes Preferred card or should i apply and go for SBI Prime?

    Reply

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