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.
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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.
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.
Charging Rent on Credit Cards
How will it benefit by charging your rent on credit cards? 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.
Helps CIBIL Score
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 like upgrades & limit enhancements.
So this way, it becomes very easy to pay the rent not by cash but by credit card and earn profits (as reward points).
- Cardexpert Rating: 4.5/5
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.