Last updated on June 21st, 2023 at 02:14 pm
For many individuals, house rent commands a substantial part of their monthly expenses. If you are one of them, know how paying the rent with a credit card can benefit you. House rent is a monthly expense you can’t escape if you live as a tenant. More often than not, people use cheques or bank transfers to pay rent these days.
While many people use credit cards to make payments for various other expenses, such as shopping online and offline, dining at a restaurant, ordering food using a food app, paying school fees for their children, etc., house rent often needs to be added to this list.
But are you aware that paying the rent with a credit card can benefit you in several ways? Let’s look at some benefits of paying rent using a credit card.
Ensures Effortless And Timely Payment
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Paying rent on time often becomes challenging for many individuals, especially if the salary comes after the due date. You can easily overcome this issue by opting for auto-debit of the rent amount from your credit card.
A major advantage of rent payment using a credit card is that it offers an effortless way to handle this monthly recurring expense. It is easier than making payments through Internet banking or writing a cheque.
Further, it enables you to pay rent on time so you don’t make payment delays, regardless of whether you have money in your savings account.
Helps Improve Your Credit Score
Making rent payments through a credit card is an easy and effective way to improve your credit score. Making regular and on-time payments on a credit card improves your payment history, automatically increasing your credit score.
By paying your rent with a credit card and then clearing the credit card dues on time, you can build your CIBIL score. In other words, you can convert your rent payment into an opportunity to improve and maintain a high credit score.
Suppose you have a high credit score and a good credit history. In that case, it becomes easy for you to get credit from banks and other financial institutions for various purposes, such as a personal loan to meet an immediate financial requirement or a home loan to book your own house.
Enables Earning Of Rewards Every Month
Almost every credit card provider offers reward points or loyalty points to cardholders. Banks calculate such reward points on the payments cardholders make through the cards.
Using your credit card for rent payments can earn various rewards for this expense. You can earn cash back, air miles, gift vouchers, and other rewards depending on your credit card.
Many credit card providers also provide loyalty points for every transaction you make through a credit card. You can redeem these points later to obtain various discounts while shopping, dining out, refueling your vehicle, etc.
Improves Personal Liquidity
Rent payment through a credit card enables you to make deferred payments even if you continue paying your rent on time. Suppose you pay your rent on the 7th of this month with your credit card. The date on which your credit card bill gets generated is the 20th of every month.
But the due date for your card payment falls on the 5th of the following month. If you make your credit card payment on the due date, you will have deferred your rent payment by almost a month.
Also, until you pay your credit card bill, the amount for rent remains in your savings account. You can even use the money to address other financial requirements. This way, you will be able to improve personal liquidity.
The Bottom Line
Credit cards are an effective means to pay your rent with minimum chances of delay. At the same time, you also enjoy other benefits, such as increasing your credit score, earning rewards, and even improving personal liquidity. So, next time when you have to pay rent, consider your credit card for the purpose.
