Credit cards have become one of the most convenient mediums of making payments. Be it online shopping or making cashless transactions on the go, credit cards are now preferred by all. But ever heard of using a credit card to pay your rent? Yes, it is possible and it comes with some benefits too like earning reward points. The rent is among the biggest expenses one makes every month.
RedGirraffe, a London-based company, is offering the facility to pay your rent through credit card using its online platform ‘RentPay’. Some banks like State Bank of India, ICICI Bank, HDFC Bank, IndusInd Bank, Axis Bank and Kotak Mahindra Bank have collaborated with RedGiffarre. If you hold a credit card at one of these banks, then use your credit card to pay the rent.
To avail, this facility on your cards, visit www.redgirraffee.com and create your RD Property ID and fill up details of your rental property along with the rent agreement. The tenants will be required to fill in bank details of the owners. Post submission, the tenant will receive an email for giving standing instructions to the bank. Once the one-time registration process is completed, every month at a predetermined date the rent will be automatically debited.
There are 17 checkpoints that are carried out between RedGirraffe and the bank and the complete verification process takes about 50 working days. A transaction fee of 0.39 percent with a minimum Rs 39 is charged by banks apart from the service tax that is levied.
Despite the charges, making payments from your credit card has its own advantages. For instance, using this mode gives 45-60 days of credit as the rent remains in the saving account, earning you interest. Since the rent payments are a large amount, using a credit card earns the users reward points which can be redeemed later. The mode also helps the user build a good credit score which will help him/her get loans at better rates in future.