Credit Card: Want to make house rent payment with credit card? Know what experts say...

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Consumers using credit cards often pay rent using credit tools. By doing this, they also get reward points. Along with this, the problem of withdrawing money from ATMs also gets rid of. But you need to know where and how much credit card should be used. Let us know what are the opinions of experts on this subject...

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Increased use of credit cards
Looking at the trends of the last few years, the number of people paying house rent through credit cards has increased rapidly. Credit card users pay rent using platforms like Cred and Paytm. But experts believe that paying house rent through credit cards should be avoided. Paying house rent is a big expense for the salaried class. Hence credit card users often pay rent using credit tools as it gets paid quickly. It also helps in avoiding the hassle of cash withdrawal from ATMs. People use this facility even when there is a shortage of cash.

Credit cards serve multiple purposes
Experts say that a credit card is a kind of financial tool, which helps in everything from making purchases to paying bills during a cash crunch. Many types of goods can also be purchased through credit cards even when there is no money. This service became very popular because many platforms including Paytm and Cred are providing the facility to the users to pay the house rent using their credit cards. However, the charges on these platforms range from 0.4 per cent to 2 per cent.

Greed for rewards points
Some people also use credit cards to get reward points. They also used to pay the rent of the house from the card itself. However, reward points are available only on payment of service charges levied by the facilitator platform like credit etc. Furthermore, there is no technology to determine whether users are paying rent or are paying relatives/friends in cash instead of credit. Banks should think of making it transparent. Hence ICICI Bank has now come up with a one per cent fee provision for its credit card users, who pay rent using the card.

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What is the suggestion of experts?
Experts suggest that one should avoid paying house rent using their credit card. He says that rent is a fixed expense. This is not a sudden expense, so it should be part of the monthly plan. Experts say that the rent of the house is a fixed and pre-monitored expenditure. One must understand the proper use of credit cards. We can use credit cards in times of unexpected expenses. Whereas we don't want to keep cash for shopping, earning cashback or rewards for fuel payments. This is the reason why credit cards are being used indiscriminately for all these needs as well. Now banks have understood this, so banks also charge like service providers. So there is no justification for paying rent etc. by credit card.