Credit Card Rent Pay Returns: 3 Costs You Must Know

PhonePe and CRED may soon let you pay rent using a credit card again. Sounds great for reward points — but processing fees, interest traps, and RBI rules mean it could cost more than you think.

Here's what happened: PhonePe and CRED are testing credit card rent payment features with select users before a broader relaunch next month.. RBI had flagged concerns last year about fintechs loading credit card money into wallets — forcing platforms to pause rent payment features.. The relaunched feature works differently from wallet loading — rent goes directly to the landlord, not into a prepaid wallet first..

What you should do: Calculate the true cost: add platform fees (1.5–2%) to your monthly rent before deciding if reward points make it worthwhile.. Check whether your credit card charges a cash-advance fee or a separate transaction fee for rent payments — call your bank to confirm.. Avoid carrying a balance — if you cannot pay the full credit card bill by due date, the 36–42% annual interest will wipe out any rewards earned..

Pro tip: Credit card reward points on rent payments are often capped at 500–1,000 points per month by card issuers — verify your card's terms before assuming you will earn full points on a ₹20,000+ rent.