“Dear Customer, starting 20-Oct-22, all transactions on your ICICI Bank Credit Card towards rent payment will be charged a 1 per cent fee,” the private sector lender has informed its customers via SMS on September 20, 2022.
Who will be impacted?
Several tenants use credit cards to pay rent via credit cards through platforms like Cred, RedGiraffe, Mygate, Paytm and Magicbricks, among others. These third party service providers charge a convenience fee.
For example to pay rent using credit card via Paytm, a tenant has to add the landlord’s bank account details or Unified Payment Interface (UPI) number under the recipient option. Then he or she can pay the rent through his or her credit card.
Credit card charges:
If you are paying rent through credit card, do remember to pay your credit card bill on time. Your credit score will be impacted if you miss a payment.
Credit card holders must note that the interest on the credit card tends to be on the higher side. “…you get an interest-free repayment period but at the same time payment needs to be within the specified period. Delaying bill payments will further add to the interest. You will ultimately end up paying more than what you would have paid by simply using your debit card or cash to pay the rent,” the lender added in a blog post.
Those who are paying rent via credit card, should check their credit card limit from time to time. Credit card holders must ensure that their credit cards are not maxed out. In other words, maxed out means that there is no credit available for purchases or other transactions until you reduce balance.
It is advisable to pay your rent using your credit card only if you make your payments on time.