A credit card offers convenience and security for many purchases—from buying groceries to paying for hotels. But is it possible to use a credit card to pay for utilities or corporate rent? In a nutshell, yes, you can use a credit card to pay for your corporate rent and other utility expenses. One of the most significant monthly business expenses is rent, which you can now conveniently pay with your credit card via a third-party portal.
Finding a way out to pay your rent this month without taking money out of your salary or bank account? You can pay the rent in these situations with a credit card. Many firms found it challenging to pay the rent for their office spaces on time when the pandemic affected cash flow. At this point, some platforms provided the option of rent payment by credit card for a small convenience fee. Credit cards can be beneficial for timely rent payments if you are confident in paying back your debts.
Continue reading to learn more about credit cards and how you can streamline your rent payments with their help.
How to pay rent using a credit card?
Credit cards provide immediate access to funds and are a practical way to pay your rent on time each month without defaulting. Numerous websites and online tools enable rent payment by credit card. You only need to register your personal information, credit card information, and your owner’s bank information on the service site. Once the information entered has been validated, rent payments by credit card can be made quickly. Most apps and portals also let you create a standing order to automatically deduct the specified amount from your credit card on the selected date.
Rent payments by credit cards typically incur a small fee from the service provider and the card issuer. Additionally, paying rent by a credit card can earn you enticing incentives and discounts.
Steps for rent payment by credit card
Follow the quick and easy steps for rent payment by credit card:
- Visit the website of an online rent payment service provider
- Enter your details to register and create an account
- Enter the rent details and your landlord’s bank details
- Once the details get recorded, you can make rent payment by credit card anytime and anywhere
- You will get a notification on your screen whether the transaction is successful or not
Factors to consider for rent payment by credit card
- Service charges: Credit card processing fees for rent payments vary from provider to provider and are frequently associated with this payment method.
- Interest payments: If you don’t pay your credit card bills on time, interest will accrue on balance.
- Impact on your credit score: Making a rent payment by credit card may increase your credit utilisation ratio, which could lower your credit score. As a result, credit usage is a crucial component of credit score and should always be lower than 30%.
Benefits of rent payment by credit card
Rent payment by credit card will enable you to use the remaining credit on the card and take advantage of other perks. Here are a few advantages:
- Earn reward points on your credit card: In contrast to cash transfers, credit card expenses allow you to accumulate extra rewards that may be redeemed for cash. These rent transfer apps also let you earn enticing discounts, coupons, and offers from well-known brick-and-mortar or online retailers.
- On-time payments without stress: Running into financial difficulties can be very distressing. However, rent payment by credit card can guarantee that all your electricity bills, company rent, and house rent are delivered on time and without defaults.
- Enhance your credit score: Paying your credit card bills on time and making regular rent payments can raise your credit score. However, it is never a good idea to utilise more than 30% of your credit limit because doing so can harm your credit score.
- Simple bank transfer: Bank transfers take a lot of time unless you use IMPS or UPI. There are, however, a variety of sites that allow instant rent payment by credit card. Rent payments can also be automated for hassle-free monthly transfers on a specific date, and you can receive an SMS message when the transaction is complete.
- Reach spending milestones with ease: Many credit cards these days come with an annual fee waiver and other milestone-based perks, which means you can renew your credit card for free or earn more rewards if you fulfil the spending requirements.
Rent payment by credit card have benefits, particularly for business owners who only sometimes monitor rent payments. Once they decide to use credit cards to pay their rent, the rent records are fetched, and the payments are completed automatically. EnKash is one such platform that can streamline your rent payment by credit card. A single approval process allows you to manage all your rental costs for all your business locations. It also assists you in keeping track of TDS and tax benefits, and it is simple to maintain records of payments that have been made and approved. Explore and start with EnKash right away!