“Dear Customer, From 20-Oct-22, all the transactions will be on you icici bank credit card 1 per cent will be charged for payment of rent,” the private sector lender has informed its customers via SMS on September 20, 2022.
Who will be affected?
Many tenants use credit cards to pay rent through the platform via credit cards: CreditRed Giraffe, Maegate, Paytm and Magicbricks, among others. These third party service providers charge a convenience fee.
For example, to pay rent using a credit card through Paytm, a tenant needs to add the landlord’s bank account details or Unified Payment Interface (UPI) number under the Recipient option. Then he can pay the rent through his credit card.
Credit Card Fees:
If you are paying rent through credit card, don’t forget to pay your credit card bill on time. If you miss a payment, your credit score will be affected.
Credit card holders should note that the interest on credit cards is high. “… you get an interest free repayment period but at the same time the payment must be within the specified period. Delay in bill payment will lead to further increase in interest. In the end you will end up paying more than what you would have paid for rent. Simply use your debit card or cash,” the lender added in a blog post.
Those who are paying rent by credit card should check their credit card limit from time to time. Credit card holders should ensure that their credit cards are not maxed out. In other words, max out means that there is no credit available for purchases or other transactions until you reduce the balance.
It is advised that you pay your rent using your credit card only if you make your payments on time.