Here’s how you can pay your rent with your credit card
- CRED has launched two new products for its users – CRED
RentPayand CRED Stash, available for users who have a credit ratingof 750 and more.
- CRED RentPay allows users to pay their rent on credit.
- CRED Stash allows users to benefit from an instant line of credit up to ₹ 5 lakh.
In addition to allowing users to pay their rent, CRED would also work to allow users to make payments such as maintenance fees and security charges to landlords using their credit cards.
The first product, CRED RentPay, allows users to free up money by paying their rent on credit. Users can pay their household rent using their credit cards from the CRED app.
Using this, users will be able to get an interest-free rental period of credit, earn reward points on their credit cards, and earn CRED coins when paying their credit card bill on the CRED app.
To use the new CRED RentPay feature, users will need to add their owner’s bank account or UPI details in the app. This will allow users to transfer the rent from their credit card directly to the landlord’s account.
CRED will charge users a transaction fee of 1% to 1.5% depending on the user’s credit card network. This means that if you are using CRED RentPay to pay 20,000 rent, you will need to pay 200-300 to CRED.
CRED Stash was launched as a pilot with IDFC FIRST Bank and the company claimed it was the only such offering in India. The company added that it will expand with other banking partners upon completion of the pilot.
CRED Stash is an instant online line of credit that will allow CRED users to get credit quickly without having to go through the application and verification process.
CRED users will get a pre-approved line of credit of up to 5 lakh and users will be able to withdraw any amount up to their pre-approved limit. Users will be able to select the length of the loan. CRED claimed that the interest charged represents one-third of the interest rates charged on credit cards. The pre-approved limit will depend on the user’s credit score and their credit card limit.