There are a great number of Credit Card usage for different individuals. Some may use it for shopping, travel, entertainment, or for any other purposes, no matter how big or small. A credit card can also be used for Utility bill payments. A utility is a vital service that is offered to everyone, such as water, rent, electricity, or gas.
In this article we will determine whether it is good or bad to pay rent through credit card by looking at the pros and cons of doing so:
Advantages of Rent Payment using Credit Card:
Below given are the advantages you get when you pay rent through credit card:
When you pay your rent with a credit card, you might get a variety of incentives and benefits.
Rent is deducted automatically, so there's no way you'll forget to pay it.
Rent Payment using Credit Card also allows you to save money in the event of a financial emergency.
You can build a credit history if you pay rent through credit card which will help you to increase your credit score.
Paying your rent using your credit card can help you save time and energy.
Credit Card rent payment makes it possible to pay rent from anywhere in the world.
You can increase your savings using reward points and other rent payment offers.
Also Read - Tips To Effectively Control Credit Card Spending
Disadvantages of Rent Payment using Credit Card:
Rent Payment using credit card can have the following disadvantages:
When you pay rent using credit card, you are increasing your credit liability and if you are not able to pay your dues on time, it will affect your credit score.
Rent payments made by credit card are frequently subject to processing fees.
There can be certain hidden charges on rent payment that we might not know about.
If the dues are not paid on time, the interest rate is roughly 35-40 percent.
Your credit score will be affected if you have a high credit use rate. If your credit score is poor, you may have trouble getting a loan or a new credit card in the future.
Bottom Line:
It is good for you to pay your rent via Credit Card if you pay your bills constantly on time. But if you are somebody who is not consistent with your timely payments then you need to consider other rent payment methods to avoid interest accumulation and hectic credit burden.
Additional Reading - How To Make Travel Credit Cards Work For You?