Want us to help you with anything?
Request a Call back

This field is required Only alphabetes are allowed
This field is required Only alphabetes are allowed
Please enter valid number
Please enter valid email
Please select product type
Please enter valid pincode

Thank you for your request.

Your reference number is CRM

Our executive will contact you shortly


2 mins Read | 1 Year Ago

Why Should you Avoid Paying Rent using your Credit Card?

Why should you avoid paying rent using your Credit Card?


Using a Credit Card for all kinds of purchases has become a common occurrence. There was a time when the Credit Card was used only for major purchases. However, nowadays a Credit Card is used for everything right from grocery shopping to cab payments. But, the question is should you also use your Card to pay your monthly rent? After all, it is one of your most significant expenses. Here’s why using a Credit Card for rent payment can be a bad idea. Read on to decide for yourself.

Your credit score might take a hit

The biggest drawback of using a Credit Card to pay rent is that your credit score can take a dip if you miss a payment. However, you have nothing to worry about if all your Credit Card bills are paid on time.

If your credit score takes a hit, it will be difficult for you to secure loans further down the line. Even if you do manage to get a loan, the interest rate will be higher owing to your low credit score.

Impact on Credit Utilisation Ratio

The more you transact through your Credit Card, the higher your credit utilisation ratio, rent being a major expense. If you get into this habit of paying rent using your Credit Card every month without paying the credit bill on time, the credit balance will become an issue.

On the other hand, due to such a big monthly expense, your credit utilisation ratio will keep increasing. If your ratio is more than 30% of the prescribed credit limit, your credit score will plummet.

  • Higher interest rates on Credit Cards

There is no denying that the Interest on Credit Cards tends to be on the higher side. Of course, 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.

  • Maxing out your Credit Card is a possibility

Lastly, if you keep on paying your rent, you will eventually max out your Credit Card. The simplest way to explain the idea of a maxed-out Credit Card is that you can no longer use it to make any payment – even the minimum payment on a Credit Card. Your credit score will also plummet further when you keep maxing out your Credit Card.

Should you never use Credit Cards to pay the rent?

Summing up the discussion above, all things boil down to one factor – paying your Credit Card bills on time. You can pay your rent using your Credit Card if you are committed to timely repayments.

In fact, just as you get Reward Points with every spend on your ICICI Bank Platinum Credit Card, you will also get points on paying rent on time. Your credit score will also improve. However, you will have to keep the repayment date in mind. Hence, it will be wrong to completely stop you from using Credit Cards for paying your rent. Just remember to make your payments on time.


People who read this also read

View All


View All
2 mins Read | 1 Year Ago
How Credit Cards improve the personal finances of new earners
Credit Card

Scroll to top