CRED Rent Pay Review: All You Should know

Now you can pay your rent through the CRED app which means you can pay your rent with a credit card and enjoy the liquidity of funds and reward points as well. At the time of making the first rent payment, you will be having various cashback offers (Card specific offers) to pick from.

CRED users have earned near to Rs 51 Crores of benefits by paying rent on the credit card.

What is CRED?

CRED is an app that rewards you whenever you make the payment of your credit card bills on it. As of now, the customer base of CRED has increased to 5.90 Million users and rewards of more than worth Rs 5 Crore are distributed daily.

Who could have thought that Payment of credit card bills could also get you rewards, (except Kunal Shah) who made it possible? Kunal, who founded Freecharge in the year 2010, after selling the Freecharge to Snapdeal in the year 2015, founded CRED in the year 2018.

Read: CRED App Review

Till now, I’ve earned the benefits worth Rs 53,000.

What is CRED Rent Pay?

Rent Pay is the new product of the CRED which has been made exclusively for the Users of CRED for rent Payment. Apart from the rent, you can also pay the society maintenance fee, brokerage, etc. Though the rent pay facility. You can pay your rent with a credit card and enjoy the liquidity of funds and reward points as well.

CRED Rent Pay Benefits:

Below are the benefits of the CRED rent Pay.

Cashback

One-time cashback for Paying rent for 3 consecutive months will be there on certain cards with the minimum threshold.

Credit Card Rewards

Every credit card comes with rewards points, the nature of rewards differs from card to card and bank to bank. when you make the transactions on the credit card then you get rewards which may be in the form of cashback or gift voucher or another mode as per the nature of the card. So when you make the rent transactions, you will get rewards too.

Bonus Rewards

Apart from the regular reward points, banks also provide an additional bonus or milestone rewards which are awarded based on minimum spends. When you make the rent transactions then you move towards achieving the goal of minimum spends.

Interest Free Credit Period

You get a 45 to 50 Days Interest-free credit period to clear the dues credit card transactions. so to make the payment of every credit card rent transaction (If the transaction has been made on the very next date of the bill generation date) you get a 45 to 50 days interest-free credit period.

CRED Coins

You get equivalent CRED coins of the credit card payment you make on CRED, so when you make the payment of your credit card by which you made the rent payment then you get CRED coins if the payment has been made on the CRED app.

Examples showing the benefits of CRED Rent Pay

I am taking two credit cards as an example to show the benefit of rent Pay, First example is the Bank of Baroda CA exclusive credit card and the second one is of HDFC Regalia credit card.

Rent Pay through Bank of Baroda CA Credit Card

If Amount paid is Rs 15,000 through the Bank of Baroda credit card, then the net benefit for 3 months will be calculated as below:

Service Charge

This fee charge goes in ensuring instant settlements of your transactions and a smooth payment experience for you. At the time of making the rent payment this cost, @1.55% per transaction is added to the transaction value. so the total cost of the transaction is increased by 1.55% however to the landlord, only the net amount goes i.e. other than service charges, example here: 15000*1.55% = 232.50 Rs, for three months this cost will be = 232.50*3= 697.50 Rs.

Cashback

One time cashback for Paying rent of Rs 15000 for 3 consecutive months will be as follows:

• For May month rent Payment, the cashback will be Rs 400
• For June month rent Payment, the cashback will be Rs 500
• For July month rent Payment, the cashback will be Rs 600

Credit Period

To make the payment of every credit card rent transaction you get 45 days interest-free credit period.

Credit Card Rewards

You get Rewards when you make the transactions on the credit card, reward points on Bank of Baroda CA credit will be, 1 Reward point (per 100 Rs) value is 25 paise, so when you spent Rs (15,000*3) the value of rewards will be = 45000/100*.25= Rs 112.50

Fee Waiver

Many banks give fee waivers if the minimum spend has been made within 90 days, so by making these transactions that benefit can also be availed. No fee in Bank of Baroda CA credit card. We can take Rs 500 for the example.

Milestone/Bonus Rewards

Banks give bonus rewards for spending the eligible amount to achieve the bonus points. Bank of Baroda CA card gives you 1,000 bonus reward points on doing 5 transactions worth Rs 1000 or more each month, assuming the criteria is fulfilled along with rent Pay transaction. So the net reward shall be 3000*.25= 750 Rs

CRED Coins

When you pay your Credit Card bills through the CRED app, you get the CRED coins as well, which can be utilized as per the available options on the CRED app. On Spending Rs 45,000 you’ll get CRED coins which you can utilize as per the available offers. Impact in value can’t be determined here as it depends on the available rewards.

In Nutshell, the Net saving for 3 months in the case of Bank or Baroda CA card in Rs will be:

Cashback Value during offer period	1,500
Reward Value	113
Fee Waiver with GST	590
CRED service charge	-698
Milestone Rewards	750
Interest Income*	222
Total in Rs	2,477

* Assuming that the rent amount has been kept in saving account for 45 days @ 4% P.A.

Please note that the above value is for 3 months only, and for the complete year the value will be changed. For 12 transactions the impact will be as below:

Reward Value	450
Fee Waiver with GST	590
CRED service charge	-2,790
Milestone Rewards	3,000
Interest Income*	888
Total in Rs	2,138

* Assuming that the rent amount has been kept in saving account for 45 days @ 4% P.A.

Also Read: Bank of Baroda CA Credit Card Rewards

Rent Pay through HDFC Bank Regalia Credit Card

If Amount paid is Rs 25,000 through the HDFC Bank Regalia credit card, then the net benefit for 3 months will be calculated as below:

Service Charge

This fee charge goes in ensuring instant settlements of your transactions and a smooth payment experience for you. At the time of making the rent payment this cost @1.55% per transaction is added to the transaction value. so the total cost of the transaction is increased by 1.55% however to the landlord, only the net amount goes i.e. other than service charges, example here: 25000*1.55% = 387.50 Rs, for three months this cost will be = 387.50*3= 1162.50 Rs.

Cashback

One time cashback for Paying rent of Rs 25000 for 3 consecutive months will be as follows:

• For May month rent Payment, the cashback will be Rs 400
• For June month rent Payment, the cashback will be Rs 500
• For July month rent Payment, the cashback will be Rs 600

Credit Period

To make the payment of every credit card rent transaction you get 45 days interest free credit period.

Credit Card Rewards

You get Rewards when you make the transactions on the credit card, reward points on HDFC Bank Regalia credit card will, 4 Reward point (per 150 Rs) value is 20 paisa, so when you spent Rs 75,000 the value of rewards will be = 75000/150*.20= 100 Rs

Fee Waiver

The Fee on HDFC Regalia credit card is Rs 2500+GST is waived off if you have spent more than Rs 3 Lac in the previous year then the renewal fee is waived off.

Milestone/Bonus Rewards

In HDFC bank Regalia credit card Rewards are given when you spend more than Rs 5 lac in a year, which is too high so for calculation here not taking any reward.

CRED Coins

When you pay your credit card bills through the CRED app, you get the CRED coins as well, which can be utilized as per the available options on the CRED app. On Spending Rs 75,000 you’ll get CRED coins which you can utilize as per the available offers. Impact in value can’t be determined here as it depends on the available rewards.

In Nutshell, the Net saving for 3 months in the case of Bank or HDFC Bank Regalia credit card in Rs will be:

Cashback Value	1,500
Reward Value	100
Fee Waiver with GST	2,950
CRED service charge	-1,163
Milestone Rewards	–
Interest Income*	370
Total in Rs	3,757

* Assuming that the rent amount has been kept in saving account for 45 days @ 4% P.A.

Please note that this value is for 3 months only, and for the complete year the value will be changed. For 12 transactions the impact will be as below:

Reward Value	400
Fee Waiver with GST	2,950
CRED service charge	-4,650
Milestone Rewards	–
Interest Income*	1,479
Total in Rs	179

* Assuming that the rent amount has been kept in saving account for 45 days @ 4% P.A.

Also Read: HDFC Bank Regalia Credit Card Rent Pay

How to use the Rent Pay feature on the CRED app?

Using the rent Pay feature is quite easy. Paying rent doesn’t take more than 3 minutes. you just need to follow the below steps:

Open the CRED App, go in the cards section, there you will find CRED max, below that you will see Pay now option to make the rent Payment. Now you need to follow the below mentioned process to make the rent Payment:

• Enter the amount you want to pay

• Write the Name of the Landlord to whom you want to make the rent Payment

• Details of Landlord’s bank account or you can also enter Landlord’s UPI address

• Add the address of the house/office for which you wish to make the rent Payment

• Once done, you will see all the details filled by you, now, you just need to click on confirm to transfer the payment.

My Take:

There are other service providers as well who also provide you the rent Pay feature such as No Broker, Paytm, etc where you can make the payment through the credit card and earn the cashback as you get in CRED but so you can compare the service charges before initiating the rent transaction on any of the apps.

Apart from the rent, you can also pay the society maintenance fee, brokerage, etc. Though the rent pay facility through credit card is good, at the same time, it also comes with a cost of 1.55% fee of the payment made.

CRED gives you a reminder to pay the rent amount on the basis of the last transaction you made. So You don’t forget to take the benefit of the CRED rent Pay feature.

Despite everything said, the most important thing which I consider is liquidity if you need money and at the same time you need to make any rent payment or maintenance, etc then you can make the payment through the credit card by using the CRED rent pay which will reap you all the benefits as explained above.

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