credit cards

Best Credit Card for Rent Payment in India 2026 — After the September 2025 RBI Rules

Can you still pay rent with a credit card in India in 2026? What changed after September 2025 RBI rules? Which platforms still work and which cards earn rewa...

For years, paying rent via credit card was a popular way to earn reward miles on one of the largest monthly expenses Indian renters face. Apps like CRED, PhonePe, and PayTM facilitated credit card rent payments, and several premium cardholders earned lakhs of miles on their annual rent.

September 15, 2025 changed this significantly. The RBI instructed payment aggregators to stop processing rent payments via credit cards because landlords are not registered merchants and do not have merchant accounts. This effectively shut down credit card rent payments through most mainstream apps.

This guide explains what still works in 2026, which platforms survived the change, and what it costs.

Bottom line: Paying rent via credit card in India in 2026 is still possible — but through only a handful of specialised platforms, at a processing fee of 0.39% to 1%, and with fewer cards earning rewards on these transactions than before. The era of free rent-via-credit-card is largely over.

What Changed in September 2025

The RBI directed all Payment Aggregators (PAs) — including CRED, PhonePe, Paytm, BillDesk, and others — to stop processing credit card payments where the recipient (landlord) does not have a registered merchant account.

The logic: credit cards are designed for merchant payments where the merchant pays MDR. A landlord receiving rent is not a merchant. Processing rent as a credit card payment misused the credit card ecosystem, and RBI tightened the rules.

Platform	Status After September 2025
CRED Rent Pay	❌ Stopped processing credit card rent payments
PhonePe rent payment	❌ Stopped for credit cards
Paytm rent payment	❌ Stopped for most credit cards
Google Pay rent	❌ Not supported for credit cards
RedGirraffe	✅ Still operational — 0.39% + GST fee
NoBroker Pay	✅ Still operational — 1% fee
Rental platforms (Housing.com etc.)	Varies — check current status

Platforms That Still Work — and What They Cost

Related reading: IDFC FIRST Wealth Credit Card Review.

1. RedGirraffe — Best Rate

Feature	Details
Processing Fee	0.39% + 18% GST on fee = effectively 0.46% total
Cards Accepted	Visa, Mastercard, RuPay (Amex not accepted)
How It Works	Landlord need not register. You initiate payment, RedGirraffe collects and transfers to landlord's bank account.
Limit	Up to Rs 2 lakh per transaction typically
Setup	One-time landlord account details entry, then recurring payments possible

Real cost: On Rs 30,000 monthly rent, RedGirraffe fee = Rs 30,000 × 0.46% = Rs 138 per month = Rs 1,656 per year.

2. NoBroker Pay — Alternative

Feature	Details
Processing Fee	1% + GST
Cards Accepted	Visa, Mastercard, RuPay, Amex (wider acceptance than RedGirraffe)
Additional Feature	Also useful for NoBroker's own ecosystem users (flatmates, property search)
Cost on Rs 30,000 rent	Rs 300/month + GST = Rs 354/month = Rs 4,248/year

Which Cards Still Earn Rewards on Rent Payments in 2026?

Related reading: How to Use a Credit Card Wisely India.

Even where rent payment via credit card is possible, most major cards have excluded rental payments from reward earning:

Card	Rewards on Rent?
IDFC FIRST Wealth	✅ Yes — one of the very few cards that still rewards rent via BBPS/registered platforms
HDFC Infinia	❌ Rental MCC excluded since 2024
Axis Magnus	❌ Rental MCC excluded
SBI cards	❌ Excluded
HSBC TravelOne	❌ Rent excluded
Yes Bank Marquee	❌ Rent explicitly excluded (transaction fee added Jan 2026)
Standard Chartered Ultimate	Check current MITC — was previously included

IDFC FIRST Wealth is the standout exception — it still earns reward points on rent and utility payments via BBPS-enabled platforms. If you pay significant rent, this card earns where others do not. The card is lifetime free with 1.5% forex markup.

Is It Worth Paying Rent via Credit Card in 2026?

The calculation depends on three factors: processing fee, card reward rate on rent, and the card's annual fee.

Monthly Rent	RedGirraffe Fee (0.46%)
Rs 15,000	Rs 69
Rs 25,000	Rs 115
Rs 50,000	Rs 230

The maths in 2026 does not favour credit card rent payments as a pure reward-earning strategy. The processing fee exceeds the reward earned on most cards. The primary reason to still pay rent via credit card is cash flow management — deferring the cash outflow by 30-45 days, not reward earning.

Alternative: Use Credit Card for Rent-Adjacent Expenses Instead

If the goal is to earn more rewards rather than specifically pay rent, redirect credit card spending toward high-reward categories and let rent be paid by bank transfer:

Use Kiwi or Tata Neu RuPay credit card for all UPI payments (1-1.5% rewards)

Use HSBC Live+ for food delivery and grocery (10% on Swiggy/Zepto)

Use Amazon Pay ICICI for all Amazon purchases (5% no cap)

Pay rent by bank transfer (free) — do not pay processing fee

Frequently Asked Questions

Related reading: Hidden Credit Card Charges India.

Q: Can I pay rent via credit card on CRED in 2026?

Not via credit card — CRED stopped accepting credit card rent payments after the September 2025 RBI directive. CRED still processes rent via UPI from bank accounts.

Q: Does paying rent via credit card help build CIBIL score?

The credit card usage helps (utilisation + on-time payment), but there is no specific benefit from the nature of the transaction. Any consistent credit card usage with on-time payment builds CIBIL.

Q: What if my landlord refuses digital payment and wants cash?

This is a separate issue from the credit card rule change. The RBI changes affect aggregators, not direct bank transfers. You can always pay rent via NEFT/IMPS bank transfer to your landlord's account — this has no restrictions.

Related guides

← Back to all articles