The Credit Card Rent Hack: How It Works
The Problem
Most landlords only accept UPI, bank transfers, or cash. These payment methods give you zero rewards. If you're paying ₹20,000-₹50,000/month in rent, you're missing out on ₹2,400-₹18,000 annually in potential cashback!
The Solution: Rent Payment Platforms
Platforms like RedGiraffe and NoBroker act as intermediaries:
- You pay rent using your credit card on their platform (they charge 1-2% convenience fee)
- They transfer the money to your landlord via NEFT/IMPS
- You earn credit card rewards (1-3% depending on card)
- You get a verified rent receipt for HRA claims
💡 Pro Strategy
The key is choosing a merchant-agnostic card (like HDFC Millennia or Axis Magnus) that doesn't exclude rent payment platforms from rewards. Many cards (like HDFC Diners Black) explicitly exclude rent payments from cashback.
Best Credit Cards for Rent Payment (2026 Update)
🏆 #1: HDFC Millennia Credit Card
Cashback: 1% on all spends (including rent platforms) • Annual Fee: ₹1,000 (waived on ₹1L spend/year)
Why it's perfect for rent:
- 1% cashback applies to RedGiraffe/NoBroker (not excluded from MCC codes)
- No monthly cap on 1% base rewards
- Best for rent: ₹20K-₹50K/month range
Example: ₹30,000 rent/month • Annual: ₹3.6L • Platform fee (1.5%): -₹5,400 • Rewards (1%): +₹3,600 • Net cost: -₹1,800/year
⚠️ Not profitable on its own, but valuable when combined with HRA tax savings and hitting the ₹1L waiver threshold
🥈 #2: SBI Cashback Credit Card
Cashback: 5% on online transactions (capped ₹5,000/month) • Annual Fee: ₹999 (waived on ₹2L spend/year)
Rent Payment Status (Feb 2026):
- ⚠️ Restricted: RedGiraffe/NoBroker may code as "rent" MCC and get 0% cashback
- Some users report 5% success on smaller platforms (YMMV)
- Best used for: Other online spends to maximize the ₹5K/month cap
💡 Verdict: Great card overall, but unreliable for rent. Use HDFC Millennia or Axis Magnus instead.
👑 #3: Axis Magnus (Premium - High Rent Only)
Rewards: 12 Edge Rewards per ₹200 (1.2% base) • Milestone bonuses • Annual Fee: ₹10,000 + GST
- Best for: Rent ₹80K+/month (₹9.6L+/year)
- Milestone: 25,000 bonus Edge Rewards on ₹10L spend (worth ~₹12,500)
- Platform fee: 1.5% • Effective return: ~1.5-2% after milestones
Example: ₹1,00,000 rent/month • Annual: ₹12L • Fee: -₹14,400 • Rewards: +₹14,400 (base) + ₹12,500 (milestone) • Net profit: ~₹12,500/year ✅
| Card | Rent Reward Rate | Annual Fee | Best For Rent Range | Verdict |
|---|---|---|---|---|
| HDFC Millennia | 1% (confirmed) | ₹1,000 (waived ₹1L) | ₹15K-₹50K/month | ✅ Best Overall |
| SBI Cashback | 0-5% (unreliable) | ₹999 (waived ₹2L) | N/A | ⚠️ Avoid for Rent |
| Axis Magnus | 1.2-2% (with milestones) | ₹10,000 + GST | ₹80K+/month | 👑 Premium Choice |
Rent Payment Platforms: RedGiraffe vs NoBroker
🦒 RedGiraffe
- Convenience Fee: 1-1.5% (lowest)
- Payment Speed: NEFT within 1-2 business days
- HRA Receipt: Auto-generated, includes landlord PAN
- Credit Cards Accepted: All major cards (Visa, MC, Amex)
- User Reviews: 4.2/5 (reliable, occasional payment delays)
🏠 NoBroker Pay
- Convenience Fee: 1.5-2%
- Payment Speed: IMPS (instant) or NEFT
- HRA Receipt: Available, downloadable from dashboard
- Credit Cards Accepted: Most cards (some restrictions on Amex)
- User Reviews: 4.0/5 (established brand, higher fees)
⚠️ Important Notes
- • Both platforms are 100% legal and RBI-compliant
- • Landlords receive full rent amount (fee charged to you separately)
- • Use official apps/websites only (avoid third-party aggregators)
- • Keep payment confirmation emails for tax records
The "HRA Proof" Checklist: 5 Things Income Tax Looks For
Even if you pay rent via credit card, you still need proper documentation for HRA exemption. Here's what the IT Department verifies:
Rent Receipt with All Details
Must include: Landlord name, tenant name, rent amount, rental period, receipt date, signature
Generate Free Rent Receipt →Landlord's PAN (if annual rent > ₹1 lakh)
Critical: If you pay more than ₹8,334/month (₹1L/year), landlord must provide PAN. Without it, HRA exemption above ₹1L is disallowed.
Revenue Stamps (for cash payments > ₹5,000)
If monthly rent in cash exceeds ₹5,000, receipts need revenue stamps (₹1 stamp per ₹1,000). Not required for digital payments (UPI/Card/NEFT).
Rental Agreement (recommended)
While not mandatory for HRA claim, keep a notarized/registered rental agreement. IT may ask for it during scrutiny. Include rent amount, duration, landlord/tenant details.
Proof of Payment (Bank Statement/Credit Card Statement)
Keep bank statements showing rent payments. If using credit card via RedGiraffe/NoBroker, save platform transaction receipts + credit card statement as proof.
💡 Special Case: Paying Rent to Parents
Yes, it's legal to pay rent to parents and claim HRA! But maintain these 3 documents:
- Written rental agreement with your parent
- Monthly rent receipts signed by parent
- Bank transfer proof (don't use cash to avoid suspicion)
⚠️ Your parent must declare this as "income from house property" in their tax return. If they're in 0% tax bracket, they pay no tax. Win-win!
Step-by-Step: Pay Rent via Credit Card (RedGiraffe Example)
- 1
Sign Up on RedGiraffe
Visit redgiraffe.co.in → Sign up with mobile/email → Complete KYC (Aadhaar verification)
- 2
Add Landlord Details
Enter: Landlord name, bank account number, IFSC code, PAN (if rent >₹1L/year)
💡 Tip: Get landlord's PAN from rent agreement or ask directly. It's mandatory for HRA above ₹1L.
- 3
Enter Rent Amount & Choose Credit Card
Input monthly rent → Select payment frequency → Add your HDFC Millennia/other card → Confirm 1.5% convenience fee
- 4
Complete Payment
Review details → Pay via card → Landlord receives money in 1-2 business days via NEFT
- 5
Download Rent Receipt
Go to "My Payments" → Download PDF receipt → Submit to HR for HRA
Bonus: RedGiraffe auto-generates receipts with landlord PAN. No need for manual formatting! But you can also create custom receipts here.
Frequently Asked Questions
Is paying rent via credit card legal in India?▾
Yes, 100% legal. Platforms like RedGiraffe and NoBroker are RBI-regulated payment aggregators. The Income Tax Department allows credit card payments for HRA claims as long as you have proper receipts and landlord details.
Will my landlord know I'm paying via credit card?▾
Your landlord receives money via NEFT/IMPS, just like a bank transfer. They see "RedGiraffe" or "NoBroker" as the sender. Inform them in advance to avoid confusion. The rent receipt will show the credit card platform as payment mode.
Do all credit cards give rewards on rent payments?▾
No. Many premium cards (HDFC Diners Black, Amex Platinum) exclude rent payment platforms from earning rewards. Always check your card's T&C. Safest bets: HDFC Millennia (1% confirmed), Axis Magnus (Edge Rewards on most MCCs).
Is the 1-2% platform fee worth it?▾
It depends on your card and rent amount. If your card gives 1% and fee is 1.5%, you lose 0.5%. But: The convenience of HRA receipts, credit card float (45-day interest-free), and accumulating milestone rewards can make it worthwhile. Think of the -0.5% as a fee for hassle-free tax documentation.
Can I claim HRA if I'm paying rent to my parents?▾
Yes! It's completely legal. You need: (1) Written rental agreement with parent, (2) Monthly rent receipts, (3) Proof of payment (bank transfers preferred). Your parent must declare this as "income from house property" in their ITR. If they're in 0% tax bracket, they pay no tax.
What if my landlord doesn't have a PAN card?▾
If annual rent exceeds ₹1 lakh, landlord must have PAN. Without PAN, you can claim HRA exemption only up to ₹1 lakh/year. The landlord needs to declare rental income anyway, so they should have PAN. If they refuse, consider negotiating or finding another rental.
Don't Just Pay Rent—Get Paid to Pay Rent
Generate verified rent receipts in 2 minutes. Submit to HR before the deadline and claim your HRA tax exemption.
⏰ Only 45 days left for FY 2025-26 HRA submissions • No signup required
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